Should Single People Buy Life Insurance? Here’s What Dave Ramsey Thinks

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Single people need to read this advice.  

Many people buy life insurance after they find a romantic partner to share their life with or after they have a child. And this makes a lot of sense.

A death benefit from a life insurance policy can help a surviving spouse or partner pay shared bills and maintain the same standard of living they had when there were two earners in the family. It can also help provide for surviving children as raising kids is expensive.

But what about those who are not married? Is it worth buying a policy? Making this decision can seem more complicated, but this advice from finance expert Dave Ramsey could help.

Dave Ramsey’s life insurance advice for single people

For those who are single, Ramsey indicates that deciding whether to buy life insurance needs to be done on a case-by-case basis. Some single people will need coverage, while others may not.

“If you’re single as a pringle and ready to mingle, that doesn’t mean you’re off the hook when it comes to life insurance,” Ramsey said. “It also doesn’t mean you’re on the hook.”

Ramsey advises single people to buy a policy if they eventually plan to get married or start a family — even if they are currently not in a committed relationship. It makes sense to do this because they’ll need the policy when they move into the next phase of life and it can be less expensive to just buy it ASAP.

“The younger you are when you get the policy the cheaper it will be,” Ramsey explained. “If you think you’ll likely get married within the next five years and start a family, it could save you some cash to get a 20-year policy now.”

Ramsey also said it could be important to buy a policy as a single person in order to make sure money is available for funeral expenses. This way, loved ones won’t be left footing the bill.

However, those who don’t anticipate having anyone depending on them may not need a policy. “If you love the bachelor lifestyle (aka your lawn chair counts as ‘furniture’) and plan on keeping it that way for a long time, this is an area you could save money on,” Ramsey said.

Is Ramsey right?

Ramsey is spot on about the situations when single people should purchase life insurance. Not only is it cheaper to buy a policy at a younger age for anyone who plans to start a family soon, but it could also be important to ensure coverage is available.

Many life insurers deny coverage or charge a lot of money for people with pre-existing conditions, and no one can predict when a medical problem will develop. It can be better to get coverage while young and healthy in anticipation of a future family rather than delaying and risking a medical condition developing in the meantime.

Ultimately, the reality is a term life insurance policy is pretty inexpensive and singles who don’t want to burden family members with burial expenses or who want to make sure future loved ones are cared for should follow Ramsey’s advice and get covered ASAP.

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