Guide
Life insurance for single people
Find out if you need life insurance if you’re single, and what kinds of policies might be right for you.
Life insurance pays out a sum of money to your loved ones when you pass away, and the money can be used for anything. People often think of life insurance as a product for married people or those with children. But life insurance for single-person households is also common and has benefits.
While you might be single today, in the future you could meet someone to share your life with. You might then want to leave some money behind for them if something unexpected happened to you. This is also the case if you have children or invest in property.
Life insurance policies are cheaper the younger you are. So, by getting life insurance now, you could lock in a lower price.
While you might not have any financial dependents, there are still plenty of reasons to get life insurance as a single person.
If you’ve got a mortgage but pass away before clearing it, the lender would claim back the equity in the property. This might mean your assets would be sold. This could lead to some difficult situations, for example, if you had someone living with you. If you have life insurance, the policy payout would provide money to pay off these debts.
Life insurance for single people can pay for other things, too. For example:
If you’re a solo parent, life insurance is worth considering. It means your children would be supported if something unexpected happened to you. The money could be put in a trust, and you’d know your children would receive financial support. Our life insurance for parents’ guide explains how this works in more detail.
While you might not have a partner or children, you might have other people who depend on you financially. This could be a sibling who cannot work for themselves, or a parent who relies on you for income, for example.
You might also want to think about getting your payout written into a trust. UK inheritance laws mean that any inheritance over £325,000 will be taxed (HM Revenue and Customs). But if your policy payout goes into trust, it won’t count towards the inheritance threshold. Speak to a financial adviser for more information on this.
Does a single person need life insurance?
Deciding if you need life insurance ultimately depends on your circumstances.While you might be single today, in the future you could meet someone to share your life with. You might then want to leave some money behind for them if something unexpected happened to you. This is also the case if you have children or invest in property.
Life insurance policies are cheaper the younger you are. So, by getting life insurance now, you could lock in a lower price.
Do I need life insurance if I’m single with no dependents?
While you might not have any financial dependents, there are still plenty of reasons to get life insurance as a single person. If you’ve got a mortgage but pass away before clearing it, the lender would claim back the equity in the property. This might mean your assets would be sold. This could lead to some difficult situations, for example, if you had someone living with you. If you have life insurance, the policy payout would provide money to pay off these debts.
Life insurance for single people can pay for other things, too. For example:
- Your funeral. This means friends and relatives won’t have the financial burden
- Money for a charity you’d like to leave money to
- A gift for a niece or nephew, or close friend.
Life insurance for singles with dependents
If you’re a solo parent, life insurance is worth considering. It means your children would be supported if something unexpected happened to you. The money could be put in a trust, and you’d know your children would receive financial support. Our life insurance for parents’ guide explains how this works in more detail. While you might not have a partner or children, you might have other people who depend on you financially. This could be a sibling who cannot work for themselves, or a parent who relies on you for income, for example.
You might also want to think about getting your payout written into a trust. UK inheritance laws mean that any inheritance over £325,000 will be taxed (HM Revenue and Customs). But if your policy payout goes into trust, it won’t count towards the inheritance threshold. Speak to a financial adviser for more information on this.
Types of life insurance for single people
Getting life insurance if you’re single is much the same as if you’re in a relationship or have children. You can choose between different policies:
- Term life insurance. You select the number of years you want the cover for. The insurer pays out if you pass away in that time. This kind of life insurance tends to be cheaper than whole of life insurance.
- Whole of life insurance. If you keep paying your premiums, you’re covered for your whole life. This type of policy tends to cost a little more than term life insurance.
- Decreasing life insurance. This is often used to cover a mortgage. The payout (and premiums) decline over time as you pay off your mortgage. This is a great option if you’re wanting to cover something specific. Read more in our mortgage protection insurance guide.
The benefits of life insurance for single people
Life insurance for a single person provides many benefits:- Peace of mind that anyone who depends on you financially will be protected
- You’ll get a sense of security from knowing your affairs are ‘in order’
- There will be money to pay for your funeral and to clear any debts you have, so your loved ones won’t have to worry about this.
Relevant guides and articles
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Income protection insurance guide
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Income protection insurance covers your monthly income if you get ill or injured and can’t work. Find out all you need to know in our comprehensive guide.
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First-time home buyer insurance guide
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If you've just bought your first property, life insurance could help keep your loved ones protected. Find out how life insurance works for first-time buyers, here.
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Life insurance beneficiaries guide
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What is a life insurance beneficiary? Find out everything you need to know about beneficiaries, putting life insurance into a trust, and more, in this guide.
