Here's a question that stumps a lot of single people: do I actually need life insurance if nobody depends on my income? It's a fair question. After all, the whole point of life insurance is replacing your income for people who rely on it, right? Well, mostly. But before you dismiss life insurance entirely, there are some scenarios where it makes a lot of sense—even if you don't have a spouse or kids.
The truth is, being single doesn't automatically mean you don't need coverage. It just means you need to think about it differently. Let's walk through when life insurance makes sense for single people, when you can skip it, and how to figure out what's right for your situation.
When Single People Actually Need Life Insurance
The biggest reason single people buy life insurance? Debt with a co-signer. If your parents co-signed your student loans or car loan, they're on the hook for that debt if something happens to you. That's not a burden you want to leave them. A life insurance policy that covers your outstanding debt means your co-signers won't be stuck making payments—or worse, having to liquidate assets to cover what you owe.
Even without co-signers, your debt doesn't just vanish. Credit card balances, car loans, personal loans, and private student loans (note: federal student loans are typically discharged at death) become claims against your estate. If you have assets—a house, a car, savings accounts—those can be seized to pay your debts. Life insurance ensures there's cash available to settle debts without forcing your family to sell your belongings or drain your accounts.
Then there are final expenses. Funerals aren't cheap—the average cost runs between $7,000 and $12,000, and that's before considering burial plots, headstones, or memorial services. Unless you have substantial savings earmarked for this, someone will need to foot that bill. A modest life insurance policy (even $25,000 to $50,000) ensures your family isn't scrambling to cover costs during an already difficult time.
Future Insurability: Locking in Your Health Today
Here's something most people don't think about: your health will probably change. If you're in your 20s or 30s and healthy now, great. But what happens if you develop diabetes, high blood pressure, or another chronic condition in five years? Those health changes can make life insurance significantly more expensive—or even impossible to get at standard rates.
Buying a policy while you're young and healthy locks in low rates. A healthy 25-year-old can get a 20-year term policy with $500,000 in coverage for $18-28 per month. That's less than most streaming subscriptions. And here's the kicker: even if you get married, have kids, or develop health issues down the road, your rate stays the same for the entire term. You're essentially betting on yourself staying healthy—and if you lose that bet, you're already covered.
This is especially relevant if you're planning to get married or have kids someday. By the time those life changes happen, you might be older or have developed health conditions that make insurance more expensive. Getting a small policy now—even if you don't strictly need it yet—can be a smart financial move.
When You Can Skip It
Now, let's be clear: not every single person needs life insurance. If you check all these boxes, you can probably skip it for now:
You have no debt, or only federal student loans (which are discharged at death). You have enough cash savings to cover funeral and final expenses—typically $10,000 to $15,000. Nobody co-signed loans for you, and you're not financially supporting parents, siblings, or anyone else. You have no plans to marry or have children in the foreseeable future.
If that describes you, congrats—you're in the minority of single people who genuinely don't need life insurance right now. But be honest with yourself. A 2024 study found that 42% of American adults say they need life insurance or need more coverage. Many single people fall into this gap, assuming they don't need it when they actually have financial obligations that would burden their loved ones.
How Much Coverage Do You Actually Need?
Single people typically need less coverage than those with dependents. A good starting formula: add up your debts, add $10,000-15,000 for final expenses, and round up slightly for wiggle room. So if you have $30,000 in student loans, $10,000 on a car loan, and want to cover funeral costs, you're looking at around $50,000 to $60,000 in coverage.
That said, some financial advisors recommend higher amounts—like $250,000 or $500,000—to provide flexibility for life changes and to lock in low rates while you're young. The cost difference between a $50,000 policy and a $500,000 policy when you're 25 might only be $10-15 per month. Given that you can't predict the future, the extra coverage can be worth it.
Term vs. Whole Life: What Single People Should Choose
For most single people, term life insurance is the way to go. It's straightforward: you pay a fixed premium for a set period (usually 10, 20, or 30 years), and if you die during that time, your beneficiaries get the death benefit. Term policies are cheap, especially when you're young. That $18-28 per month we mentioned? That's term insurance.
Whole life insurance, by contrast, is permanent coverage that builds cash value over time. It's significantly more expensive—often 10 to 15 times the cost of term insurance for the same death benefit. Unless you have very specific estate planning needs or are using life insurance as an investment vehicle, whole life probably doesn't make sense for single people. Your money is usually better spent on term insurance and investing the difference in a retirement account.
Getting Started: What to Do Next
If you've decided life insurance makes sense for you, here's how to move forward. First, calculate what you need to cover: outstanding debts, final expenses, and maybe a buffer for unexpected costs. Then, get quotes from multiple insurers. Rates can vary significantly between companies, and most offer free online quotes that take just a few minutes.
Look for a term length that matches your needs. If you're mostly worried about covering debt that you'll pay off in 10 years, a 10 or 15-year term might be plenty. If you're thinking about future family plans or long-term financial security, consider a 20 or 30-year term. Remember: 72% of people overestimate life insurance costs, often by three times or more. The reality is that basic term coverage is remarkably affordable, especially for young, healthy individuals.
Being single doesn't mean you don't need to think about life insurance—it just means you need to think about it differently. If you have debt, co-signers, or people who would be financially affected by your death, life insurance is a smart, affordable way to protect them. And even if you don't strictly need it today, locking in coverage while you're young and healthy can save you thousands down the road. Take a few minutes to run the numbers. You might be surprised at how little it costs to get real peace of mind.
