All too often we hear that single people with no dependents don’t need life insurance, period. I encourage single people with no dependents to ponder this statement and take a closer look at their personal situation.
There are occurrences when it actually makes sense to have life insurance, even if you are single.
- Dependents are not necessarily children. A growing number of adults care for their aging parents, including financially. You may be in this category; or you may take care of another relative. In any case, you want them to be protected should something happen to you.
- You have some assets. If your wealth is substantial, you can most likely self-insure. Otherwise, life insurance can help with financial costs related to your estate, such as legal fees and taxes.
- You want to leave a legacy. If you bequest your estate to your favourite charity or a relative, you don’t want them to be on the hook for your funeral and other after-death expenses. The average cost of a funeral (burial) in Canada is $ 8 000.00. The Canada Pension Plan death benefit is $ 2 500.00 maximum, if you meet the requirements.
- You own your company. Life insurance can pay for outstanding loans and taxes, as well as provide money for a buy-out if you have business partners.
You may also want to keep in mind your “single” situation might be temporary. It may be easier to modify an existing policy than getting a new one. It will also be cheaper to get insurance when you are (still) young and healthy.
You may already have life insurance through your employer. Usually, the amount is minimal and may not be enough to cover for all expenses. You will also loose this benefit if you leave your job.