Do I need life insurance if I’m single?

If you’re living the single life you might wonder if life insurance is necessary. Here, we take a look at the circumstances which could make it worthwhile. 

If you’re living the single life you might wonder if life insurance is necessary. Here, we take a look at the circumstances which could make it worthwhile. 

Kamran Altaf
From the Life team
minute read
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Posted 30 JUNE 2020

Why take out life insurance?

Getting married or moving in together can be a cue for many people to consider taking out life insurance. But what if you don’t have a partner? There are still reasons you might want to think about life insurance. For example, you may be single, but still have dependents.  
More than eight million people in the UK live alone. Many of them have dependents who they don’t share a home with, who could still be financially affected by their death. Here’s what to consider. 

Cover for younger people

Although you might not have a partner now, that may change in the future. And the older you get, the more expensive life insurance is likely to become.

For example, our data shows that the average price of a life insurance premium is £18.11** per month for 16-29-year-olds, compared to £32.34 per month for 40-49-year olds. This is why it might be worth considering life insurance while you’re still a little younger, even if you don’t yet have any dependants.

A level term policy could cover you for a set number of years, during which you might get married and have children. But before you buy a policy, check the terms and conditions to make sure the premium is fixed.

**Our average life insurance prices are based on all our customer quotes for each age group stated. They cover a mix of personal circumstances, as well as different types and levels of cover. All average premiums are based on Compare the Market data from 1 March 2020 – 1 June 2020, where the customer has clicked through to buy from the life insurance provider. You may find a cheaper or more expensive quote based on your personal circumstances.

Life insurance for single parents

As a solo parent, your children might be completely reliant on you financially. Having life insurance can give you peace of mind that they’d have some protection if anything happened to you. Typically, life insurance pays out a lump sum, which could cover things like the mortgage and outstanding debts and bills. Or it could be used for future expenses, giving your children some financial security. 

Life insurance for people living with friends 

There’s evidence to suggest that, with high property prices, buying a home with friends is becoming more popular. If you own a home with a friend or a relative, you’ll need to think about how your share of the mortgage would be paid if you were to die, or if you’re suddenly unable to work because of illness.  
Life insurance could cover your mortgage payments, while critical illness cover could provide you with a pay-out if you fall ill with one of the conditions outlined on your policy. Always check your policy’s terms and conditions to see what is and isn’t included. 

Life insurance for carers

It’s not just partners and kids that depend on you. If you’re caring for elderly or disabled parents or relatives, they might suffer financially if you were to die. The lump sum that could be paid out by a life insurance policy, could help relieve some of this burden.

Covering funeral costs

Knowing your funeral costs could be covered can be a big relief, for you and your loved ones who won’t be stuck with a hefty bill. If you don’t think you need life insurance, you can buy funeral insurance as a standalone policy. 

Leaving a legacy

Even if no one is financially dependent on you, you might want to leave your assets to loved ones or a charity when you die. Life insurance can help pay off your mortgage, so your beneficiaries can inherit your property.

Whole of life cover can be used to cover inheritance tax. But you need to make sure the policy is written in trust, to keep the pay-out separate from your estate. That can help avoid having inheritance tax deducted from life insurance pay-outs.

Other life insurance considerations if you’re single

Making a will is important if you want to leave assets to named friends, relatives or your live-in partner. If you don’t have a will, your assets will be divided according to the terms of intestacy.

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