You're single - thank goodness you don't need life insurance, right? Wrong! Would you believe that as a single person, you might need life insurance even more than if you were married? Married people leave behind spouses who can provide for their family. If you are single and pass away, your family may be impacted in a way you might not have considered.
Young adults typically leave a lot of one thing behind - debt. For example, you may have graduated from college with a large student loan. To get that loan, your parents may have co-signed for you. A co-signer accepts 100% responsibility for repayment of the loan should the other borrower default. What does this mean? If you die with a student loan and you obtained the loan with a co-signer, your co-signer will be responsible for repayment of that loan. In addition to the possibility of leaving behind loans, the cost of your final expenses may be more than you realize. Burial and funeral costs can run into the thousands, often making it difficult for family members to meet the financial obligations of paying for a funeral. A life insurance policy can protect your family from having to meet financial obligations on your behalf.
As a single parent, your need for life insurance may be more apparent. You provide the only income for your family and are the sole means of support for your children. If you die, your family may be able to step in and help out, but they might not be able to completely or comfortably cover your family's expenses. Thus, a single parent's need for life insurance may be even greater than a married couple's.
What if your spouse has died and your children are grown? With proper estate planning, life insurance can help protect your estate so you can pass on the majority of it to your heirs, instead of to the government. Life insurance premiums for seniors have traditionally been cost prohibitive, but due to the country's healthy senior population, premiums are becoming more affordable.
Your choice in life insurance policies can be tailored for your specific circumstances. If you obtain a cash value life insurance policy and pay your required premiums, the policy will be in force for life and will become an asset in your future. Another option would be to choose a policy where you can lock in the premium rate. Premiums are lower for younger adults and increase as you age. Certain policies will maintain your low fixed premium rate for your entire life.
Regardless of your marital status, life insurance can provide you with a sense of security and can also be an asset in your financial portfolio. The death benefit provided to your loved ones upon your death may encourage you to consider life insurance, but the cash value of certain types of policies may cause you to appreciate its contribution to your future. Whatever your stage in life, consult with your financial advisor to discuss which life insurance options are best for you.