Recently, I was asked, “What insurance do singles need?” The answer is simple you need health insurance, disability insurance, dental insurance, vision insurance, and a small amount of term life insurance.
The need for health insurance should be obvious. We are human and we get sick. Having health insurance gives you the peace of mind of being able to go to the doctor when you’re sick; and having your prescriptions filled and all you have to pay is the co-pay. It covers hospital stays, surgeries, etc.
You might wonder why do I need disability insurance. Well, let’s say you are single, in great health, and you are working. If you get injured and are unable to work in your current field or are completely disabled and cannot work at all, you definitely will need the insurance to pay your expenses. Often the best place to purchase the disability insurance is from your employer (if they offer it) or from a union, job-related group, etc.
As to dental insurance, you need it because you need your teeth cleaned, cavities filled, root canals, etc. Have you gone to the dentist lately without insurance and been hit by an unexpected bill? It’s better to have it than to end-up dipping into the emergency fund to cover the cost.
What if you have 20/20 vision, do you still need vision insurance? This one is a little harder, but personally, I’d say yes. As you get older, your body starts to break down. The muscles in your eyes become weaker and all of a sudden, you find that you are no longer able to see as clearly as before. You make an appointment with the eye doctor. The doctor conducts the exam and tells you, “You need glasses.” Have you priced glasses lately? I have, they run upwards of $200. The last pair I just got cost $969.00 without insurance. Since I have vision insurance, I only paid $268. I am older, so I need progressive bifocals. These are very expensive.
Term life insurance in a small amount is necessary to help your loved ones pay for your funeral expenses. If you die young, you don’t want your family, maybe your mother and father, having to worry about how to pay for the funeral or cremation. If you have that policy in place, they can use that money to pay those expenses. What you don’t want to do is prepay funeral expenses. You are just wasting your money.