No kids? Here’s why you still need life insurance

Take a second to imagine the type of person who’s best suited for life insurance. You’re probably thinking of a married couple with at least one child, right? And at the same time, you’d be wrong to think that cover is only necessary for those with children. In fact, there are several reasons why people without kids may still need life insurance, which we’ll explore in this article.

Do I need life insurance if I have no children?

While it’s true that people may take out life insurance with their kids in mind, it’s a misconception that those without kids don’t need it. There’s plenty of people who don’t have children, but still have people who depend on them financially. It can be used for things like:

Supporting a partner or spouse

There are plenty of childless couples, whether by choice or natural circumstances. Nevertheless, they still need to be protected. Say you died suddenly, how would your partner cope with the loss of income? If you are insured, they will be able to claim on your policy, which may help them cover various expenses to maintain their standard of living.

Covering funeral costs

Saying goodbye is never easy, and sadly funerals can be expensive. For your loved ones, this could add financial strain during an already difficult time. Should you have life insurance cover, they can use the money from the payout towards your funeral arrangements, relieving them of that burden.

Protecting a mortgage

When you take out a mortgage, it’s assumed by all parties that you’ll be able to pay it off over time. Death can happen at any stage in life, even if you’re in the middle of paying off your mortgage. If you were to die before doing so it could leave your spouse in a perilous situation. Should they find themselves unable to cover the mortgage payments on their own, they may be forced to sell your property.

The same can be said if you currently rent a property. Whereas if you have life insurance, the money could be used to help cover the mortgage or rent payments, ensuring your partner can stay in their home.

Funding retirement

Life insurance can also be used for funding retirement. If you were to die before you or your partner have saved enough for retirement, the policy could provide them with the funds needed to retire ahead of schedule. This can help ensure that your partner is financially stable in their later years without your support.

Or if you own a business, you may wish to have protection so that the 

What if I’m not married?

If you’re in a relationship but not married, you may still need life insurance. Just because you’re not legally bound to your partner doesn’t mean that they won’t be financially impacted by your death. If they’re named as a beneficiary and things don’t work out, you can always update the policy. On the other hand, you may get married in the future, and so the need for cover may become greater.

What if I’m single?

Likewise, if you’re single, you may still need life insurance. While you may not have any dependants as of current, your circumstances could change over time. There may come a point where you have a spouse or children in which life insurance could be of use. Of course, that doesn’t mean you have to get life insurance right away, but it’s certainly something worth considering.

What if I wait to get life insurance?

Much like the last point, there could come a time when you find yourself needing life insurance. If you’re concerned about the cost, buying cover as a young adult could save money compared to when you are older.

When it comes to buying cover, some of the key factors that insurers use to determine your premiums are your age and health. In theory, the younger and healthier you are, the lower your premiums will likely be. By waiting to get life insurance, you may end up paying more for cover in the long run. However, this could mean paying for longer periods of time, which may not always make it a cost-effective choice.

Which type of policy should I choose?

There are several types of life insurance policies to pick from, including term and whole. Each type of policy has its own benefits and drawbacks, which you should take into consideration beforehand.

Here’s a rundown of how they work:

• Whole life insurance is essentially a form of permanent cover. As long as you continue to pay your premium, the policy will stay active. Once you die, the policy pays out a fixed lump sum to your chosen beneficiary.
• Term life insurance lasts for a set amount of years, which is agreed upon prior to taking out the policy. If you die within the term, a payout will be made to your beneficiaries. But if you outlive the policy, it will expire and you will receive no payout.

There is also joint life insurance – which covers two people under one standalone policy. If you’re married or in a long-term relationship, it can be a worthwhile option in which either party is protected in the event of death.

Whether you have children or not, you still need to make sure you have some form of plan in place in case something happens to you. That could be life insurance or another form of protection, but the main point is that your loved ones have support.