Do I need life insurance if I'm single?

Key takeaways

• Life insurance can be suitable for single people if they have children, support other family members, have joint debts with someone else, or own a business with someone else

• Life insurance can also provide a lump sum to help with funeral costs or to leave money to charity

• If you are single and don’t have children, there may be more suitable protections policies than life insurance

What is life insurance?

Life insurance is a contract between you and an insurance provider. You pay a regular monthly premium, and in return, the company promises to pay a lump sum of money—called a death benefit—to your chosen beneficiaries if you pass away while the policy is active.

What are the benefits of buying life insurance?

Life insurance for single people isn’t always necessary, but it can be a good option in the following circumstances.

Do I need life insurance if I am single?

A single person may not need life insurance if they have no dependents and few financial obligations. If you don’t have children, a spouse, or others relying on your income, a policy might not be necessary.

In this case, the main purpose of life insurance—providing financial protection for others—doesn’t apply, and you could buy more a more suitable protection policy such as critical illness cover or income protection.

It’s always worth reviewing your situation periodically, as circumstances can change over time. If you later marry or cohabit, you might decide to buy joint life insurance with your spouse.

How are my debts passed on when I die?

In the UK, when someone dies, their debts don’t automatically disappear—they are generally paid out of their estate (the total value of their assets, including property, savings, and investments) before anything is passed on to heirs.

Beneficiaries do not inherit debts. Creditors can only claim from the policyholder’s estate, not from the beneficiaries personally (unless they were joint account holders or guarantors).

Student debts are treated differently. If you die in the UK, your student loan is cancelled, and the debt is written off. No one else is responsible for paying it, and it will not be passed to your family or estate. To have the loan cancelled, your beneficiaries will need to contact the Student Loans Company and provide a copy of your death certificate.

Which types of life insurance are suitable for single people?

Term life insurance

This is a cost-effective and straightforward choice. It provides cover for a specific period, such as 10, 20, or 30 years. It's a sensible option for those seeking short-term financial security without a hefty price tag. You can choose between decreasing term (where the payout reduces over time, often matching a repayment mortgage) or level term (where the payout stays the same throughout the policy).

Some people match the policy term of their life insurance to their repayment mortgage. For example, if you had 20 years left on your mortgage, a 20-year life insurance term would ensure your mortgage was repaid on your death. This would mean you could pass the property in full to your beneficiaries.

Whole of life insurance

Unlike term insurance, whole life cover lasts for the insured's entire lifespan. It offers peace of mind and a cash value component that grows over time. This can be particularly beneficial for those who might want to access funds later in life, perhaps for retirement or unforeseen expenses.

Choosing the right type of life insurance as a single person depends on understanding your long-term financial goals and current life situation. Whether it’s safeguarding any dependents, covering potential debts, or simply ensuring your peace of mind, the right policy can make all the difference.

How do I buy life insurance?

Calculating the right life insurance cover and term involves assessing your financial obligations, future plans, and the needs of any dependents.

Start by totalling debts, living expenses, and future costs like university fees or mortgage repayments to determine the amount of cover, then choose a suitable type of policy.

MoneySuperMarket’s life insurance calculator can help you calculate how much cover you need.

Premiums typically rise with age, so a 25-year-old might pay a fraction of what a 45-year-old would for the same level of cover

Underwriting factors—such as your health, lifestyle, occupation, and family medical history—also influence costs and whether you’re accepted. Getting a tailored quote based on these factors ensures you select a policy that offers adequate protection at a price you can afford.

It can be useful to speak to a financial adviser about the different types of life insurance and the monthly payments you can afford.

Application process

Once you’ve chosen a policy, you’ll complete an application form detailing your personal information, medical history, lifestyle, whether you’re a smoker or non-smoker, and any risky activities or occupations.

You will need to complete a medical or health screening - this will involve answering a series of questions. The insurer uses this information to assess risk and determine your premium. But there is rarely the need for a medical exam.

Once approved, you’ll receive the policy documents, and your cover begins once the first payment is made. It’s important to provide accurate information, as any omissions or false statements could affect claims in the future.

What other types of protection policy should I consider?

For a single person, other protection policies may be better options than life insurance. For example, critical illness cover pays out a lump sum if you’re diagnosed with a serious condition such as cancer, heart attack, or stroke, helping cover medical costs or lost income.

Income protection insurance provides a regular payment if you’re unable to work due to illness or injury, ensuring you can cover your living costs.

Additionally, private health insurance can reduce waiting times for treatment and protect your savings from unexpected medical expenses. These policies focus on protecting you while you’re alive, which may be more immediately beneficial for singles without dependents.