Life insurance is one of those things that you don’t realize the importance of until it’s too late. When your family is dealing with the economic turmoil of the death of a loved one, the need for insurance is easily apparent.
But what if you’re single and don’t have children? Do you still need life insurance?
The smart financial answer is yes, and here’s why.
6 Facts That Prove Even Single People Need Life Insurance
1. Someone will have to pay for your funeral:
Whether you plan to be cremated or have the bare minimum of frills, someone will have to shoulder the costs of your burial.
To keep your friends and family from dealing with this expense, a simple term insurance policy with death benefits will cover the basic funeral charges.
2. If you owe money, the debt may not disappear when you die:
If your assets aren’t enough to cover your debts or you are a joint debtor with another person, your creditors can go after family members to recoup their loss.
With a life insurance policy with a payout that covers your debts, the beneficiary could be your shared debtor. The policy would then ensure he or she can pay off your debt.
3. Life insurance is a tax write-off:
Premiums paid towards life insurance can be used as write-offs on your taxable income. Because of this, life insurance is often used as a tax savings investment for single people.
4. Get it while you’re healthy:
When it comes to life insurance, the younger and healthier you are when you sign up, the cheaper your premiums will be.
Locking in a rate when you’re in good health ensures that you keep your policy the length of the contract. By the time you realize you need it, you may have health issues that keep you from being able to obtain life insurance at a reasonable rate, if at all.
5. You may not be single forever:
The statistics show that most people will end up in a significant relationship at some point. So, your odds of being single until you die, no matter how you feel about it now, are actually quite low.
However, by the time you are in the position of your life where you have a relationship and a family, lots of other expenses will take priority over life insurance. When you get the policy while you’re single, you already have coverage to take care of your family later, at a much lower rate.
6. You have other loved ones you’d like to bequeath:
A beneficiary to life insurance can be anyone you have a relationship with. Your siblings, cousins, friends or neighbor can benefit from your life insurance policy.
If you’d like to leave behind a small legacy in the form of a payout to someone you care about, term life insurance is the perfect way to do so.
Single and Financially Smart – What a Combination!
Taking out life insurance while you’re single isn’t a requirement, but it is a savvy financial choice. Sign up for a policy before you need it and it’s too late!