Many singles mistakenly believe that there’s no need to get life insurance while they’re unattached. Even if you’re single, your loved ones will have to bear your financial burdens if you die without leaving behind a life insurance policy. It’s crucial that you plan ahead and leave a financial legacy that will relieve the burden on your loved ones. Like most people, you may not want to consider the subject of your own death and the consequences of a lack of financial planning. But it’s important that you start planning for your financial future, which includes the possibility that you could meet an untimely demise.
Life insurance offers more than just a replacement for lost income or a death benefit. It can be used as an additional source of cash. Following are five situations where life insurance makes sense especially while you’re single.
You have a dependent
Being single doesn’t mean that you should leave your loved ones without financial resources. Consider life insurance if a dependent would suffer financially when you’re not around. Your life insurance coverage would provide for your child, parents or grandparents if you’re not around.
It will ensure that your dependents could carry on with some measure of financial support. Your agent will help you to work out the amount of coverage you need based on your financial obligations. You’ll need to update your policy if you get married or have a child.
You have a co-signer on a mortgage or other loan
Life insurance is a required if you’re single and have a co-signer on a car or home loan, or some other significant financial obligation. It’s not practical to leave someone else with the burden of your debt. Your insurance coverage should be sufficient to pay off your debt so someone else won’t have to bear the burden.
You have a family history of disease
Life Insurance quotes will be most affordable when you’re young. The best time to purchase life insurance is when you’re young and healthy — you don’t have to wait until you’re married with children.
Get a head start and purchase your insurance policy if there’s a history of disease that runs in your family. If you wait until you’re diagnosed with a chronic condition, you may be refused insurance or forced to pay an extremely high rate. Get life insurance at the best rates and protect your ability to be insured while you’re young.
To cover funeral expenses
In the absence of a life insurance policy, your loved ones will have to bear both the emotional and financial burden of your passing. The average funeral can cost as much as $8,000. Life insurance benefits will cover the costs as well as provide for your dependents financially depending on your policy.
To keep your business going
Your family business may be your pride and joy, but it can also be a financial responsibility after you’re gone. Life insurance benefits will ensure that your business keeps going after your death.
It’s easy for singles to be complacent when it comes to life insurance cover. While you may not want to think about death, you must plan for that likelihood and get a life insurance policy to take care of your loved ones.
Jessica Watts is a funeral home director. She frequently shares her insight into her field on family and emergency preparation blogs.