Do I Need Life Insurance if I am Single?

Do I Need Life Insurance if I am Single?

Life insurance is usually seen as being a way to protect those who are dependent on you, namely your spouse and children. Yet life insurance can in fact help you protect any number of your loved ones, as well as your assets. In this guide, we will take a look at the reasons why you may want to take out a life insurance policy even if you do not have a significant other, and how it can benefit you and your loved ones.

1. If you have debt

• Many of us in Zambia get into some form of debt to keep up with life, especially when we find ourselves saying that the cost of living is high when in fact the level of income is rather low (don't kill me for this one). For some, this is occasional, but others use debt as part of their financial strategy to survive.
• Do you currently have debts in excess of your assets or do you owe money together with someone else? Perhaps you're a joint debtor with your brother on his mortgage. If you died, he'd be responsible for the entire debt. Would he be able to make the monthly payments on his own? A life insurance policy naming him as your beneficiary could give him enough funds to cover your share of the mortgage, or perhaps to pay off the entire debt.

2. If you have financial dependents who aren't biological children

• We know how life is in Zambia, the extended-family factor. This is something which we know is very common in our society. Taking care of our family members is part of us, no matter the situation; we just seem to offer that helping hand when called upon (Probably someone, after reading this, has just asked "which we?"). This can include either the elderly or children.
• If you have any family members who rely on you for financial support, then you may want to consider life insurance. If you've named them as beneficiaries, the policy payout could help them pay for things such as health care and daily living expenses if you were no longer around. Learn some tips on how you can plan for such unexpected times here, for reference only.
• Having a will with directives is also imperative in this case, so you'll want to speak to a lawyer.

3. If you have business partners

• ?If you plan to start a business and grow your company through business loans, for example, you're probably going to need life insurance first. You'll also need to list your lender as one of the beneficiaries on your life insurance policy, to help ensure your loan will be paid off even in the case of your death.
• If you've started a business with a partner, your untimely death could set back your enterprise. Not only could they be without your skills and vision, but your death could also hurt the financial structure of your business.
• Life insurance coverage could smooth things out and give your partner some time to make decisions that are best for the future of your business. With that in mind, you should also consider creating a plan for your company if each of you were no longer around. Find out how much money would be needed to overcome the challenges that a partner's death would create.
• Whether single or not, do you and your current business partner(s) have such a plan in place? Kindly look into it mwebantu. Businesses in Zambia need to continue beyond the death of a business owner/partner.

4. If you want to leave a legacy

• Most people want to make an impact on the world, whether it’s through our families, in our day-to-day interactions with others, or something that will help those less fortunate even after we’re gone. The proceeds of a life insurance policy can help serve as a financial legacy to those you leave behind.

Whether life insurance is worth it depends on your situation

Single or not, chances are that you may identify with at least one of the situations above. And if you’re still unsure about your need for coverage, don't worry, just get in touch and I'll be happy to have a chat with you.

Life has a way of changing. Fast. By understanding the scenarios that would necessitate coverage, you’ll be better prepared for whatever comes next. It’s a great and better feeling to have. Nimi'uzani!

About Luyako Nsamba

Luyako Nsamba is a full-time wealth management consultant, with a focus on life insurance, education financing, investments & retirement planning. You can also follow him for tips on your favourite platform: Facebook, Twitter, Instagram, YouTube, and TikTok.

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