People often think that life insurance is only for old, married couples. While life insurance helps when someone dies, even single people need to think about the costs of their passing and how it will affect those around them. But if you’re single, you may be wondering: who do I list as my beneficiary? There may be more options than you may think.
When trying to choose who you may list as your beneficiary when signing up for life insurance while single, it helps to look at your life, those who are in it, and the things that you love. You may not have a spouse but there are still bound to be important people and things that comprise your everyday life and will inherently be impacted by your passing – so how can you help them? And who might qualify to be your beneficiary?
Look at Your Loans
Life often comes with big expenses, especially when it comes to things like schooling, housing and transportation. Many people take out loans when they go to college, take out a mortgage or buy a car, but has anyone co-signed on any of your loans? If someone has, then you may want to list them as a beneficiary. Not only will they benefit from your life insurance funds, but they can also clear any debt left behind on the loan you co-signed with them. Should you pass on and your loan is not fully paid, the other person on the loan will be left with the remaining debt, so this is something incredibly important to consider.
Who Might Pay For Your Funeral?
You may go about choosing your beneficiary by thinking of who would be in charge of your funeral. Funeral costs can run quite high, so you wouldn’t want to leave this person without the means to put you to rest. Consider those closest to you but also think of how and where you might want to be buried. Who would want to take on this responsibility and who would honor your final wishes? You will want to choose someone close that you can trust who would honor the opportunity to finalize your affairs and out you to rest.
Does Anyone Depend on You?
Even if you have no spouse or children, you still have your own parents and other family members. Do any of them rely on you? If you care for a sick family member, or even a friend, you can list them as a beneficiary so that they are taken care of even after you are gone. These funds can help get them the care that they need so that they are not alone. Since it’s your money, you’ll still be taking care of them, even if you are physically gone, and that will mean the world to them.
Look at Your Passions
Plenty of people spend their time volunteering, helping causes, or participating in churches and educational programs. Do you have any passions that could benefit from a donation? Maybe you love art and would like to donate money to an art school, or perhaps you want to fund an aspiring artistic student in your community. If you love animals you can help support a shelter. If you are part of a religious community, you can list them as your beneficiary so that they can use your funds to host more programs or volunteer at more events. Look at the things in your life that give you pleasure – even if you pass away, you might still be able to make a huge difference in someone’s life or by supporting a cause.