Life insurance is designed to benefit the ones you leave behind when you pass away. So why would you need this type of policy if you live alone and have no dependents? Surprising as it may seem, there are a number of reasons why you might need life insurance, even if you are single and have no children.
You May Want Children Someday
The younger you are when you buy life insurance, the less expensive it will be. If you are twenty-something and single and don’t want children right now, you may decide to have them in your thirties. It makes sense to buy a 30-year life insurance policy now, when it is more affordable, and have it in place when you are ready for children.
You Have Debts Incurred with Co-Signers
Some debts (i.e., federal student loans) will disappear when you pass away. However, this can be a different story with other types of debts or debts co-signed by others. The co-signer becomes responsible for the balance upon your death. If you have co-signed debts, it is wise to purchase sufficient life insurance to help co-signers pay them off in case something happens to you.
You Want to Cover Your End-of-Life Expenses
Funerals and burials are expensive. When you do pass, someone will have to cover the cost. Purchasing a smaller life insurance policy ($10,000 to $20,000) is a good way to ensure your family or friends are not left with the financial burden of your end-of-life expenses.
You Own a Business with Partners
To qualify for small business loans to help grow a business, you will likely be required to have life insurance. Life insurance proceeds could also help your partners keep the business going in the event of your death. There should be a plan in place to protect the business in case any of the partners should pass.
You Want to Contribute to a Worthwhile Cause
Even if you are single with no children and live alone, you may want to leave something behind for others. With the proceeds of a life insurance policy, you can make a significant contribution to a cause, charity, or organization that matters to you.
You Have a Mortgage
Buying a home is a major investment. A life insurance policy can be used to pay off your mortgage should you unexpectedly pass. In this way, your investment in your home can benefit someone else when you are gone.
People Other than Dependents Are Counting On You
Even if you have no dependents, there may be people in your life who are counting on you for help. For example, you may have elderly parents, aunts, or uncles who are retired and living on a fixed income. You may have been planning to help out as much as you can in the years to come. Life insurance death benefits can provide financial help for those who rely on you in case the worst should happen.
If you live alone and are considering life insurance, speak with our friendly agent. We can help you purchase a policy that meets your needs at the best available rates.
September is Life Insurance Awareness Month.
It’s the perfect time to remind ourselves to plan ahead for the ones we love.