Why Life Insurance Is Still Important If You’re Single
Many single people believe they don’t need life insurance. With no one relying on their income to act as beneficiaries, why should they pay the monthly premiums? The truth is life insurance is not just for married people with children. It can have many benefits for single people as well.
When Can Single People Benefit from Life Insurance?
Life insurance can benefit single individuals in a number of different scenarios, including the following:
Building wealth: Life insurance is not only about providing for dependents after your death. You can use a permanent life insurance policy to build wealth while you are still living. This type of policy has a cash value that grows every month when you pay your premiums. You can access that money later on.
Protection in case of illness or injury: When you are single, you are on your own, without a spouse’s income to fall back on. Permanent life insurance can be accessed to provide protection in case of an unexpected illness or injury. This is particularly important later in life when the chances of contracting a critical illness or needing long-term care are greater.
Flexible savings for the future: Savings options are available with permanent life insurance. A variable universal life (VUL) policy has a built-in savings component that allows you to invest the cash value. An indexed universal life (IUL) policy allows you to decide how much cash value to assign to either a fixed account or an equity-indexed account. You can access these savings tax-free, either right away or after a 10-year vesting period.
Covering your debts: Many single Americans have student loans as high as six figures. Private student loans are not forgiven if you pass away. You may have car or home loans that were co-signed by family members. A life insurance policy can help you ensure that your loved ones are not saddled with your debts if something should happen to you.
Protecting your business: Many people are in business these days, and many business owners have partners. Life insurance may be required to get a business loan. It can also help protect your business and your partners if something should happen to you. Life insurance death benefits could help your business carry on.
Preparing for the future: You may not be single forever. The younger you are when you purchase a life insurance policy, the lower the cost is likely to be. If you buy a permanent life insurance policy now with a cash value that grows, you will be in a more favorable position if you should decide to start a family in the future then you would be starting from scratch when your children were born.
Term life insurance is less expensive, but permanent life insurance gives you more value for your money. With all the life insurance options available today, it may be difficult to determine which type of policy is best for you. Our friendly agents can review the options with you and help you find the best rates on a life insurance policy that suits your long-term goals.
It’s the perfect time to remind ourselves to plan ahead for the ones we love.