Many have attempted to quantify who the best life insurance…
Yes, a single person may need life insurance for all sorts of reasons.
Life insurance can provide your loved ones with a financial safety net should you pass away unexpectedly.
Even if the situations above don’t apply to you, having a policy in place when you’re single has lots of benefits.
For example, you could leave a cash gift for your loved ones, or you could help to provide funds so that your funeral costs won’t be a burden after you’re gone.
In this guide, we answer the question ‘is life insurance worth it for a single person?’ and explain policy types you may consider when living the single life...
Singles with dependent children
In the UK, there’re around 1.8 million single parents with dependent children and 21% of all children live in lone parent families.
If you’re a single mum or dad then life insurance can be essential for securing the financial future of your children.
In the UK, the average cost of raising a child to the age of 18 for a lone parent is £208,735.
Life insurance can help to give you peace of mind that should the unexpected happen to you, your children have the financial support they need.
Singles with other dependents
Life insurance can provide a financial safety net for anyone who depends on you financially. Whether that be your children, a sibling, a parent or even a friend.
In the event of your death, the pay out from your policy could help to replace your income and help to cover essential costs.
Life insurance can also be used to help make life more comfortable for the people you leave behind.
For example, if you were to pass away whilst caring for an elderly parent, they could use the money could help pay for a private carer or to get private medical treatment.
Being the sole earner for your household and/or financially supporting others may mean that your monthly budget is tight, but at Reassured, we can find you our best life insurance quotes free of charge.
Being the sole earner for your household and/or financially supporting others may mean that your monthly budget is tight, but at Reassured, we can help you to find the best life insurance quotes free of charge.
As a single person with no dependents, the need for life insurance isn’t as obvious. However, there are many reasons to consider getting a policy.
To help pay for your funeral
Regardless of your age or relationship status, having life insurance in place to cover the cost of your funeral could bring some comfort for you and your loved ones.
These days, even a simple funeral can cost thousands of pounds (average cost of a funeral is £3,953) which is a financial burden many of us wouldn’t want to leave behind.
If you’re a single person over 50, then you may consider an over 50s plan to help cover your funeral costs (acceptance is guaranteed to people aged 50 - 85).
To help pay off your mortgage
Life insurance is commonly taken out to help protect a mortgage. You could arrange policy which is designed to clear your mortgage in the event of your death. This can help to take care of any outstanding debt for whoever inherits your home.
Life insurance may be even more important if you’re one of the many people who’s bought a property with a friend or relative. Should you pass away unexpectedly, the pay out from the policy will help them to cover your half of the mortgage so they could remain in their home.
It’s sensible to compare multiple quotes for mortgage life insurance, even if you’ve been offered a policy through your mortgage lender (as usually they don’t provide the best rates).
To leave an inheritance
You may not need to protect the financial future of a partner or children, but you may want to leave a cash gift to a special friend, relative or charity after you’re gone. The pay out from your life insurance policy can help to provide an inheritance to whoever you wish.
If you intend to leave some money behind to a beneficiary, then you may consider writing your policy in trust. This can help to avoid or minimise inheritance tax (IHT) which may apply to the pay out sum and ensures that the funds are distributed according to your wishes.
We discuss the benefits of writing your life insurance in trust in more detail below.
To lock-in the lowest life insurance rates
Young and healthy singletons can secure the cheapest premiums available. If you’re in your teens, 20s or even 30s, you may not have huge financial responsibilities now, but is this likely to change?
As a young single person, you could take advantage of lower premiums today (whilst you can), on the assumption that you’ll buy a home, get married or have kids in the future.
If you do settle down at some point and find that your existing policy is no longer sufficient for your needs, then you could secure additional cover.
This can be done by taking out a new policy, or by increasing the pay out amount on your existing policy (only possible with some policies, this is known as the special events option or guaranteed insurability option).
We have an extensive article on life insurance for young adults if you’d like more information »
Life insurance arranged through Reassured starts from just 20p-a-day † .
Although the exact cost of your life insurance will depend on your personal circumstances and the policy you choose.
Your monthly life insurance premium will be calculated based on the following factors:
The table below displays the monthly cost of premiums for term-based and whole of life insurance. Quotes based on a non-smoker in good health for £100,000 of cover protection:
|Age||Level term cover (20-year term)||Decreasing term cover (20-year term)||Whole of life insurance|
The cost of life insurance varies from person to person as well as between different insurers.
For this reason, it’s sensible to compare multiple quotes from various insurers to make sure you’re getting the best deal.
You can do this quickly and easily by using a life insurance broker, such as Reassured (our quotes are free).
There are different types of life insurance designed to suit different needs and budgets. Each of these can be arranged through Reassured:
Get in touch with Reassured to learn more about these policy options and get your free quotes. We can find you our best life insurance quotes for singles.
Whether you decide to take out life insurance or not, there are other types of policies you may also consider as a single person.
For more information on either of these policies, contact Reassured without obligation.
Writing your life insurance in trust means placing someone you trust (a trustee) in charge of your policy.
When you pass away, the trustee will manage the pay out and ensure that it’s distributed according to your wishes.
Reassured provide a free trust writing service with most of the policies we arrange. When setting up your life insurance through us, don’t hesitate to ask a member of our team about this option.
The amount of life insurance you need depends on your personal circumstances and what you’d like your policy to cover.
If you’re a single person with no dependents and you’d like to protect your mortgage, then you’d simply take out enough cover to match your remaining mortgage balance.
It can be a little more complicated if you’re a single person with children (or other dependents) due to the additional financial responsibilities you may have.
One way to calculate how much life insurance you need is to multiply your annual salary by the number of years it will be until your children are financially independent.
Subsequently, the pay out sum will help to replace your income in the meantime and ensure that they can continue their current lifestyle if you were no longer around.
Another way is to add up your current financial commitments, as well as future expenses such as funeral costs and education fees, to work out how much cover you need.
If you’re a singleton in your teens or 20s, and haven’t bought a home or started a family yet, then you may want to take these life changes into account when taking out cover.
Lots of married couples take out joint life insurance to protect each other in the event that one partner passes away.
However, if the relationship comes to an end, then this type of cover will no longer suit the needs of both parties.
If you’re recently single after a divorce and have an existing joint policy with your ex-spouse, then there’s usually three options:
In another circumstance, if you and your ex-spouse had a single life insurance policy each, then you may consider:
We have written a dedicated joint life insurance after divorce article if you require more information »
As discussed, there are many reasons to get life insurance when you’re single - even if you don’t have dependents.
However, there are some situations where life insurance may not be right for you.
No matter your circumstances, Reassured is here to help you find our most suitable life insurance for a single person.
A member of our friendly team is on hand to listen to your unique requirements and source you our best available quotes.
As mentioned, our customer service is award-winning and we’re an FCA-regulated broker, ensuring that you’re in great hands throughout your journey.
Make the most of our FEE-FREE service to arrange affordable financial protection today.
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