Singles
Life insurance can still be worth considering if you’re single, especially if other people depend on you financially, or you have debts, a mortgage, funeral costs or inheritance tax to think about.
People take out life insurance for all sorts of reasons. And you certainly don’t need to be part of a couple to have life insurance in place. If you have dependants, a mortgage or other debts, you could consider life insurance.
Life insurance can provide your loved ones with a lump sum when you pass away. They can use the money for anything, like paying off a mortgage, funeral costs or other debts. Some life insurance policies also include a terminal illness benefit, which may allow an advance payment of the policy proceeds if the policy terms are met. Check the specific features and conditions of any policy you are considering.
If your policy includes a terminal illness benefit and the policy conditions are met, you may receive an advanced payment which could be used to cover care costs or other expenses.
Life insurance for a single person can also be useful in later life if you’re worried about inheritance tax. Where appropriate trust arrangements are used, a life insurance policy may help provide funds to meet an inheritance tax liability without increasing the value of the estate for inheritance tax purposes. Tax treatment depends on individual circumstances and may change.
What types of life insurance for a single person are available?
The two main types of life insurance available in the UK are term life insurance and whole of life insurance. And you can take out both types of life insurance as a single person.
Term life insurance
Term life insurance covers you for a chosen number of years, which is called the ‘term’ of the policy. If you die within your chosen term, say 25 years, then your beneficiaries can receive a cash lump sum. If you die after the 25 years have expired, then they won’t receive anything.
There are three different types of term life insurance.
Decreasing term insurance.
The amount of cover decreases as you go through the term of the policy. This can make it cheaper to buy than level and increasing term insurance.
It’s often used to cover the cost of paying off a repayment mortgage. The insurance payout reduces over time. So, if you die five years into a 25 year plan, your loved ones will receive a larger payout than if you die 20 years into a 25 year plan. But as your debt should have reduced as well, the reduced payout will still help pay off your mortgage.
Level term insurance.
This insurance pays out a fixed amount for the duration of the policy. So, whether you die five or 20 years into a 25 year plan, your loved ones can receive the same amount. This type of insurance is useful for paying off an interest-only mortgage. Or providing for your children during the years they’re financially dependent on you.
Increasing term insurance.
This is where the cover amount rises each year at a fixed rate or in line with inflation. This helps your cover keep track of the cost of living.
Increasing term insurance is more expensive than level and decreasing term insurance. This is because the cover increases each year. But the advantage is the payout will often stretch further than the other types of term insurance.
Whole of life insurance
Whole of life insurance is designed to provide a payout whenever you die, provided premiums are maintained and policy terms are met. So, it offers cover for the whole of your life.
Unlike term insurance it doesn’t have an end date. Once the plan is set up and your premiums are up to date, it will pay out to your beneficiaries when you die, subject to meeting policy terms.
This type of insurance is often used to help pay an inheritance tax bill, so the cost doesn’t need to come out of your estate. Or some people use it to cover funeral costs.
Life insurance if you’re single with no dependants
While you might not have any financial dependants, there are still plenty of reasons to get life insurance as a single person.
If you die with an outstanding mortgage, the debt may need to be repaid from your estate. This could result in the property being sold, depending on the circumstances. This could lead to some difficult situations, for example, if you had someone living with you. If you have life insurance, the policy payout could provide money to pay off these debts.
Life insurance for a single person can pay for other things, too. For example:
- Your funeral, so your friends and relatives won’t have the financial burden
- Money for a charity you’d like to donate to
- A gift for a niece or nephew, or close friend
Life insurance for singles with dependants
If you’re a solo parent, life insurance can be helpful while your children are financially dependent on you. It means they can be supported if something unexpected happened to you. The money could be put in a trust, which would make sure your children receive financial support.
While you might not have a partner or children, you might have other people who depend on you financially. This could be a sibling who cannot work for themselves, or a parent who relies on you for income, for example.
Learn more: Life insurance for families explained
You might also consider getting your payout written into a trust. Inheritance tax rules can be complex and depend on individual circumstances. Where appropriate trust arrangements are used, life insurance proceeds may sit outside of the estate for inheritance tax purposes. Professional advice may be appropriate.
Learn more: Life insurance and inheritance tax explained
Why would life insurance for a single person be necessary?
Although you may be single you may still have financial responsibilities. For example, you may:
- be renting a property that has a long lease. If you die mid tenancy your estate may need to continue to pay the rent until the lease ends.
- have bought a property with a friend or sibling and want to make sure it doesn't need to be sold if you die.
- want to leave a legacy for family members who rely on your income.
- have children that you’re financially responsible for.
- be divorced and now need a single life policy.
- need to pay an inheritance tax bill.
- have debts that your savings won't cover if you die.
- wish to leave enough to pay for your funeral.
Can life insurance for a single person cover debt, final expenses, or funeral costs?
Debts that are in your name get paid out of your estate. This means that unless you have significant savings that can cover all your debts and pay for your funeral, your loved ones may not be left with as much as you think.
Some people who expect to have debts when they die take out life insurance to cover them.
Putting a policy in trust can help avoid delays associated with the estate administration process, although payment times will depend on the circumstances and completion of the claims process.
How does beneficiary selection work if you’re single?
A beneficiary can be anyone, and you can have more than one beneficiary. It doesn’t have to be your spouse or partner. It could be a child, grandchild, sibling, relative, or a close friend. You can even choose charitable organisations.
If you name a child as a life insurance beneficiary and die before they turn 18, they won't control the payout until they are an adult. A guardian or a trust will manage their money for then until they're 18.
It’s important to keep your beneficiaries’ details up to date. As your life changes, you may want to update who you have as a beneficiary. You can do this if you’ve name revocable beneficiaries.
How much life insurance for a single person is typically needed?
The cover you need will be personal to your circumstances. You should make sure the payout will cover all the costs your beneficiaries will be using it for, now and in the future.
Firstly, take a look at all your outgoings through the month and multiply by 12 to get an annual amount. Add on irregular costs, like holidays, events etc. to get a total annual figure. Then decide how many years you want the cover in place for. Include any outstanding mortgage as well. Add on any gifts to friends or family or donations to charity. This should give you a reasonable idea of how much cover you may need.
If you have savings or a death-in-service payment from your employer, you can deduct these amounts to reduce your cover if you think it’s sensible.
What factors determine coverage amounts in life insurance for a single person?
Things to think about include:
- Mortgage repayment
- Debt payments
- Replacing lost income
- Covering monthly bills and expenses
- Family lifestyle
- Paying for educational costs now and in the future
- Beneficiaries
- Funeral expenses
When should a single person consider buying life insurance?
Life insurance can be cheaper when you’re young. So having a policy in place as a young single person can be cost-effective over many years, as your premium is set at the time you took out the policy and doesn’t usually change as you age.
People tend to take out life insurance when they have something or someone they want to protect. So, for example:
- When you buy a property
- When you have a child
- When you become a carer for a relative
- When you start a business
- If you have few savings or take on debt
How is life insurance for a single person different from family or couples policies?
The life insurance policies themselves have the same end result in that they typically pay out when the policy owner dies. But they can be set up slightly differently. And the reasons for taking out the policy can vary.
For example, couples can take out a joint policy with their partner. So, when one partner dies, the other one automatically receives the life insurance payout. With a single life policy, you can choose who you want to receive the payout.
Family policies are designed to provide financial support for children until they’re adults or have finished further education. This is also possible with a single life policy as long as your children are named as your beneficiaries.
What are the pros and cons of buying life insurance while single?
Pros
- Pay off debts if you have few savings
- Protects guarantors on rent and loans
- Protects co-mortgagees
- Financial security for dependants
- Leave a legacy for beneficiaries
- Covers funeral costs
- Can be cheaper when young
- Can help pay an inheritance tax bill
Cons
- No real need if you don't have debt or dependants
- May be over insured if you have death-in-service cover as well
- Affordability - is the money better spent or saved elsewhere?
- You must pay premiums each month to keep the benefit going
- Life insurance has no cash-in value
Key takeaways
People take out life insurance for all sorts of reasons. And you certainly don’t need to be part of a couple to have life insurance in place. If you have dependants, a mortgage or other debts, you may want to consider life insurance.Life insurance for a single person can pay for other things, too. For example:
- Your funeral, so your friends and relatives won’t have the financial burden
- Money for a charity you’d like to donate to
- A gift for a niece or nephew, or close friend
The cover you need will be personal to your circumstances. You should make sure the payout will cover all the costs your beneficiaries will be using it for, now and in the future.
Vitality life insurance
Want to know more about life insurance or thinking about taking out a policy? Here are some of the benefits of taking out life insurance with Vitality:
- A brand you can trust - In 2024, we paid out 98.9% of all Life Cover claims.*
- Get a lower monthly premium upfront when you add Optimiser to your plan. Keep your premiums low when you stay active.
- Access to Vitality partner discounts and rewards.
- Get free no-obligation advice. Our advisers offer expert advice to help you make the right decisions.
You're not alone in choosing Vitality. Over 2 million lives in the UK are now covered by our insurance, and we’re here to support you too.
Ready to take the next step? Getting a quote is simple and takes just a few minutes.
*VitalityLife Claims and Shared Value Report 2025
