Life insurance is often presented as something you buy for other people. For many adults, especially those navigating life on their own, that framing misses the mark. Life insurance can serve a practical purpose for singles by helping manage debt, cover final expenses, and support long-term financial plans, even without dependents.
Why Single People Buy Life Insurance (Even Without Dependents)
Covering Final Expenses
Funeral costs add up fast. According to the National Funeral Directors Association, the average funeral costs several thousand dollars, before unexpected expenses.1 Life insurance can help cover these costs so they don’t fall on family members during an already stressful time.
Paying Off Debt
Life insurance benefits can help cover outstanding financial obligations, including:
- Credit card balances
- Private student loans
- Certain federal student loans not discharged at death
- Medical bills
- Business loans
Without coverage, these debts may reduce your estate or create added financial and emotional strain for loved ones handling your affairs.
Protecting Aging Parents or Co-Signers
Even without dependents, others may still be financially connected to you. Parents may have co-signed student loans, or family members may have helped finance a business. Life insurance can help protect them from taking on those financial responsibilities if you’re no longer able to meet them.
Planning for a Future Family
Being single today doesn’t mean your situation won’t change. Buying life insurance earlier can help lock in coverage while you’re healthy and may mean lower premiums. If marriage or children are part of your long-term plans, having a policy in place can help make future financial decisions easier as your life changes.
Types of Life Insurance for Single People
Term Life Insurance: Simple and Budget-Friendly
Term life insurance provides coverage for a set period - often 10, 20, or 30 years. If you pass away during the term, the policy pays a death benefit to your beneficiary. When the term ends, coverage stops unless you renew or convert the policy.
Why single people choose term life:
- Lower insurance costs
- Straightforward coverage
- Helps cover specific financial obligations
- Works well for temporary needs
A term life policy may be a good fit if your main goal is covering debts, private student loans, or final expenses without committing to higher premiums.
Whole Life Insurance: Lifetime Coverage with Potential Cash Value
Whole life insurance is a type of permanent coverage that lasts your entire life. It includes a guaranteed death benefit and a cash value component that grows over time.
Why some single people choose whole life:
- Coverage doesn’t expire
- Cash value potentially grows on a generally tax-deferred basis
- Can support long-term financial plans
- Predictable premium payments
The potential cash value can be accessed through policy loans, which some people use for emergencies or other financial needs. While this option isn’t right for everyone, taking a loan can reduce the policy’s cash value and death benefit, and unpaid balances may cause the policy to lapse if they grow too large.
Universal Life Insurance: Flexible and Adjustable
Universal life insurance is another form of permanent coverage that offers added flexibility. Depending on the policy, you may be able to adjust premium payments and death benefits over time.
Why universal life appeals to some singles:
- Flexible premium structure
- Adjustable coverage options
- Includes potential cash value growth
- Can adapt as income or goals change
Universal life policies require careful management. Missing payments or misjudging cash value performance can affect long-term coverage, so guidance from an insurance professional can be especially helpful.
How Much Life Insurance Does a Single Person Need?
There’s no one-size-fits-all number. The right amount of life insurance depends on what you want the policy to accomplish. When deciding how much coverage you need, consider factors such as:
- Funeral costs and other final expenses
- Outstanding credit card balances
- Remaining student loans or business loans
- Unpaid medical bills and ongoing health care expenses
- Financial support for parents or other loved ones who may rely on you
- Long-term goals, such as retirement savings or leaving a legacy
A life insurance calculator can help estimate coverage needs, but it’s only a starting point. Talking with an insurance professional can help refine those numbers based on your specific situation.
What Impacts the Cost of Life Insurance?
Life insurance premiums can vary widely, even among people of the same age. Several factors work together to determine cost:
- Age at application: Younger applicants typically pay lower premiums, while rates tend to rise with age.
- Health and medical history: Insurers review overall health, existing conditions, and family medical history. A medical exam is often part of this process.
- Lifestyle choices: Tobacco use, certain hobbies, and high-risk activities can increase premiums.
- Policy type: Term and permanent policies are priced differently, with longer coverage periods or cash value features generally costing more.
- Coverage amount: Higher coverage amounts usually result in higher premiums.
- Timing: Waiting to apply can lead to higher costs than expected, especially if health changes over time.
Taken together, these factors help explain why two people with similar profiles may receive very different quotes.
Do Single People Need Cash Value Life Insurance?
Not always. For many single people, cash value life insurance isn’t a must-have. However, in certain situations, it can support longer-term financial goals. Cash value policies - such as whole life or universal life insurance - include features that go beyond basic coverage, including:
- Tax-deferred growth on the policy’s cash value
- Access to funds through policy loans, if needed
- A guaranteed death benefit for beneficiaries
That said, these policies generally come with higher premiums and require a long-term commitment to maintain their value. For this reason, they’re often a better fit for individuals who have already handled foundational financial priorities, such as:
- Building an emergency fund
- Paying down outstanding debt
For single people who haven’t yet met those goals, simpler coverage options may be easier to manage while keeping monthly costs lower.
Life Insurance & Long-Term Care Considerations
Some permanent life insurance policies offer optional riders that address long-term care or chronic illness needs. These riders may allow you to access a portion of the policy’s death benefit if certain medical criteria are met.
This feature can be especially helpful for single individuals who are planning for potential future medical expenses without relying on family support.
What to Keep in Mind
- Rider availability varies by policy. Not all permanent policies include the same options.
- Eligibility requirements differ. Medical conditions, waiting periods, and benefit triggers can vary.
- Using the rider may reduce the death benefit. Any amount accessed typically lowers what beneficiaries receive.
Because rider terms can vary widely, it’s a good idea to review policy details closely and ask questions upfront. Taking the time to understand how a rider works can help avoid surprises later.
Choosing the Right Life Insurance Policy When You’re Single
Navigating the decision-making process for life insurance doesn’t have to feel overwhelming. A straightforward approach can help make it more manageable:
- Assess your financial obligations: List outstanding debts, anticipated medical expenses, and final costs you’d want covered.
- Clarify future financial goals: Consider plans such as starting a family, business responsibilities, or the potential need for long-term care.
- Compare coverage options: Review term, whole, and universal life insurance side by side to understand how each works and what they offer.
- Research insurance companies: Look for insurers with strong financial ratings and clear, transparent policy terms.
- Get multiple quotes: Comparing premiums across providers can give you a better sense of pricing and options in the market.
- Talk with an insurance professional: Personalized guidance can help ensure you choose coverage that fits your needs, without buying too much or too little.
Final Thoughts
Life insurance isn’t only for spouses and parents. For many adults, coverage for single people can help address debts, cover final expenses, and support future plans. It’s a practical way to prepare for what’s ahead, with flexibility to adapt as life changes.
Choose life insurance to help protect those who depend on you. Request a Free Life Insurance Quote
Sources
- Statistics. https://nfda.org/news/statistics.
