U.S. News and World Report recently reported that even though single people do not have the same dependents to protect in the event of their death, the demographic is still investing in life insurance policies. While the current economic climate is pushing many consumers to buy less life insurance, younger single consumers continue to purchase life insurance policies due to life-changing events or concern for older relatives' well-being.
According to the news source, getting married, having children or buying a home can lead a single person to invest in life insurance. In addition, this demographic is often responsible for an older or disabled relative, and life insurance will ensure the dependent is taken care of. Greg Blake, executive director at USAA's life insurance company, told the news source that 20-somethings have learned a lesson from the recession.
"A lot of millennials have seen their parents and grandparents struggling in retirement, and they're taking a lot of steps to prepare for financial security and prevent those problems for themselves," Blake said.
While not every single person may need life insurance, for many it can provide some financial security to a loved one, charity or other recipient if the insurance holder were to die. In an interview with Daily Finance, Vicki Brackens, senior financial planner with Brackens Financial Solutions Network and MetLife, said there are very few people in the single population that would have no benefit from purchasing life insurance.
"It could be that rare person who is not attached to anyone or anything, and they don't care about their legacy," Brackens said. "But for a variety of reasons it's a good tool for everyone else."