"Single person life insurance can be a good idea even if no one is financially dependent on you. If you want to make sure your family don't have to worry about covering your mortgage payments or funeral costs, it's worth considering getting covered. The younger you are, the cheaper it could be too. So if you're planning on getting married and having children at some point, you could save money by getting a policy beforehand."
What are the benefits of life insurance for single people?
Protection for your children. If you have children, a single person life insurance policy can provide peace of mind that they're financially protected if you die. You can leave money for their everyday expenses, university fees or even driving lessons.
Financial help for family and friends. It's not just children who could get a payout from life insurance. You can name any family member or friend who's financially dependent on you as a beneficiary. This could be an elderly parent, friend, business partner, or even someone who has acted as a guarantor on a loan for you.
Paying off a mortgage. A life insurance policy can cover the remaining amount on an outstanding mortgage, allowing you to leave your property to a family member or friend. If you don't have a policy in place, your mortgage provider may try and collect the remaining money from your estate. This could mean having to sell the property if there's not enough money to cover the costs.
Cover for funeral costs. Funerals can be expensive, costing an average of £3,953 according to the SunLife 2023 Cost of Dying report. A life insurance policy can cover these costs so your family doesn't have to.
Potential cost savings. Life insurance costs are generally lower when you get a policy at a younger age, as you're less likely to make a claim.
What types of life insurance can I get?
Level term life insurance
You choose how much cover you need and the duration of the policy. For example, you could get cover to last until your youngest child turns 18 or finishes university. If you die during the policy term, a fixed sum is paid out to cover expenses such as mortgage payments. The amount paid out remains the same no matter how far into the policy term you are. On average, level term life insurance costs £261 a month.
This type of policy is intended to last for the whole of the policyholder's lifetime, making it one of the more expensive options. It pays out if you die at any point during the policy, with the more money going to any named beneficiaries. They can use this money to cover debts, funeral costs or have as a gift.
Decreasing life insurance
Also known as mortgage life insurance, a decreasing life insurance policy covers any remaining mortgage payments after you die. This means that the amount paid out decreases as you pay more off your mortgage. Decreasing life insurance policies normally last between 20 and 25 years, as this is a typical mortgage term. Mortgage life insurance costs £191 per month, on average.
1Based on Confused.com data June - August 2023. Prices based on average quote offered on a policy with a 25-year term and £100,000 of cover.
What our life insurance expert says
What other types of life insurance are there?
is individual cover that pays out when the policyholder dies.
pays out an amount that decreases over time, usually in line with your mortgage
pays out a lump sum if you're diagnosed with an illness covered by your policy
covers your bills if you're injured or ill and are unable to work. Short term policies and longer ones available
covers the cost of private medical care, helping you avoid NHS waiting lists to get the cover you need, quickly
Life insurance guides
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