What Insurance Do I Actually Need If I’m Single?

If you’re single, your insurance needs look different than someone whose household has two incomes. And if you’re the only person bringing in a paycheck, protecting that income may matter a whole lot more than you realize. In this episode of She’s Talkin’ Money, I’m walking through the insurance benefits you probably selected during open enrollment years ago — and helping you figure out what you actually have, what you may need more of, and what you might be paying for without really understanding why. We start with disability insurance, because for many single women, their ability to earn an income for the next 20 or 30 years may be one of their biggest financial assets. I’ll explain how short-term and long-term disability coverage works, what percentage of your income may actually be replaced, why benefit caps matter for higher earners, and why the definition of “disabled” inside your policy can completely change whether you receive benefits. We’ll also get into how to read the insurance deductions on your paycheck, when employer-provided coverage may not be enough, why relying entirely on insurance tied to your job can create problems if you leave or start a business, and whether a single woman actually needs life insurance. I’ll also explain when life insurance does make sense even if you don’t have children, why supplemental life, accident, critical illness, and other add-on policies deserve a second look, and why your beneficiary designations may matter more than what your will says. If open enrollment is coming up, don’t automatically click “same as last year.” Take a few minutes to understand what you’re actually paying for — and whether the coverage would really protect you if your paycheck suddenly stopped. Talkin’ Points → where your money gets smarter. Real talk, practical tips, zero guilt straight to your inbox. Sign up here. Be sure to like and follow the show on your favorite podcast app! Keep the conversation going on Instagram @shestalkinmoney Shari Rash is a financial planner and Investment Adviser Representative of GWA Wealth, a Registered Investment Adviser. The information provided in this podcast is for educational and informational purposes only and should not be construed as personalized investment, tax, or legal advice. Listening to this podcast does not create an advisory relationship with Shari Rash or GWA Wealth. All investments involve risk, including the potential loss of principal. Any references to specific investments, strategies, or securities are for illustrative purposes only and are not recommendations. You should consult your own financial advisor, tax professional, or attorney regarding your individual situation before making any financial decisions. Learn more about your ad choices. Visit megaphone.fm/adchoices

• 0:01Speaker 00

  This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up require compatibility and availability varies 18 plus.

• 0:26Speaker 01

  They're running a cover two defense, but you're running to get game day deals on Uber Eats. Keep everyone at tonight's watch party fed with deals from your go-to restaurants, or stock up with deals on your favorite snacks and groceries. Whatever the occasion, get game day deals on Uber Eats all season long. It's not football without food. Uber Eats, order now. Terms apply. Product availability varies by region. See app for details.

• 0:57Speaker 02

  This episode is brought to you by State Farm. Football has a play for just about everything. You can go deep, keep it on the ground, or draw up something nobody sees coming. And whether you want to run a flea flicker or the tush push, you need a plan to fit your unique situation. That's why State Farm takes the time to get to know you, so they can help personalize coverage for your life and budget. Now that's a solid game plan. Like a good neighbor, State Farm is there.

• 1:25Speaker 03

  If you couldn't work for a year, how much would your disability insurance actually pay you? Not roughly, I want to know the actual number. If you have no idea and you're like, what disability insurance? You're in very good company. Most of the women I work with don't know either. They checked a box during open enrollment years ago and haven't thought about it since. And if you're single, that matters more than you probably realize. When you're the only income in your household, there's no second paycheck coming in if yours stops. Your income is the whole plan. So today, we're answering a question I get a lot.

• 2:07Speaker 03

  What insurance do I actually need if I'm single? We'll talk about what to keep, what you're probably overpaying for, and the one type of coverage most single women are missing. And if open enrollment is coming up at work, please listen to this before you click, same as last year.

• 2:35Speaker 03

  Welcome to She's Talkin Money. I'm Shari, financial planner, founder of GWA Wealth. And after 20 years in personal finance, I've seen firsthand how often women are given bad, generic, one-size-fits-all financial advice. This show is for women who are doing well on paper, but still have questions about what to do next with their money. So first, let's start with your pay stub. When a client brings me her insurance questions, I don't start with the policies, I start with her pay stub. That is where the truth lies. So pull up your most recent pay stub. Seriously, pause this episode, go get it.

• 3:19Speaker 03

  I'll be right here once you hit play again. And look at the deductions and anything labeled as a benefit. Here's what you're likely to see in plain English, because insurance companies aren't great at that. First is basic life insurance. This is the life insurance your employer gives you for free. It's often a flat amount, like $50,000 or one or two times your salary. Then you may see supplemental life insurance, sometimes called voluntary or optional life. This is the extra life insurance you buy through work on top of the free coverage, and it comes out of your paycheck.

• 4:00Speaker 03

  And then we have ADND, or accidental death and dismemberment. This pays only if you die or are seriously injured in an accident. So this is not for an illness, this is an accident, and it's often bundled in with your free life insurance. Then we have short-term disability. This replaces part of your paycheck if you can't work for a shorter stretch, usually a few weeks to a few months. Short-term disability also kicks in during maternity leave. Then we have long-term disability. This replaces part of your paycheck if you're out longer. It usually starts after the short term runs out,

• 4:44Speaker 03

  and long-term disability can pay for years. You might also see accident, critical illness, cancer, or hospital policies. These pay you a set amount of cash if one specific thing happens, like a broken bone or a cancer diagnosis. Now, sort what you find into two piles. What your employer gives you for free, and what you're paying for out of your own paycheck. Here's my rule of thumb. Take the free coverage, always. If your employer is giving you life or disability insurance at no cost, there's really no reason to turn it down. The coverage you're paying for is where I want you to slow down. Not because it's always bad,

• 5:28Speaker 03

  but because most people never actually decide to buy it. They check the box because it's right there, it seems responsible, and the cost per paycheck looks manageable. Then it renews every year and no one questions it again. A few dollars a paycheck does not feel like much, but over a year and then over 10 years, you can be spending thousands on coverage you don't need or paying more than you would somewhere else. And while you're looking, check whether you're enrolled in long-term disability at all. A lot of people skipped it years ago because it was optional and they didn't think they'd ever use it, right? Who actually ever wants to think

• 6:11Speaker 03

  they're going to be in a long-term disability type situation? When I look at a single woman's insurance, disability is usually the gap. And it makes sense that it gets overlooked. Life insurance is easy to understand. Disability insurance feels abstract and maybe difficult, or like, I won't be in a position to need this, or even if I get injured, I can still do my job. So maybe people also assume that they're just covered and they move on. But let's think about what your biggest financial asset actually is right now. And I'll give you a hint. It's not your house, it's not your 401K,

• 6:56Speaker 03

  it's your ability to earn income for the next 20 to 25 years. If you're making $150,000 a year, that's millions of dollars in future paychecks. Disability insurance is what protects that. And when you're single, nobody else's paycheck is covering the mortgage or the rent while you recover. It's all up to you. So here's the problem. Most people have no idea how their disability coverage actually works. So let's walk through the three things you need to know. First, how long you wait. Disability insurance doesn't start paying the day something happens. There is a waiting period,

• 7:37Speaker 03

  which seems like really annoying, just as a concept. So short-term disability usually kicks in after a week or two and pays for a few months. Long-term disability usually starts after 90 days, sometimes 180, or once your short-term coverage runs out. So that means you need cash to get you through that gap. There's one more reason your emergency fund matters. A lot of long-term disability plans pay until age 65 or until your social security retirement age, but not all of them. Some plans only pay for a few years. If you had a serious illness at 42

• 8:18Speaker 03

  and your coverage ran out at 47, it's a very different situation. So make sure to check out your long-term disability. A lot of group plans replace about 60% of your salary, not 100%. There's often a monthly cap on top of that. And check whether your plan counts your bonus or commissions. Some plans only count your base salary. If a big part of your pay is bonus, your coverage can be a lot smaller than you think. Here's something else to look out for. How your plan defines disabled. This sounds like the fine print, and it kind of is, but it matters. Some plans pay if you can't do your own job.

• 9:02Speaker 03

  Others, typically after the first couple of years, only keep paying if you can't do any job. That switch is one of the most common points where insurers cut off benefits. So it's worth knowing which definition your plan uses.

• 9:21Speaker 03

  So let's talk about what this looks like in real life. When people picture disability, they may picture a car accident. But most of the time, it's not an accident at all. It's an illness, cancer, a back problem, a heart issue, a complicated pregnancy. These things happen to regular people with regular jobs. So here are a few examples, because each one shows you a different part of your coverage. And stick with me, because we're going to be talking about other insurances as well. I just wanted to start with disability, because I think this one is rarely talked about. The surgeon who breaks her foot. She can't stand in an operating room for eight weeks. This is a short-term disability situation.

• 10:05Speaker 03

  Long-term disability probably never kicks in because she's back before that 90-day waiting period is up. So the question for her is, does she have short-term coverage and enough cash to bridge the gap until it starts paying? Or how about the corporate attorney diagnosed with breast cancer? She's 44 years old, makes $250,000 a year, and is going to be out for most of the year with surgery and treatment. Short-term disability covers the first few months, then long-term takes over. But remember our math. Her plan caps out at $10,000 a month. It's taxable, and her bonus might not count at all. She's still paying her mortgage and her bills

• 10:50Speaker 03

  plus medical costs on a fraction of her income. Or what about the hairstylist who develops arthritis in her hands? She can't cut hair anymore, but she could work a front desk or manage a salon. If her policy covers her own job, she's disabled. If it covers any job, the insurer could say, you can still work, benefits denied. Same diagnosis, completely different outcome, depending on one line in the policy.

• 11:22Speaker 03

  I don't know about you, but when a friend recommends a podcast to me, I'm way more likely to actually go and listen to it. So if someone comes to mind while you're listening to this, text her this episode. That's one of the easiest ways to help more women find She's Talkin Money, and I'd really appreciate it. And if you've got a money question you'd love for me to answer on the show, send it my way. I'm doing a Make It Make Sense episode in the next few weeks, and I'd rather answer your real questions than guess at them. Email me at shari@shes talking money.com or DM me on Instagram. First names only, we're totally anonymous. It's your call.

• 12:03Speaker 03

  So when to get your own disability policy? Here's my issue with relying only on your employer for insurance. And this applies to disability and life insurance, potentially long-term care insurance if your employer offers that. That coverage only lasts as long as the job does. If you leave, get laid off, or decide to start your own thing, that coverage may be gone, or it may cost a lot more to keep. And here's the part people don't think about. If your health changes while you're covered through work, you might not be able to buy a policy on your own later. Or you can, but it's super expensive. You don't get to choose when your health changes,

• 12:48Speaker 03

  but you can choose when you lock in coverage. That's why I discourage clients from being completely dependent on their employer for insurance. So when would I look at an individual policy on top of what you get at work? When your income is high enough that the monthly cap shortchanges you. That's the $250,000 example that we just walked through.

• 13:16Speaker 03

  What when a big chunk of your pay is bonus or commission that your group plan doesn't count? When you're thinking about consulting or starting a business someday, even if it's years away? When your health is good right now and you want to lock that in while you can? If you're thinking about going out on your own, here's the most important thing I'll say. Get the policy while you still have the W2. Insurers usually want to see about two years of self-employment income before they'll cover you. A brand-new business does not have that yet. So if you quit first and shop later, you could be stuck without coverage right when you're taking the biggest risk of your career.

• 14:00Speaker 03

  And here's something a lot of women don't know. Individual disability policies often cost more for women than for men. Insurers price it that way because statistically, women file more disability claims. All the more reason to shop carefully and compare quotes. The flip side? Women usually pay less for life insurance because we tend to live longer. So we win some, we lose some. Okay, so do you need life insurance if you're single? This is the question I get asked the most when it comes to insurance. So let's get to the answer. Short answer? Maybe not that much insurance. And I know that surprises people because we've been told forever

• 14:45Speaker 03

  that life insurance is just something responsible adults have. But here's how I think about it. Life insurance isn't about leaving money behind. It's about protecting someone who would be hurt financially if you died. If you're married with kids, that's obvious. Your income is paying for their lives. But if you're single with no kids and nobody depends on your income, you probably don't need a lot of life insurance beyond what your employer gives you for free. There's nobody whose life falls apart financially without your paycheck.

• 15:21Speaker 00

  This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration blog, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required. Compatibility and availability varies 18 plus.

• 15:47Speaker 03

  What you're probably thinking, well, Shari, what if I own a house? Or I have debt? That's a very common question and something a lot of people worry about. But generally, your estate will pay your debts. If you die with a mortgage, the house can be sold to pay it off. Your family usually isn't personally on the hook for your debts. So owning a home doesn't automatically mean you need life insurance. When does my answer change to yes? As a single woman, you do need life insurance. When you support someone. An aging parent you send money to every month. A partner, a sibling, a niece or nephew you're helping through school. If that support would disappear because you're no longer here, life insurance can replace it.

• 16:33Speaker 03

  You may also need life insurance when someone shares a debt with you. If you co-signed a loan or own a home with someone else, they could be stuck with that payment on their own. When you want to leave a specific gift to a person or charity on purpose, life insurance can be an efficient way to do that. What about when kids might be in the picture later? If you think you might have children or adopt children someday, it can make sense to lock in coverage now while you're young and healthy.

• 17:05Speaker 03

  Life insurance could also make sense when you don't have much cash. If your money is mostly tied up in retirement accounts or your home, you might want enough life insurance to cover final expenses so nobody else has to front the money.

• 17:22Speaker 03

  Now let's look at what you could be overpaying for. So let's go back to those deductions on your pay stub because this is where I see a lot of people quietly overpaying. The big one is supplemental life insurance through work. That's the extra coverage you pay on top of what your employer gives you. Why am I skeptical of this supplemental life insurance? A few reasons. First, group insurance usually doesn't check your health much, if at all. That sounds like a perk, and for some people it is. The fact that you don't have to get a health exam in order to qualify for the insurance. But it also means the insurer is pricing that coverage for a group

• 18:06Speaker 03

  that includes people with health issues. So if you're healthy, you may be paying more than you would if you went out and bought a policy on your own where your good health and younger age actually get you a better rate. Second, the price usually goes up as you get older. Group plans offer you often use age brackets. So every time you move into the next one, your premium jumps. A term policy you buy on your own can lock in your rate for 20 or 30 years. That's not necessarily true when you're buying supplemental insurance through your employer. Third, it's tied to your job. Some plans let you keep it when you leave,

• 18:51Speaker 03

  but usually only if you act within about a month. Then the price keeps going up as you age. Same goes for those smaller add-ons like accident or cancer policies. They only pay if one specific thing happens. That doesn't make them useless, but you should know exactly what you're buying and whether your emergency fund or your health insurance already covers that risk. And there's two very important exceptions to everything I just said. If you have health issues, that group coverage might actually be the best deal you can get precisely because no one's checking your health. In that case, keep it. If you're replacing work coverage with your own policy,

• 19:36Speaker 03

  do not cancel the work coverage until your new policy is approved and active. Otherwise, you could end up with a gap or with no coverage at all if you end up not being approved. So last thing, and this one's easy to overlook. Go look at who you've named as the beneficiary on your life insurance and your retirement accounts. A lot of single women will list their sister. And when I ask why, the answer is, I'm closest with her, she could use the money, and I really didn't know who else to put down. And that might be exactly the right answer. Your sister might be the person you want to have that money. But make it a decision, not a default.

• 20:18Speaker 03

  So ask yourself, who do I actually want this to go to and why? Maybe it's a niece or nephew whose education you care about. Maybe it's a friend who's been there for you. Maybe it's a charity that matters to you. And also check to make sure someone is listed in general. You'd be surprised how often that box is blank. If nobody's listed, that money usually goes to your estate and through probate, which is slow, expensive, and public. Not the gift you meant to leave. And also, it may end up going to your brother that you haven't spoken to in five years because this state decides who is closest to this person, who is next of kin.

• 21:02Speaker 03

  That is who should receive their assets. Also, something important to recognize, your beneficiary designations usually override your will. So even if you have a will that says one thing, the name on that form is what usually decides where that account goes. So take five minutes and make sure it says what you want. So let me tell you a story real quick. I have a client and she contacted me and she said, "I can't believe this. My ex died and I am a beneficiary on their account. I'm named in their will and I'm named on their retirement accounts." And she felt really weird about it.

• 21:45Speaker 03

  And I'm like, "Well, when did you break up?" "Years ago. Years ago, we broke up. I cannot believe they didn't take my name off. Like, why am I still listed as their beneficiary?" And she felt really weird about it because she's like, "I, yeah, were we friendly? Like, it wasn't a bad breakup, but should I be receiving their money over their parents or their sibling? And my client wasn't receiving all their ex's assets, but they were receiving a significant amount." And then it's like, it creates a whole weird scenario of like, "What do I do with this money? I don't deserve it.

• 22:28Speaker 03

  Did they even mean to still leave it to me? And was this back from when we were dating and they just never changed it?" There's just, there's a lot to think about with that. So if you are putting someone as a beneficiary, that, that maybe they're going to be really surprised that they're your beneficiary. You may want to give them a heads up and say, "Hey, these are my wishes. These are my intentions, so just go with it."

• 22:56Speaker 03

  So that's something. And also explain it to your family, like, "Hey, here's who my beneficiaries are. These are my wishes. So if, God forbid, something were to happen to me, this is what I wanted, so please don't second guess it or make it like a thing."

• 23:12Speaker 03

  But also, really, say, say her ex just forgot to change his beneficiaries. Well, he left money to his ex because that's what his documents say. So you want to make sure you view those beneficiaries every so often. As your life changes, people come in and out of your life, your beneficiary designation should appropriately reflect that. So take a few minutes. It's not a big deal to change your beneficiaries, review them, just to make it easier and communicate it with your loved ones. Communicate what your wishes are, so there's no second guessing. So if you're thinking about leaving your job to consult or start a small business,

• 23:55Speaker 03

  this is exactly the kind of planning I help women with before they make the leap. Insurance, cash, retirement accounts, all of it. You can learn more about working with me at GWawealth.com. Here's what I want you to do this week. I want you to look at the insurance you actually have. Don't just pick the default option at open enrollment because that's what you've always done or because you didn't know there was anything else to consider. Take the free coverage, check your disability, how long you'd wait, how long it pays and how much. Question the extras you're paying for and know who your beneficiary is and why. Insurance is one of those things you never think about until you need it.

• 24:39Speaker 03

  No one ever says, "I so regret buying that insurance." And one of the best things is if you pay for insurance and never need to use it, right? That means we're not getting injured, we're not getting sick. You know, we're staying healthy, we're staying alive. So the goal is to make sure that when you need insurance, it actually does what you think it does. And if this was helpful, helpful, text it to a friend who's staring at her own open enrollment emails right now.

• 25:14Speaker 03

  GWawealth is a registered investment advisor. This content is educational and not individualized advice. Thank you so much for joining me. Again, if you have a question that you'd like me to cover in our next few weeks, please send me an email at [email protected] or send me a DM. Thanks so much for joining me and I'll see you next time.

• 25:49Speaker 01

  They're running a Cover 2 defense, but you're running to get game day deals on Uber Eats. Keep everyone at tonight's watch party fed with deals from your go-to restaurants or stock up with deals on your favorite snacks and groceries. Whatever the occasion, get game day deals on Uber Eats all season long. It's not football without food. Uber Eats, order now. Terms apply. Product availability varies by region. See app for details.

• 26:20Speaker 02

  This episode is brought to you by State Farm. Football has a play for just about everything. You can go deep, keep it on the ground, or draw up something nobody sees coming. And whether you want to run a flea flicker or the tush push, you need a plan to fit your unique situation. That's why State Farm takes the time to get to know you so they can help personalize coverage for your life and budget. Now that's a solid game plan. Like a good neighbor, State Farm is there.