If you are an unmarried, childless individual, you may think that you don’t have much need for life insurance. However, just like married couples, parents, caregivers, and business owners, single people need life insurance to protect their financial interests and the financial interests of those who care for them. Consider the following:
Life insurance can pay for your funeral and/or burial costs.
Final expenses are just that, expenses – and the money to pay for them has to come from somewhere. Instead of waiting for funds from your estate to become available, a life insurance payout can be used immediately after your death to cover these costs. This can protect your family members from having to spend their own money on your funeral and burial expenses, which can amount to over $10,000 in today’s money (or a whopping $40,000 in 40 years, assuming a 3.5% average annual rate of inflation). A life insurance benefit can cover the cost of the final services that you would prefer without leaving your loved ones in the red. Note that if you are a veteran, there may be burial benefits available to your loved ones, but they only cover a small fraction of the actual memorial service and burial cost, even if you are buried in a VA cemetery.
Life insurance can help pay off your debts.
Depending on their nature, your debts may not be discharged by your death. Credit cards and private student loans are not forgiven upon death and must be repaid by your estate. Vehicles and properties that are owned jointly will transfer to the co-owner and any payments that are owed must continue to be made. Instead of saddling family members with your debts or waiting for collectors to come calling for your estate assets, a life insurance death benefit can be used to make immediate debt payments and extra proceeds can help co-owners continue making vehicle and mortgage payments until they decide what they want to do with the assets.
Life insurance can provide financial security to your siblings, parents, or other extended family members.
Regardless of whether you are married or have children, there may still be individuals who rely on your income or your care. A life insurance policy can help ensure that their financial needs are met and that their care continues even after your death. If you provide income to aging parents or help pay for a caregiver to care for your grandparents, consider how their needs would be met without you. Designating those you care for as the beneficiaries of your life insurance policy will help them maintain their standard of living or their needed care should you pass away.
Life insurance is easier and less expensive to obtain when you are young.
Medically underwritten life insurance is usually less expensive and available in much larger amounts than guaranteed issue life insurance alternatives. If you have a family history of illness, but you’re currently healthy, you are more likely to medically qualify for coverage now than if you become ill in the future. Even if you do qualify for coverage later in life or after developing an illness, you may have to pay more in premiums. Further, since individual life insurance is priced based on remaining life expectancy, premiums are least expensive when you’re young. Purchasing a policy now provides you the best chance of locking in the lowest premium pricing and ensures that you have coverage if you develop an illness in the future. Permanent coverage, specifically, may also be able to be used to cover the costs associated with a chronic illness or custodial care (so long as you purchase a policy with those features) – providing you with a financial back-up plan, just in case.
Life insurance can protect your business.
Often, small business lenders require applicants to purchase life insurance to ensure repayment of a small business loan. Even if your business is debt-free, if you run it jointly with someone else, life insurance can protect your interests in the business after your death. Life insurance benefits can give your partner(s) the ability to pay off business debts, hire your replacement, or simply keep the business running until they determine the right way forward. If the surviving partners want to sell the business, but market conditions after your death are unfavorable, life insurance can buy time for the value and marketability of the company to improve.
Life insurance allows you to leave a legacy.
If there is a cause that is dear to your heart – be it ensuring that your alma mater has money to provide students with financial aid or that your church can complete renovations – you can use a life insurance policy to leave a donation to that cause after your death. Life insurance can also be used to make life a little easier for those you love, like your parents or your siblings, even if you don’t act as a caregiver to them now.
Life insurance isn’t just for married couples and parents. If your death would have any sort of adverse financial impact on those you love, you can use life insurance to protect their financial futures. Call 888-300-9331 to speak with a representative about your life insurance needs or get a quote today.