Do I need life insurance if I'm single with no children?

Think about the important people in your life. It's possible there's someone you'd want to help financially after you're gone. It could be an ageing parent, a sibling or other family members.

It's also worth considering your potential debts and future costs that others may be responsible for covering in your absence. For example:-

• Credit card debt: Your debts don't disappear when you do. Your debt becomes a liability on your estate, which can make it trickier to pass on your home to any loved ones.
• Mortgage or rent: If you have a co-signer (someone in your life who pledged responsibility for repaying your loan if you were unable to do so), or if you want to leave your home to another person, life insurance can help cover these expenses. It can also help pay for ongoing rent until your tenancy ends.
  

Funeral and estate planning

Life insurance could ensure that the people you leave behind aren’t left worried about these costs:-

• Burial and memorial services: Funeral expenses can add up quickly, from a coffin, burial plot or urn, to the funeral service and memorial.
• Inheritance tax (IHT): There may be tax liabilities on your estate that your assets may not immediately cover, bearing in mind that IHT is due 6 months after death, with interest payable after that date.

Leave something behind or support a cause 

Life insurance isn't just about leaving something behind for your loved ones. You could leave a gift or support a cause that's important to you:-

• Charity: You could list a charity or a cause close to your heart as a beneficiary, to leave a lasting impact.
• Building inheritance: You could leave a financial legacy for your nieces, nephews or any other family members.

Life insurance premiums tend to be lower when you're young and healthy. Buying a policy early could make the monthly payments more affordable now, than if you waited a few years.

If you place your life insurance policy under trust, you can still list your partner as a beneficiary, even if you're not married.

While life insurance may not seem necessary for singles with no children, it could provide a safety net for some of your financial responsibilities, end-of-life costs, and help towards any expected – or unexpected – life events. Life is full of surprises, and having a life insurance policy could help you face them with confidence, no matter your current family status.

There are several products that you could consider. These include:

• Term life insurance – which provides life cover for a set period of time, i.e. a 10 year term or to a certain age, i.e. age 65. This can be taken on a level, decreasing or increasing basis.
• Whole of Life Insurance – which provides life cover which will continue until you die, as long as you continue with your premiums.

The options available will vary from provider to provider. These type of products do not have any cash-in value, and cover will end if you stop paying your premiums. Other products not discussed in this article but that you may want to consider are critical illness and income protection.

We offer two different types of life cover with our Life Insurance Plan:

1. Level cover – You choose a lump sum to leave behind for your loved ones and select how long you want your cover to run for. You’ll pay the same amount of premium for this cover each month until your policy ends. If you pass away during this period, the lump sum will be paid in full. 
   Over time, inflation will affect the value of your lump sum. You can choose to have your cover amount increase in line with inflation. This will cause your monthly payments to rise, but ensures your lump sum won't be worth less in the future because of the rise in the cost of living. 
2. Decreasing cover – You choose to cover only what you need, both the amount and duration of the loan. This cover can be helpful if you have a mortgage. If the policyholder dies, the benefit amount could be enough to repay the mortgage or loan– and, as the cover amount reduces over time, premiums tend to be lower than for level or increasing term insurance. Premiums also stay the same. If you don't have a mortgage, the money could also be used to help cover living expenses.

Keep in mind that you'll only be covered whilst your regular premiums are being paid. If your payments stop, then so will your cover. There is no cash-in value at any time.

If you need more help picking the right life insurance policy, you could speak to a financial adviser. If you don't have a financial adviser, you can find one at unbiased.co.uk. Please be aware that you may need to pay for this advice.