Even if you are single, you too can benefit from life insurance. Just because you are unmarried doesn’t necessarily mean you are alone. Your life and your death will have an impact on other people involved with you.
When we are young we sometimes have a sense of invulnerability and the chances of an untimely death seem remote at best. At that age many of us don’t see the need or understand the benefits of life insurance. However, life insurance can be an important part of your future financial security planning that should be considered.
An important consideration is the fact that your life may not always be the way it is today. If you were to buy a single policy now you could just add on existing coverage if you were to get married instead of trying to start with a new policy that will likely be more expensive at that time. This illustrates the fact that buying a policy when you are young and healthy is not only less expensive but it could lessen the possible future risk of health issues that would hamper you insurability or raise your premiums to an undesirable level.
End of life expenses and the desire to leave a legacy are also to be considered. Your funeral is most often thought of as the only debt you may incur but, other debts and outstanding expenses including a mortgage or other responsibilities should be thought of. Co-signed loans may continue after your death and having a proper amount of life insurance can help with the burden of paying of debts. Leaving a legacy could mean to a family member such as a niece or nephew or dependent adult, it can also mean a charitable organization. Purchasing a life insurance policy can help meet these goals.
A single person can also benefit from a life insurance policy as a kind of forced savings mechanism. Payments made into your whole life or universal life plan can earn interest over the life of the policy. These funds can be accessible for times of hardship and they will have grown from the interest they would have accrued. It can also be possible to earn too much to qualify for a Roth IRA but still be able to take advantage of tax deferred accumulation of monies by utilizing a qualifying cash value life insurance policy.
If you are single, do not overlook the many possible benefits that a life insurance policy can provide.