Things can get pretty complicated really quickly if this is the case. So be sure to talk with a financial planner about this possibility when you start a business.
5. Maybe you want to have kids someday
Let’s say you’re in your early twenties and don’t have kids now, or even want them for a few years. But you’re planning to have children in your thirties. Buying life insurance now could be a great option. The younger and healthier you are, the cheaper a policy will be.
So consider purchasing a 30-year policy now, when it’s really affordable. Then, when you do have children, you’ll already have some coverage in place. Maybe you don’t need complete coverage now. But laying down a base of coverage lets you get it for less. And then you can always add another policy or increase your coverage amount when you have children.
6. You live with a significant other, or even roommates
Does someone else depend on your financial contributions to keep a household running? You may need life insurance to help them out. Whether you live with a significant other or roommates, this could be the case.
This may not be like getting life insurance for a spouse or children, though. You shouldn’t need to replace your income for your housemates for ten years after you die. But you may want to give them enough to get through the rest of your apartment’s lease before they make new, more affordable housing arrangements.
7. Your family has a history of significant health issues
Do your parents have heart disease, diabetes, or other heritable health conditions? If you’re likely to be diagnosed with a condition like this in the future, buy life insurance now. While you’re still healthy, the insurance will be affordable. But if you are diagnosed with one of these conditions, it could get much more expensive.
Again, it’s best to plan for the future. If you want to have a family someday, plan to cover them with life insurance while you still qualify for affordable coverage. Then you won’t have to worry about it in the future.
8. Someone will have to deal with your end-of-life expenses
Even if you’re completely on your own, completely debt-free, and never want a family, you should still consider a small life insurance policy. This is because someone will need to pay your end-of-life and funeral expenses if the worst should happen.
A $10,000 to $25,000 policy is usually more than enough to cover these expenses. And it’s a good way to ensure that your friends and family members don’t have to go into debt to cover these expenses.
The Bottom Line
Chances are you fit somewhere on this list unless you have zero debt and significant savings as a single person. Term life insurance isn’t very expensive, especially if you’re in good health. For just a few bucks a month, you can make sure that should the worst happen to you, your family members will be provided for. If you aren’t sure who should be a beneficiary, how to divide the death benefits, or how to choose a policy, you’re might want to consider using PolicyGenius, a life insurance policy aggregator.
Just be sure that you set up your life insurance beneficiaries correctly. This may be less intuitive for you than for married people with kids. And if you’re buying a policy for multiple reasons that span multiple relationships, it gets more complicated. So make sure that your will and beneficiary lists match and clearly specify what money goes to whom for what purposes.