According to the industry trade group LIMRA, about 35 million U.S. households do not have life insurance. Although many people think they do not need life insurance as they have no children depending on them, there are actually many reasons for even childless people to invest in life insurance. Protect Your Partner You might not think of your partner as your financial dependent, particularly if they have their own income, but are you sure that your partner could meet all your joint financial obligations if your income was suddenly removed? Mortgages are a particular concern for many couples, as the surviving partner can end up losing their home if they are not able to meet the repayments. Ideally, you should have enough life insurance to either pay off the mortgage or pay down enough of the remaining capital that the surviving partner can refinance the property. In some states, a surviving spouse can sometimes be held responsible for their deceased partner's debts. If you have credit card debts that you are servicing using your own income, don't assume that they will disappear on your death, or that your partner will be able to cope with them. Even if your partner's income is enough to cover their expenses, consider how life insurance could take a weight off their mind. Coping in the event of a loved one's death can be tough, and could require your partner to take time off work or pay for grief counseling. Life insurance can help to support your partner through this difficult period. Cover Funeral Costs What if you don't have a partner? Can you then safely forego life insurance? The truth is that even if you are single, the cost of your funeral will fall on someone that you leave behind, whether that is your parents, siblings, or another relative. Even if your assets could comfortably cover the cost of burying you, the cash might not be immediately available, leaving your family facing a big bill. Avoid leaving loved ones with this stress by purchasing a small life insurance policy that can cover your funeral costs. Invest Now, Save Later Perhaps you think you don't need life insurance because you are young, childless, single... and you don't plan on dying any time soon! Ironically, this is actually the best time in your life to purchase a life insurance policy. Life insurance is typically cheapest for young, healthy people. Buying a policy now could protect any dependents you have in the future. If you don't have any children now, but plan on having them in future, then buying life insurance now could be a smart choice. Conclusion The amount of life insurance that you buy depends on your personal circumstances; those with a mortgage and spouse usually need much more than a single adult. However, having enough life insurance to at least cover funeral costs is a good idea for almost everyone. Don't assume that not having kids means you don't need life insurance; there are many benefits even for childless people.
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