Life Insurance for the Single Person
The primary intention of life insurance is to provide your loved ones with a secure financial future after your death. But if you are single, you may think you do not need to have coverage. There are different ways a single person can benefit from having life insurance. For instance, if you’re young and healthy, premium/insurance costs can be much less than for an older person, which could save you money in the long run.
While you might not think you need insurance as you have no dependents, even a funeral has costs that someone will need to pay for. A small life insurance policy could cover the final expenses associated with your funeral. You may also want to ask yourself, do you have debt? Student loans, a shared mortgage and/or a co-signed loan will need to be repaid even upon your death.
While term life insurance may be the least expensive up front, it’s also a temporary cost structure. Permanent – or cash value insurance – may be a bit higher in premium, but it’s a great way to start preparing for future financial needs by accumulating funds on an after-tax basis in a permanent insurance policy. Whole life, a fixed universal life or a variable universal life product are other options available to you. The accumulated cash value can be used in a number of ways: a down payment on a house or loan, retirement, college needs, or for emergency purposes. A single person may wind up caring for an aging parent. Future caregiver needs might be a thought, too.
Here are a couple of other ideas for a life insurance beneficiary if you have no dependents:
- Gift to a favorite charity
- Gift for a family member (niece/nephew/godchild) to help with their future financial needs, perhaps college education
Life insurance can help in many situations. Many of them, you may not have thought about. Being prepared for your future is key.
About the author: Melanie Tretheway has been in the life insurance business for over 30 years. She is a mother of two who loves baking, reading, gardening, and taking care of her family. Melanie takes great pride in making sure you are informed, especially when it comes to choosing the right life insurance policy for your family. You can contact Melanie at 1-800-651-1953 or MTretheway@Pivot.com.