Do Single People Need Life Insurance?
Many people assume life insurance is only for married couples and families, but that’s not the case. Even single people can benefit from life insurance. The good news is that you’ll likely pay lower premiums because there’s less to insure. Either way, though, you shouldn’t ignore the need to insure yourself.
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Keep reading to learn the top reasons why you should consider life insurance as a single person.
Pay Your Debts
We know, you don’t care who pays your debts once you’re gone, but what if it falls on your loved ones? Whoever you leave your estate to will have to manage the debts, figuring out what to pay off and who gets the remaining funds.
That’s a lot of pressure to put on your loved ones. Life insurance can help cover the debts, putting everyone’s mind at ease. With the debts covered, your executor can divvy up the estate according to your will without any stress or hassle.
Cover Your Co-Signed Debts
If a relative or close friend co-signed a debt for you, they are responsible for it. If you die, the financial burden falls on the co-signer. Rather than putting your family or friends in a sticky situation, have life insurance that covers at least as much as your portion of the loan. This way your co-signer doesn’t have to pony up the money upon your death.
Cover Your Business
Do you own a business with someone else? If you die, the business will be on his or her shoulders. Even if you set it up so that one partner keeps the business open upon the other’s passing, they probably can’t do so without the necessary funds. If you both contribute to the business, your partner will rely on your life insurance funds to cover your portion of the business in order to keep it open.
Cover Your Loved Ones
Even though you aren’t married, other people may count on you. Do you live with a boyfriend/girlfriend? Do you have aging parents or support anyone else in your life? Your life insurance proceeds can help your loved ones live the life they are used to living with you in it. You don’t have to get enough insurance to set these people up for life, but carrying enough coverage to pay them some money to get them through the tough times can help.
Pay for Your Final Expenses
Someone has to pay for your funeral and burial. That someone could be you if you carry enough life insurance. Talk to your life insurance agent about the cost of final expenses in your area and choose accordingly. Even if you carry insurance specifically to cover your final expenses and nothing else, it takes the burden off your loved ones.
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It May Pay for Your Illness
If you become chronically ill, you may be able to ‘accelerate’ your benefits. Accelerating your life insurance gives you access to your proceeds while you are still alive. While this does decrease the payoutyour loved ones will receive upon your death, it helps you cover your medical bills while you are still here.
You’ll Get Lower Premiums Now
If you secure life insurance now, even before you’re married or have kids, you’ll likely have lower premiums. Insurance rates increase as you age. The older you get, the more likely it becomes that the insurance company will have a claim (you have to die someday). Locking in your rates early in life helps you save money. You can sign up for a term insurance policy that covers you for a specific term, say 30 years. If you are still alive upon expiration, the insurance ends. If you die before the expiration, though, your loved ones get the payout.
Your Employer’s Insurance Isn’t Enough
Many people assume they have enough coverage from their employers. While group life insurance is often cheaper than individual life insurance, most employers only give a small amount of coverage. Don’t assume your employer provides enough coverage – read the fine print and decide if it’s adequate.
Marriage isn’t a requirement for life insurance. Anyone can buy it and it often makes sense to do so. If nothing else, it gives you peace of mind knowing that your loved ones won’t be left with a huge financial burden upon your passing.
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