Scenarios where a single person might need life insurance

Scenarios where a single person might need life insurance

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Most people associate life insurance with marriage and kids. Although this is true, there are also many reasons a single person with no children might need life insurance.

If you have young siblings that depend on you financially or student loans that you don't want to pass on to your parents, life insurance can be the answer to keep your loved ones protected in the face of adversity. Life is unpredictable, and it is never too much to have protection in place - even if you feel like you don't need it now.

Further than that, the fact that you are young, healthy, and with no apparent need for life insurance makes you the perfect candidate for lower premiums. You might think you don't need it, but the truth is that you are in the best position to acquire good coverage for less.

Here’s why you should get life insurance while you are young

When you don’t have kids or a spouse, insurance doesn’t seem like a thing you need in your life. It is entirely understandable. However, the simple fact that you are young makes you the perfect candidate for the best products and rates. 

As you know, many factors affect life insurance premiums, but age and health are usually the two key determinants. Life insurance costs tend to go up with age, both for term and permanent life plans. Why does it work like that? Because every birthday puts you one year closer to your life expectancy and, as a result, you become more risky and expensive to insure. Furthermore, it is also worth keeping in mind that the older you get, the more likely it is for you to develop health issues (such as high blood pressure, heart diseases, or diabetes) that are hard to ensure.

So think about it. Since you will never be younger than you are right now, the premiums will never be lower than at this present moment. Even if you are single and childless, there are still many reasons why it could make sense for you to get insured. Below we have gathered six good examples for you.

What are the scenarios where a single person might need life insurance?


  • If you have student loans

Depending on where you went to college and how many degrees you earned, you might have gathered some substantial student loan debt.

According to Statistics Canada, a college graduate owes, on average, $14,200 at the time of graduation. Student loan debt is a huge problem for many young Canadians, especially those just starting out after college. If this is your case and you owe private student loans that your parents (or someone else) cosigned for, life insurance can be a smart decision to protect them.
In case something happens to you, your beneficiaries will be able to cover your remaining debts without struggling or sacrificing their lifestyle.

  • If you have outstanding debts

As a young adult, it is possible that you have some co-signed debts, whether it is a car or a jointly-owned credit card. Any debt with someone else’s name on it will become their responsibility if something happens to you. Life insurance can help your loved ones pay these responsibilities without going into debt themselves.

Considering that beneficiaries can use the death benefit from a life insurance policy to pay off debt, a simple term life plan can be enough for you to spare your loved ones from financial distress. For this case scenario, the rule of thumb is to buy a life insurance policy with a term that lasts the length of your most extensive source of debt.

  • If you have a mortgage

If you are planning to become a homeowner, you are unquestionably worried about mortgage payments. After all, this is the sort of financial decision that needs a lot of planning and stability. While researching, you have certainly come across mortgage insurance. What you probably don't know is that term life insurance is often a smarter choice.

Mortgage insurance is a type of policy that pays off your mortgage's balance if you pass away. This insurance's death benefit goes towards your lender, which means your protection is over once you finish paying the mortgage. If you opt for a term life insurance (or mortgage life insurance) policy, the benefit will go straight to your beneficiaries. Choosing a term life plan means that, regardless of the remaining balance of your loan, you can keep your loved one's lifestyle protected.

  • If you have financial dependents

When people think of life insurance, they usually think of married couples with children. Yet, the meaning of dependents goes way beyond that. Many Canadians help financially support older parents, grandparents, siblings, or even children in their family/community who aren’t biologically theirs. If that is your case and you have family members who rely on you financially, life insurance is something you should definitely consider.

In these plans, you are the one who chooses the beneficiary (or beneficiaries) of your policy’s benefit. Contrary to what most people believe, this title isn’t limited to biological kids or spouses - it can practically be anyone. And remember: if your circumstances change, you can easily change the beneficiary of your policy.

  • If you plan to have a family in the future

Ok, you may be single and childless right now - but that doesn't mean you will stay that way in the near future. You may decide to settle down in a few years, and, at that point, the appeal of life insurance will become undeniable. The downside is that, by that time, you will likely be charged higher premiums for the same amount of coverage simply because you are older.

Having an insurance plan is part of having a strong financial foundation and something you should start organizing as soon as it is possible. And even if you believe that family life isn’t for you, think about this: there will always be people who will depend on you. Take your parents, for example. If they don’t have enough savings, you may eventually be responsible for helping with their debts, medical care, and final expenses.

  • If you want to leave your final expenses handled

Not that young anymore? Having a life insurance policy in place can give you great relief, especially if you are worried about your final expenses. Even if you are completely on your own, completely debt-free, and with no plans of building a family, someone will still have to be responsible for your final expenses. Those might include medical care, long-term care home, and even funeral arrangements.

No one likes to think about their own mortality, but doing so is the responsible way of having everything handled and to avoid burdening others. In Canada, final expenses can be costly. According to CBC, burial costs between $5,000 and $10,000 in Canada, and the trend is that they continue to increase.
Having a life insurance policy, even if small, could mean a great deal to those who will be responsible for handling these costs.

Bottom line: get life insurance - even if it is a small policy

Life insurance is something people don't worry about until they get older, get married, or start a family. However, as we have shown in this article, having an insurance plan in place can be useful for many other circumstances. Even if you are single and childless, life insurance is a great tool for your future and for guaranteeing that your loved ones will always be financially safe - and that includes your siblings, parents, grandparents, and whoever you consider important in your life.

If you don’t have much savings and don’t want to engage in a big commitment at this point, you can consider getting a small term policy. This way, you can guarantee that specific debts or expenses will be covered if something unexpected happens to you.

Now, the only thing left for you to do is finding the perfect insurance plan!

TermLite has the perfect life insurance plans for single people

When it comes to choosing a life insurance policy, you have to consider many factors, including your financial situation and your expected future needs - even if you are a single person. At TermLite, we take pride in providing personalized plans for our clients, fitting each unique circumstance. No matter your needs, we can give you the plan you and your loved ones deserve.

As a single person, you can choose to be protected for 10, 20, 30, or for life and apply for a benefit as high as $1,000,000. The healthier and younger you are, the more chances you have to lock-in lower premiums.

With us, the application process is quite straightforward, as we don’t require medical exams, face-to-face meetings, or paperwork. By filling our quick form, you can receive a quote over the phone and get your desired plan in as little as 24 hours.

It has never been easier to protect the people you care about!


Written by Raquel Dias

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