Your debts aren’t forgiven if you die. Even if you’re not married, someone in your life may be required to pay them.
Some decisions seem easier when you’re single, like getting life insurance. We know the reason behind this type of financial protection. Life insurance protects your loved ones in the event that something unexpected happens to you. If you don’t have a spouse or kids, what’s to protect?
The reality is that there are important reasons to get life insurance when you’re still single, even when you’re young. Some of the benefits might surprise you. Here’s why a life insurance policy for single people makes sense.
Do you have debt?
Your federal student loan debt is discharged in the event of your death. But other financial institutions aren’t so forgiving. The ability to pay those student loan obligations might also mean that you had to rely on your parents, or maybe someone else like another relative or friend, to cosign on a loan for your car – or maybe to apply for a credit card.
A cosigned debt becomes the responsibility of whomever also is on the note. If you have debt responsibilities shared by others, life insurance is the best way to assure that you don’t leave them stuck with your financial responsibilities.
This is a good way to also take care of debts that are yours alone. You won’t be around to deal with them, but these debts don’t just disappear. They’ll be settled out of the proceeds of your estate. Your relatives will be burdened with having to deal with liquidating your assets and paying off your outstanding debts. Again, an inexpensive term life insurance policy is often more than enough to settle your debts and cause as little frustration as possible for the family or friends you leave behind.
Do you own a business with others?
Depending on how it’s structured, your financial obligations could become problems for business partners if you die. Even if you have no debts, your death could drastically impact the ability of the business to continue.
One way to ensure that your partners can keep the venture going is to invest in a life insurance policy for yourself. Each partner should do the same. It’s important to discuss this first with your financial planner or an expert in this area. The reason for taking out a life insurance policy for this purpose is straightforward, but there may be complex steps involved to make sure it’s been done correctly.
Life insurance costs less when you’re young
If you’re like a lot of people, you’ll wait until you get married to buy a life insurance policy, and then you’ll pay more for it. Age and other factors like your overall health history and even your weight will determine the cost of the policy.
The best time to invest in future financial protection is when you are young, even though if you are also a single person, it might seem like you don’t need it. You will never pay less for a life insurance policy. It will continue to cost more each year.
We can’t do much about genetics – at least right now – which means that buying life insurance while you’re young and single can also help make sure you actually are able to secure this type of financial support. Once diagnosed, inherited medical conditions like diabetes or heart disease will significantly increase the cost of a life insurance policy – or make it impossible to get coverage at all.
End-of-life expenses
Life insurance does more than make sure that your financial obligations are taken care of if you die. But debt isn’t the only financial burden.
There may be medical expenses that aren’t covered. These will become the responsibility of those related to you. The cost of your funeral also will have to be absorbed by relatives or friends if you didn’t set aside money for that. Burial and funeral expenses have been rising sharply. According to the National Funeral Directors Association (NFDA), the average funeral today costs over $7,000.
It might not be something you think about – or want to think about – but do you wish to put that kind of financial burden on your family? There is a wide range of inexpensive life insurance policies that will provide sufficient coverage of your end-of-life expenses.
Not just for married people
It’s easier for insurance companies to convince married couples with children about the real need for the financial protection of life insurance. It’s why the majority of advertising you see portrays couples or families.
Spouses and children aren’t the only ones who feel the financial burden if you die, however. There’s a wide array of people – related or not – who become responsible for your debts if something happens to you. Purchasing a life insurance policy when you’re single is the best way to protect those you care about from this unpleasant responsibility.
NICRIS Insurance focuses on providing clients with the appropriate suite of products to protect them, their interests, and their loved ones. Schedule a free, personalized insurance review or contact us with any questions.