If you are single, then you probably think life insurance isn’t right for you. In some cases, you may be right. Most people get insurance to reduce their financial burden on their spouse and children when they die. However, some singles can benefit from life insurance even if they don’t have children. Here are a few instances when single people would benefit from life insurance.
You Share Debt
If you have a cosigner on your loans or you share a debt in any other way, then you should have life insurance. This includes your parents cosigning on your private student loans. Unlike federal loans, private loans are not discharged after your death. That other person will be on the hook for the entire loan should you die.
You Want to Safeguard Your Estate
Payments for most private or commercial loans are taken out of your estate before anything goes to your heirs. This could include the sale of assets or repossession of items with a balance owed. If you had plans to pass down anything specific to your heirs, then that may not happen. Life insurance is an excellent way to cover some of these debts so your heirs don’t have to.
You Want to Finance Your Funeral
Funerals are expensive and a burden to family members. Even simple cremation or burial fees cost money. If you die without a funeral plan, then your friends and family may be unable to give you the funeral they want. Life insurance can reduce or eliminate these costs.
You Support Other People
If anyone relies on your support or will rely on your support in the future, then you should have life insurance. For example, say you have a disabled sibling currently supported by your parents and your plan is to take over your sibling’s care after your parents die. Life insurance can provide for that sibling should you pass away before anyone else. You can even put your parents or step-children on your policy if you support them as well.
You Own a Business
If you need a small business loan, then you will likely be required to buy life insurance. The lender is listed as a beneficiary to the policy. Likewise, also consider life insurance if you have a business partner. That way, they won’t be burdened with the full weight of a loan or business costs if you pass away.
You Live With Other People
Even if you’re not married to your life partner, you may want to have life insurance to protect them. When you pass away, they will incur the added expense of a mortgage, rent, and other expenses you two used to split. With life insurance, they will be able to cover these expenses until they can manage on their own.
You Are Young and Healthy
The best time to get life insurance is when you’re young, healthy, and in less need of it. The younger and healthier you are, the lower your premiums. Plus, you will be able to demonstrate your insurability. This means your premiums are likely to remain on the lower side as you age.
Even if you don’t plan on marriage or kids, you may change your mind later. You can usually make changes to your policy at any time in your life. If you wait until you’re older, then your premiums may be much higher than if you had started when you are young.
Most singles fall into at least one of the categories above. If you are one of them, then you should consider life insurance. Also, some types of life insurance offer benefits you can use while you are alive. If you need help choosing a life insurance policy or any other type of insurance, contact Kenneth Rhodes & Associates Inc for help. We can go over life insurance plans and help you pick the one that works best for you.