Adverts for cheap life insurance always put the family spin on their sales pitches in order to lure us in. “You need to think about your family’s future” and “how will your loved ones cope financially after you’re gone?” are some common phrases used to get us to hurriedly accept a life insurance policy. But what happens if, by choice or otherwise, you have no children, or you’re single? With no one who financially depends on you, do you still need a life insurance policy?
So you have no one who needs to pick up any costs in the event of your death. Who would pay for your funeral? Yes, it’s a slightly morbid thought, but it bears thinking about. Even a simple ceremony can be very costly (the average funeral costs over £7,000) and someone else is going to have to foot the bill, usually relatives or close friends. Even a low-level life insurance policy could be of a great help in paying for your funeral costs, and releases your relatives of the potential financial burden of having to pay out themselves. If you have no blood relatives alive and nothing to pay your own funeral costs, you will likely be given what is nicknamed a ‘pauper’s funeral’, whereby the local council pays for a simple service followed by a burial in an unmarked grave that can be reused. Here too, a life insurance payout would mean that you could get the send-off that you want.
Dependants you didn’t know about
Spouses and children are the first ones that come to mind when people say ‘dependants’, but it may be the case that you have dependants and you just aren’t aware of it. If you look after an elderly or disabled relative, how would they get by financially without you? The same applies if you’ve taken out a joint loan with someone, such as a mortgage. If you were to die, the entire of that debt would fall onto the other person, leaving them in a very awkward situation. The payout of a life insurance policy would at the very least ease the costs placed on those people who are affected.
One of the add-ons you can get with a life insurance policy is critical illness cover, which allows for a payout in the event that you develop a serious illness such as cancer or lung disease. If you have a family history of these kinds of illnesses, then it would be better to be covered for it from the get-go rather than realising too late that you would have needed it. On the plus side, if you’re younger you can enjoy lower-rates on your insurance, so it’s less expensive to get cover now than later on down the line if an illness starts to show.
If you are single and have no children, it’s not immediately important that you get life insurance. Don’t forget, though, that circumstances can change very quickly, so having some form of cover already in place if you do start a family would be of great benefit.