If you are unmarried and have no children, you may think you don't need to invest in life insurance. But being single doesn't mean your death would have no financial impact on others. Therefore, there are several practical reasons why buying life insurance when you are single makes sense.

Since life insurance gets more expensive the older you get, you save money when you buy a policy when you're young. Life insurance companies generally consider you less of a liability the younger and healthier you are when you buy a policy. Although life insurance premiums are reasonably affordable when you are young and healthy, the rates increase if you have health problems later on.

If you plan to have children one day, life insurance is cheaper when you're younger than if you wait until you become a parent. The younger you are when you take out a policy, the better the rates you'll get. Life insurance companies take your health seriously; therefore, the cheapest rates go to individuals who are in good health - a reason not to postpone buying life insurance until later.

Lower rates for the length of the policy is another perk of buying life insurance when you are young. The same amount of insurance coverage will cost you more as the birthdays accumulate and you become more likely to develop health issues.

Secure Dependents

If you have a child as a single, life insurance becomes especially important. You'll want to make sure that any dependents are financially cared for should you die prematurely. You may even want to have life insurance coverage already in place before you have a child. That way, you'll know you are insurable.

Dependents don't necessarily include only children. If you are a single who is helping to support aging parents who can't make ends meet in retirement or who have serious medical issues, life insurance can provide for them, too.

Maybe you help support a sibling who is disabled or has special needs. What would happen to that person if you suddenly die? It only makes sense to have life insurance if anyone in your life relies on you for financial support.

Life insurance can continue to give any individuals you help support adequate income to live on when they no longer have your working income. Even if your employer offers life insurance as a benefit, the coverage you get may not be adequate. You also will lose the coverage if you leave that employer or get laid off.

Debt Payoffs

Besides seeing to the financial needs of dependents you leave behind, life insurance helps pay for funeral expenses and any debts, including a home mortgage, you owe when you die. With the average cost of a funeral totaling about $7,400, you'll want to make sure the expense is covered. Otherwise, you may be leaving loved ones with a financial burden they can't afford.

Debts don't always die with you. For example, if a friend, parent, or other relative cosigned a student loan, personal loan, auto loan, or mortgage loan for you, that person becomes responsible for repaying the balance of the debt should you die.

Even if you are debt-free, term life insurance costs just a few dollars a month. For a small premium, you'll be entitling a beneficiary to a death benefit that will help pay your end of life expenses, including burial, final income taxes, and other taxes owed.

If you're wondering whether you should include life insurance premiums as part of your household budget, the agents at American Quality Assurance Group can discuss the advantages of a life insurance policy with you. Call us today.