Life insurance isn’t only for people with families. It’s important for single people, too. Plus, policies tend to be the cheapest when people are in their 20s and 30s. They become more expensive with age and as health problems arise. Despite this, most single people put off purchasing life insurance until later in life with these common excuses. Sorry, we’re about to burst your bubble.
1. I have too many bills to pay.
Bills play a major role in everyone’s budget. According to the Bureau of Labor Statistics, the average consumer spends about $60,000 on expenses like food, housing, utilities, transportation and other services. For single people, it’s normal to spend up to (and sometimes more than) 50 percent of their paychecks on monthly bills. This limits the amount you have for insurance, healthcare and retirement savings. But did you know that life insurance can double as a tool for saving for retirement? It’s true. Life insurance can help single people by creating an additional stream of income and providing unexpected benefits. The right policy can protect your loved ones in the event of your death and help you prepare for retirement at the same time.
2. I need to tackle my debt before even thinking about life insurance.
Many Americans have debt. Between 2001 and 2016, the amount of student debt increased from $340 billion to $1.3 trillion. And in 2016, the average household with credit card debt had balances totaling $16,748. With this hefty financial obligation, it’s no surprise that more than 50 percent of Americans say that they have delayed their savings to make payments.
But debt doesn’t always vanish when you pass away. It’s possible you could leave your parents, an ex-spouse or another loved one saddled with your bills. Having even a small life insurance policy can ease the burden of these expenses.
3. I’m too busy caring for my aging parents.
Nearly 16 million single parents live with their children, according to the U.S. Census Bureau. If you’re a caregiver, the right life insurance policy can serve as a financial safety net for those you care about most.
4. It’s too expensive.
Studies have found that one of the top reasons single people put off buying life insurance is because they overestimate the cost. In fact, eight in 10 Americans misjudge the cost of life insurance, and those under 30 tend to overestimate the price by three times. The reality is that life insurance could cost less than $1 per day. That’s less than that daily latte. This simple life insurance calculator can give you an estimate of your true cost.
Still have questions? We’re ready to help. Your local Farm Bureau agent can walk you through the process.