Should Singles Life Insure?

Are you single and ready to mingle? Want to have a conversation about life insurance? While the latter is agreeably less exciting, it’s nonetheless a vital topic. If you’re a SINK (Single Income No Kids), then life insurance may not be on your radar. We think it should.

The stated purpose for life insurance is to provide income for your dependents if you die before accumulating any wealth. Ideally, you care enough about your dependents to protect their standard of living once you and your income exit stage left. Ideally…that is. If you have no dependents (children or aging relatives), then is life insurance a moot point? Not so fast.

Consider the following:

  • People under the age of 65 are more likely to become disabled for 90 days than to experience premature death. The average disability lasts five years. SINKs may need to consider policies that cover short term disability that protect against an extended loss of income.
  • Everyone will have final expenses. Can you fund those expenses or will those expenses potentially present a burden to your surviving loved ones? To avoid having a Pass-The-Hat-Funeral, a small amount of insurance may be in order. The average funeral costs run $10,000-$15,000.
  • Your SINK status will likely change. First comes love, then comes marriage….then the baby carriage. You must consider that life insurance later in life may not be as easy or economical as you can purchase right now. Just a thought.

The only problem with depending solely on your employer provided plan, it is contingent upon you staying employed. Having a fully funded, 6-month emergency plan will supplement any employer provide insurance.

While SINKs are living la vida loca, you may also want to consider the following questions.

  • Have I designated someone to manage my affairs if I am disabled or exit stage left prematurely? Maybe that’s a parent. Maybe not. Does this person know where I keep my financial documents?
  • Do I have a will to direct my final wishes?
  • Are there any charitable donations that I’d like made on my behalf?

Are you a SINK? Have you given much thought to life insurance?

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