Life insurance for single people

Life insurance pays out a sum of money to your loved ones when you pass away, and the money can be used for anything. People often think of life insurance as a product for married people or those with children. But life insurance for single-person households is also common and has benefits. 

Does a single person need life insurance?

Deciding if you need life insurance ultimately depends on your circumstances. 

While you might be single today, in the future you could meet someone to share your life with. You might then want to leave some money behind for them if something unexpected happened to you. This is also the case if you have children or invest in property. 

Life insurance policies are cheaper the younger you are. So, by getting life insurance now, you could lock in a lower price. 

Do I need life insurance if I’m single with no dependents?

While you might not have any financial dependents, there are still plenty of reasons to get life insurance as a single person. 

If you’ve got a mortgage but pass away before clearing it, the lender would claim back the equity in the property. This might mean your assets would be sold. This could lead to some difficult situations, for example, if you had someone living with you. If you have life insurance, the policy payout would provide money to pay off these debts. 

Life insurance for single people can pay for other things, too. For example:

• Your funeral. This means friends and relatives won’t have the financial burden
• Money for a charity you’d like to leave money to
• A gift for a niece or nephew, or close friend.

Life insurance for singles with dependents

If you’re a solo parent, life insurance is worth considering. It means your children would be supported if something unexpected happened to you. The money could be put in a trust, and you’d know your children would receive financial support.

While you might not have a partner or children, you might have other people who depend on you financially. This could be a sibling who cannot work for themselves, or a parent who relies on you for income, for example.

Learn more: Life insurance for parents explained

You might also want to think about getting your payout written into a trust. UK inheritance laws mean that any inheritance over £325,000 will be taxed (HM Revenue and Customs). But if your policy payout goes into trust, it won’t count towards the inheritance threshold. Speak to a financial adviser for more information on this.

Learn more: Life insurance and trust explained

The benefits of life insurance for single people

Life insurance for a single person provides many benefits:

• Peace of mind that anyone who depends on you financially will be protected
• You’ll get a sense of security from knowing your affairs are ‘in order’
• There will be money to pay for your funeral and to clear any debts you have, so your loved ones won’t have to worry about this.

Learn more: Is it worth having life insurance? 

Last updated: 15 October 2024

*Vitality Claims and Benefits Report, 2024