Are you single and think you do not need life insurance? If you do indeed think that, then this is a post you may want to read and take notice of. Life insurance is not just for married people or people with children. Life insurance can and may be right for a younger single individual as well. As with all life insurance, the situation is unique to each person and their unique situation. So read this post and seek a qualified life insurance agent to help you decide if you do or do not need a policy. And even if you do not think you need a life insurance policy you may decide it is something that can be obtained and for the correct reasons.
In an age when people are buying houses later in life and getting married at an older age, many young people are not thinking of their life insurance needs. But now just may be the best time to consider buying life insurance due to the following five reasons. But before we get into the five reasons that a single person may need life insurance let’s first look at what primarily drives someone to buy life insurance. In most instances, a person will buy life insurance when they get married, buy a house, have children, or are in a situation where they may be caring for an aging parent. While these are all worthy reasons to get life insurance, there are instances where you can and should buy a policy prior to one of these events occurring. Also, many younger people are relying on group term policies that they have through their employers but this policy will end if you leave your job. And that potentially leaves you in a position where you may not be insured for one reason or another.
The first reason a single person would want to but a life insurance policy is due to the fact a 30-year term policy is very reasonable for someone who is healthy and in their twenties. But before you go out a policy you need to make sure you have established an emergency fund and have adequate savings funds in a liquid account. By a liquid account I mean a savings account where the funds may be accessed in the event of an emergency without any negative consequences such as early withdrawal fees as you would incur with a certificate of deposit.
As an example of why someone would get a policy in their early thirties as compared to their mid-forties, we will use a simple example. A healthy 30-year-old who does not smoke can get a $500,000 30 year term policy for about $35 a month, and the same policy for a 45-year-old will cost about $60 a month. While this may not seem all that significant but over a 30-year period by buying a policy at 30, it will save you about $9,000 over the lifetime of a 30-year term policy. And the chances of someone getting a chronic illness is increased with advancing age.
By getting the policy when you are young, you ensure you are getting the best rate possible for yourself and coverage for any potential needs that you may or may not be aware of in your life. As an example, I was single and had a group term policy and last year I canceled the group policy through my employer and got a 20-year term policy through a private insurance carrier. While the policy does cost me a little bit more than my old group term policy that policy saw a decreasing death benefit while experiencing increasing premiums. Hence why I went out and got a 20-year level term with a guaranteed death benefit that was higher than my group term policy. And now I am married to my beautiful wife, and I am now really glad I have such a good policy in place for not only myself but now my wife. It just goes to show you that no matter what your situation is now it can always change in the future.
If you have a loan or mortgage that has a family member or friend who has co-signed you do need life insurance no matter what just to protect your co-signor. Due to the nature of a loan that has a co-signor that means that they will be left on the hook in the event of your passing. And that is not a position you would want to leave anyone in now would you? If this situation sounds familiar and you are in this position, you need to ensure you have a policy that will cover your debts that you share with someone else.
Now if you support others, you will also need a policy no matter if you are single or not. Most people simply think of life insurance for those with a family such as a spouse or children. But that is not the only reason or the only people that may rely on you. If you are planning on or in the process of caring for older aging parents, you need to consider a life insurance policy to help care for them in the event you are no longer there to do so.
If you are single and are the owner of a business or a partner in a business a life insurance policy can help ensure that your company will live on after you have passed. If you own the business outright, a life insurance policy can enable your company to survive after you have passed with minimal effort by your family. If you own the business as a partner a life insurance policy can set up a buy-sell agreement for your other partners in the event you pass and your family has no interest in running or owning your company going forward.
And the fifth and final reason a single person would want or need a life insurance policy is to leave a legacy after you pass. If you have enough saved for emergencies, all debt and final expenses you can leave a legacy for your family or charity. The possibilities are endless provided you have taken care of the things you need to before you pass.
Life insurance is not for everyone but if you have people that depend on you, it is essential that you are protected, and you leave those you love protected as well. It is always important for you to consult a professional prior to making any major financial decisions such as buying life insurance. While not always necessary for single people as you can see life insurance does have a place if the need exists.
If you have any questions or need any advice with regards to life insurance, do not hesitate to contact me.
