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    Does someone single need life insurance?

    I got a call at work yesterday from a guy trying to sell me life insurance. He kept telling me what a great investment it was. Is life insurance a good investment for someone who is single?

    #2
    Re: Does someone single need life insurance?

    Anyone that come and tells you that life insurance is a great investment. Run the other way. They are trying to sell you whole life insurance and the agent makes big commissions on that.

    If you are going to get life insurance, get term. If you are single, you probably don't need it unless you have any dependents (will anyone be in a worse finanical situation if you die) including older parents.

    I had a small life insurance policy when I was single it was for less than $20k or something in that range. You might want to get something that covers your burial costs. Don't depend on your work life insurance either.

    If you are healthy and young, shop around. You can get some really good rates.

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      #3
      Re: Does someone single need life insurance?

      Theresa is correct. Unless you have someone who will need money in the case you did die (i.e. you are sending $300 a month to support your parents), then you don't need life insurance.

      The salesperson that called you was trying to sell whole life insurance, and you don't want to get involved with that as an investment. You can find much better investments on your own.

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        #4
        Re: Does someone single need life insurance?

        That's all correct. It's amazing how hard those agents will push whole life, universal life, whatever you want to call it, on to people. The premium costs so much more and the actual return on that additional money you have to pay towards your premium is horrible. A very disciplined approach would be to by term as mentioned above, then invest the difference between the whole life and term premiums into a long-term vehicle such as an indexed mutual fund. And if you want a guaranteed return you could always use that money to pay off credit card balances, a financed car, or your house.

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          #5
          We have done enough research and calculation to come to concusion that life insurance as investement vehicle is not right choice. It is complete waste of money and it is just way for insurance company to make money.

          If you have dependents, you may think of term life insurance. But not universal or whole life.

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            #6
            I think life insurance is important to have, at least as a way to cover your own final expenses--funeral, burial, repayment of any outstanding debt, so your family doesn't have to. For a single person with no family, responsibilities or anything like that, a small term-life policy of $30k-$50k would probably be reasonable. I currently have a policy for well more than that, but it's very inexpensive (~$1 per $1000 of coverage per year), and it's easier to just have it now so that when I have a family, I won't have to worry about suddenly getting it. Once you have a family, I've heard that you want to have a policy that will replace 5-10 times your annual salary, dependent on your family's situation--no kids, you can be on the lower end... kids nearing college, probably want to be on the higher end.
            Last edited by kork13; 12-19-2008, 03:00 AM.
            "Praestantia per minutus" ... "Acta non verba"

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              #7
              It may not be a popular opinion, but I don't think single people (and even many married people with no kids) need life insurance.

              I don't carry any and it always mystifies me when people insist I should. Why? DH doesn't depend on my income, we have no kids, and we have plenty of savings to cover the very cheap funeral I want.

              It always butters my buns when people talk about getting life insurance to cover your "final expenses". Funerals don't have to be costly, and even if one did want to throw a huge funeral, the decedant's savings should cover it and then some.

              If you have no dependents and you're in such dire financial straits that your savings wouldn't cover your own funeral, I think the money you would spend on premiums would be better added to a savings account.

              But that's just my opinion. People need to do what allows them to sleep at night.

              Comment


                #8
                Originally posted by genchan View Post
                I got a call at work yesterday from a guy trying to sell me life insurance. He kept telling me what a great investment it was. Is life insurance a good investment for someone who is single?
                1. Life insurance IS NOT an investment. Not for a single person. Not for a married person. Keep your insurance and your investments seperate.

                2. If there is nobody dependent on you for their support, what exactly would you be insuring? If you want to pick up a term policy for 10K to cover funeral expenses, I wouldn't argue with that. That would probably cost you a few dollars per month. Other than that, no, you don't need insurance.
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

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                  #9
                  Originally posted by genchan View Post
                  I got a call at work yesterday from a guy trying to sell me life insurance. He kept telling me what a great investment it was. Is life insurance a good investment for someone who is single?

                  NOOO!!!!!!


                  Not unless you are married with kids. Capesh!
                  Got debt?
                  www.mo-moneyman.com

                  Comment


                    #10
                    Originally posted by tripods68 View Post
                    Not unless you are married with kids.
                    I don't think there have to be kids involved. If a couple buys a house and needs both incomes to support it, that's a reason for both to carry insurance. Or if there are any debts that the surviving spouse would be responsible for or other expenses that the surviving spouse would have difficulty paying on his or her own.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #11
                      Ah, I see kork beat me to it. I also think everybody should have life insurance, if nothing else, to cover funeral costs.... However, if you have a separate arrangement to cover funeral expenses, then I certainly agree that there's no reason for a single person to have life insurance...

                      I have a very small policy from work (the smallest available), but it should be more than enough to cover funeral expenses if anything should happen to me. I don't remember the premium exactly, but it was also very small.

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                        #12
                        Does your employer offer term life as a benefit? Look carefully at your end of year statement or ask HR

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                          #13
                          Originally posted by snafu View Post
                          Does your employer offer term life as a benefit? Look carefully at your end of year statement or ask HR
                          Dunno who the question is directed towards exactly, but yeah, mine is term.

                          Comment


                            #14
                            Variable life insurance advice

                            Deleted to move
                            Last edited by maat55; 12-19-2008, 11:31 AM. Reason: Meant to create new thread

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                              #15
                              I'd buy life insurance if I was doing a bit more riskier work like construction. Then in the event I die, at least someone can try to soften the blow.

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