As a single person, do I really need life insurance to pay for my funeral costs or debts?

If you're single, you may need life insurance for a variety of reasons. However, the old industry sales pitch that you need insurance to pay for your funeral and retire your debts if you die prematurely is not among them. According to Get a Financial Life (Simon & Schuster), "Your parents, other relatives, or friends will probably be willing to pay for your funeral in the unlikely event you die with no assets. As for your debts, unless you cosigned a loan with parents, partners, or friends, no one else will be responsible for paying them. If you have any assets, the creditors will sell them to pay your debts. Otherwise, the creditors will simply take the loss."

Return to Questions