Since you are single, you may believe the myth that you do not need life insurance. Nothing could be further from the truth. Would you think 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 families. If you are single and pass away, your family may be impacted in a way you might not have considered.
When young adults pass away, they typically leave a lot of one thing behind – debt. For instance, you may have graduated with a large student loan. To get that loan, your parents likely co-signed for you. A co-signer accepts 100% responsibility for loan repayment should the other borrower default. Therefore, if you die with a student loan and you obtained the loan with a co-signer, your co-signer will be responsible for the 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 prominent. You provide the only income for your family and are the sole means of support for your children. If you pass away, your extended family may be able to step in and help out. However, they likely might not be able to entirely or comfortably cover your family’s expenses entirely or comfortably. Thus, a single parent’s need for life insurance may be even more significant 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 most of the estate to your heirs rather than the government. Life insurance premiums for seniors have traditionally been cost-prohibitive, but premiums are becoming more affordable due to the country’s healthy senior population.
Many options are available in life insurance policies, and you can purchase a policy tailored to 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. Specific policies will maintain your low fixed premium rate for your entire life.
Regardless of your marital status or the ages of your children, life insurance provides you with a sense of security and is an asset in your financial portfolio. The death benefit provided to your loved ones upon your death may encourage you to consider life insurance. Still, the cash value of specific policies may cause you to appreciate their contribution to your financial future. Whatever your stage in life, consult with Brian Gruss to discuss which life insurance options are best for you.