For some, this makes sense. Marriage and children definitely increase the number of people dependent on your income. However, even if you’re young and single, there may be circumstances in which your death could financially hurt your friends or family members – and other reasons to sign up for life insurance.
You have significant financial obligations
Today, many start their adult lives with a significant amount of debt (example - student loan). If you die, your guarantor will be burdened with the loan. Credit card debt works in a similar way. A life insurance policy for at least the amount of your debt or loan will protect co-signers if you can no longer make payments.
Family members depend on you
Regardless if you live with your family members, they may depend on you to get by. Perhaps one of your parents is elderly or handicapped and needs you to do their shopping or chores. Or maybe you’re helping a sibling through school. If you were to die, they’d still need help – but might not have the means to pay for it. A life insurance pay-out could defray bills for in-home care or educational costs.
You’re worried about funeral costs
Funerals are expensive. In 2014, the national median cost was RM20,000. If you’re worried that that expense would be unmanageable for your friends and family members, and you’re not prepared to set money aside yourself, you might consider a small life insurance policy.
You own a business
Much of your personal net worth might be invested in your company, and if you have business partners and employees, the situation is even more complicated. It’s best to consult with a lawyer for details, but a life insurance policy could allow your co-owners or employees to buy out your portion
of the business – or take other necessary action – if they couldn’t otherwise afford it.
What’s the next step?
For some singles, doing without life insurance is perfectly fine. Keep in mind, though, that buying a policy when you’re young is significantly less expensive.
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