Six Reasons Single People Need Life Insurance Too

Six Reasons Single People Need Life Insurance Too Episode 338 – Do single people really need life insurance? Here are six good reasons why they might. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 338 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, six reasons single people need life insurance too. Not long ago, in episode 333, we talked about why young people should consider life insurance. There are also a few reasons why someone who is single—whether young or old—may want to consider getting life insurance. Here are six of our favorite reasons. 1. You have a mortgage or other debt. It’s not just a mortgage. It could be student loans or credit card bills. If someone co-signed some of your debts, these debts could become your family’s responsibility. Do you really want someone else to be saddled with your debt if something happens to you? Losing you would be tough enough. Life insurance can help cover these debts so your family won’t have to worry about them. They’ll have enough worries as it is. 2. You have dependents. You might not have kids, but are there others depending on you financially? Maybe your parents, siblings, or even some their children? Life insurance can help them. It can help provide financial security if you’re not around. And it doesn’t have to be complicated. Even, let’s say, a 10-year term policy—listing that individual as a beneficiary—could be helpful. 3. You want to cover your final expenses. In 2025, an average funeral costs somewhere between $7,000 and $12,000.[1] What if your parents are your heirs and they have very little in savings? Your funeral could be a significant financial hardship for them. 4. You want to lock in a good rate. Premiums are generally less when you buy a policy when you’re young and healthy. Even if you’re not so young anymore, you’ll be a year older next year, and it’s only a matter of time before your health could potentially start to decline. Whether it’s term or permanent life insurance, regardless of what type of coverage you need, premiums are likely to be less today than they will be in the future. Buying a policy before major health issues arise gives you a chance to lock in a lower premium. This is especially beneficial with permanent coverage. 5. You’re a business owner. Let’s say you have a partner in a business. What happens to you if your partner dies, and what happens to your partner if you die? In spite of your best efforts, the business might not be able to continue without proper planning.Perhaps a buy/sell agreement could fill the void. With a simple cross-purchase arrangement, your partner buys a life insurance policy on you, while you buy one on your partner. If something happens to either one of you, there is a source of cash to buy out the deceased partner’s interest. The deceased partner’s heirs, rather than receiving a portion of a (perhaps illiquid) business, get cash. Other buy/sell arrangements may be better, depending on the specific circumstances. You’ll want to consult a life insurance professional and your attorney to confirm the most appropriate structure. We’ll be talking more about buy/sell planning in a future episode. 6. You want to create a legacy. Even if you have no children or dependents, there may still be someone you want to help out financially or a cause that you’re passionate about. If you can afford it without a having major impact on your savings or emergency fund, a life insurance policy could be a great way to create a legacy for someone—or something—you really believe in. Of course, just because you may need insurance doesn’t always mean you can get it. Underwriting findings and rates vary from person to person. But for many people, it’s easier than you may think. Gone are the days when it took months to get a new policy. The overall process is much simpler and often less invasive than it used to be. Nowadays, many companies, including Security Mutual Life, offer an accelerated underwriting review to speed up the process. For many single people, perhaps the most difficult part of getting life insurance is simply getting started. Your Security Mutual Life insurance agent can help. He or she will assemble your team and coordinate with your attorney and tax professional to review your situation and to determine the insurance plan that will best suits your needs and objectives. [1] Lincoln Heritage Life Insurance Company. “How Much Does a Funeral Cost?” Lhlic.com. https://www.lhlic.com/consumer-resources/average-funeral-cost/ (accessed June 2, 2025). More SML Planning Minute Podcast Episodes This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information.  The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation. To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time. Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice. The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.  SubscribeApple PodcastsSpotifyAndroidPandoraby EmailTuneInDeezerRSSMore Subscribe Options