Do Single People Need Life Insurance?

Question: I am 27 years old, male, single but supporting my parents, do I need a life insurance?

Scenario # 1

Life insurance is an income continuation in case of untimely death.  Just think what will happen to your dependents just in case something happens to you.

Let’s assume that you are giving your parents PHP 10,000 a month, that’s PHP 120,000.00 per annum. If you were insured by PHP 1 million, then something happens, it will take them 83.33 months or 6.94 years to consume the money they got.  

This does not include final expenses.

Scenario #2

Let’s consider the final expenses:

Hospitalization:          300,000.00

Burial and Funeral:     300,000.00

Miscellaneous:           100,000.00

Total:                        700,000.00    

Insurance proceeds 1,000,000.00 

Less                         700,000.00 

Net Proceeds            300,000.00 

Taking into consideration that you give your parents PHP 10,000 a month. Let's compute how long the net proceeds will last.

Net Proceeds                              300,000.00 

Divided by Monthly Contribution   10,000.00

Equals                                                   30

This simply means the money will last for 30 more months or 2.5 years. 

Imagine if you were not insured, your loved ones will shoulder your medical and final expenses. Instead of leaving something valuable to them, you ended up being a burden instead.