Most people wait until they have a spouse or children to take on life insurance because, traditionally, life insurance is considered a cushion for dependents to replace the lost income when a spouse or parent dies. So, without any dependents, single people do not consider insuring their lives. However, leaving behind some cash for your spouse and kids is not the only rationale for life insurance. Here are the top reasons life insurance makes sense for single people.
Life insurance is a must-have for single people for the following reasons:
Most Americans have outstanding debt, including student loans, mortgages, and credit card debts. If you died unexpectedly, your cosigners would take on these debts, which would set them back financially. So, to cover your financial obligations and protect your loved ones from burdensome loans in case you die prematurely, take up a life insurance policy.
Buying life insurance also benefits single people because they have financial obligations to others. For example, you could be a single parent with young children or adult children with special needs, disabled siblings, or aging parents who depend on you to fulfill their needs and wants. If you were no longer around, what would happen to them? A life insurance policy would provide financial assistance to buy necessities and hire caregivers. Therefore, life insurance is essential for singles because it brings some certainty that those who depend on you would be okay in your absence.
Your business is not just an income source; it also reflects your vision, passion, and legacy. It would be truly sad if all your sacrifices, dedication, and hard work ended with you. Signing up for life insurance can help safeguard it and ensure business continuity in unforeseen circumstances.
Life insurance is also crucial for single people who need a financial boost here and there in the form of business loans. Some lenders insist on having life insurance to qualify for their loans because it guarantees getting their money back if you die before the loan is paid off. Life insurance is therefore a necessity for singles, to help them expand and keep their businesses afloat.
Business may also necessitate getting life insurance if you're in a partnership, and the death of either of you would disrupt operations. There's unique business insurance called critical person insurance or key man insurance that protects the business against losing a key individual due to death or inability to work due to critical or terminal illness. With this type of life insurance for single people, the proceeds can be used to offset the financial impact of hiring and training a replacement, covering financial costs that come with the death and others for smooth running and continuity of operations.
Generally, life insurance costs less when you're young. If you wait until you’re older and unfortunately develop health issues, you’ll be asked to pay more for coverage. So, it helps to lock in coverage early when you're still young and healthy, rather than rushing to shop for a policy when older and with significant medical bills. In addition, if you take up permanent life insurance, owning it for many years allows its cash value component to grow, and you could borrow or withdraw against it, which makes life insurance beneficial for single people today, and to their future spouses, children or other dependents.
It's noble to leave footprints of kindness and generosity throughout your life and when you're gone. Taking up life insurance and leaving the money to a religious organization, charity, school, or beloved person is another reason why life insurance for singles is valuable. You could leave instructions for some of the proceeds to go towards your final expenses (funerals can be expensive) and the rest to a person or institution of your choice. It's an excellent way to change people's lives and ensure your legacy and name live on after you.
The above scenarios illustrate the importance of life insurance for singles because the need for life insurance benefits will come up in the near or distant future. It could be anything from attending to business needs to covering your loved one's needs after you're gone. So, buy a life insurance policy sooner than later. LendMeMoney.com showcases some excellent life insurance offerings, sorted from the pool of insurers across America. Look through our suggestions and contact us to get the best offer!
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