If you should be single and childless, chances are you have skipped buying life insurance. But you might want to think again. Scratch below the outer lining, and you'll see that life insurance often can be as valuable for singles as it is for people with spouses and children. Life insurance ensures that the folks you care about will soon be provided for financially, even if you're not there to look after them yourself.
Listed below are five reasoned explanations why singles might consider buying life insurance.
Listed below are five reasoned explanations why singles might consider buying life insurance.
- You've debt. While it's true that many of one's debt expires whenever you do, that's not necessarily the case. Many parents co-sign loans and will be left with this debt if something happened to you. She thinks singles have an obligation to be sure this doesn't happen. A life insurance policy provides parents with money to cover off the debt. Your parents protect you. Now it's time to protect them if something happened. Your heirs don't have any legal responsibility for many of one's debt, such as that linked to charge cards or a mortgage. Still that debt likely will soon be subtracted from any amount that heirs receive from your own estate. A life insurance policy might help pay off this debt which means that your heirs have more of the cash you've earmarked for them. Life insurance may also help loved ones pay for your funeral. The price of a funeral is very good today $10,000 to $20,000. Even though you won't have heirs, many singles still may consider life insurance to cover their debts. They believe they have a moral obligation to stay their estates.
- You possess a business. Singles who own small businesses may be so close to business partners that they see them included in the extended family. When you have this kind of relationship with your business partners, you probably care about their future and the longevity of the business enterprise you'd be leaving behind. For the single individual who can be a business owner, life insurance may help ensure the continuity of the business. For example you and your partners could buy a “key person” insurance policy on your life. This sort of policy gives your partners the financial flexibility to hire a replacement or to support the economic loss since the replacement gets as much as speed. Life insurance also can be utilized to finance a buy/sell agreement. This arrangement lets surviving partners buy out the deceased partner's share of the business enterprise at a group price. There are various approaches to arrange this kind of insurance. In one example, each partner buys a life insurance policy on each of the other partners. If one of the partners dies, the surviving partners use the life insurance proceeds to purchase out the deceased partner's share of the business. In a buy/sell agreement, partners get the advantage of keeping the business enterprise functioning smoothly and under their control, while your heirs get the advantage of a payout.
- You plan to truly have a family someday. Even if you're wedded to the single life, chances are you'll get married to someone someday. In 2009, 70 percent of most Americans 15 and older had tied the knot at least one time, according to the U.S. Census Bureau. Buying life insurance when you're younger and healthier typically is significantly cheaper than waiting until later in life. Buying it now can save tens and thousands of dollars. It is simple math. Younger buyers of permanent life insurance also have significantly more time to accumulate cash value inside their policies. After the money value in a permanent life insurance policy has accumulated for some years, it can be borrowed for just about any reason. If you should be young and stick to the fence about buying life insurance, this encourages you to consider a few questions: Do you consider sometime within the next five to 10 years, you may have a family? Do you consider you will have more disposable income now or then?
- You intend to help a well liked organization. Singles may not need spouses or children, nevertheless they still care about the future. Life insurance can be quite a good way to supply for other people they love. The single person might want to leave a financial legacy to a pal or relative, or fund an academic trust for a well liked niece or nephew. Or simply you've a well liked cause which makes the planet a better place. They might also desire to leave a legacy to a well liked charity, church or civic organization.
- You've aging parents. People generally buy life insurance only if someone else depends on the income. Most single people do not fit that mold. However there are exceptions to that rule. One example: Single people who financially support siblings or aging parents. As life spans increase and an increasing percentage of the people chooses to not marry, more singles end up footing the bill for aging parents. It is very common for adults to supply some form of financial support for their elderly parents. Life insurance can ensure their parents have income.