It is very interesting that so many single people do not have life insurance. Most simply feel as though they do not need. They figure that if they don’t have a spouse or children to leave the money to in the event of their untimely death that they really have no need for this coverage. Therefore, if you are sitting there shaking your head in agreement, you are not alone.
You may be interested to know that there are plenty of reasons why you should have life insurance. If fact, an increasing number of singles every day are becoming a little more educated on the topic, and realizing that they really do need it. In all likelihood, whether you realize it or not, your death will indeed have a significant financial impact on someone. Below are a few reasons why it is a good idea to have, even for a single person.
Sure, you may say that you are going to stay single forever, but a lot of people say that before they meet their perfect match and start a family. You could be thinking that should the time ever come when you actually want to be in a forever relationship then you will start up an insurance policy with your significant other.
Well, for starters, one, ten or twenty years from now, your policy is going to cost you more. Life insurance companies take age into consideration when determining a premium. Therefore, your premium will never be less expensive than what it is today.
Not to mention, why wait year? You can start building your policy now, and actually have something to work with when the time come. Plus, although you may feel invincible now, and like you will never get sick, but you really never know. Although there are some life insurance companies that offer coverage to individuals with medical issue, there are also many that do not.
End of Life Expenses
Someone is going to be responsible for your end of life expenses. You may not think much about it now, but your parents, siblings, cousins or friends will need to come up with the money for funeral costs. Not to mention, do you know that lenders could go after an immediate family member to pay off your mortgage, car loan or other debt? This is especially true if you have a cosigner. Do you really want to leave these expenses behind?
Name Your Beneficiary
Many people are under the impression that they can only name a spouse or child as a beneficiary. This is absolutely not true. You can name whoever you want, even if it is a friend who has promised to give your dog a good home. You can even name a charity to receive a steady income stream or one lump sum.
Most people have no idea that their life insurance policy can potentially be a means of forced savings. Some policies will allow you to borrow from yourself tax-free, if you need to. So, if an emergency arise years from now and you need the cash, you have access to money you would not otherwise have.