Should you purchase life insurance even if you are single? The insurance experts at Life Quotes say that it’s a great time to buy, since you’re very oftentimes young and healthy in your single years.
In fact, one misconception about life insurance is that being single is a reason not to need life insurance. However, this is just not true. Your life may have an impact on others when you die. Therefore, you may want those that you care about not to worry about your funeral expense or other debt.
Loved Ones
Just because a marriage may not exist, you may have someone close to you that shares the expenses of daily life. If something unexpected happens, you can still designate someone you care about to help continue to take care of additional expenses that may occur. It is also a tax-free legacy to leave to other family members such as nieces or nephews.
Small Business Owner
What would happen to a partner in that business? According to LIFE, a life insurance policy can be structured to fund a buy-sell agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed price.
Retirement
Generally we talk about Roth IRA, 401(k)s , stocks and bonds, but we do not think about life insurance as a part of our financial planning. But whole life, for example, purchased by a parent can actually help contribute to a son or daughters college education. If you purchase a whole life policy in your early 20’s, you may be able to pay off debt or buy that new home ten years later.
Charity
If you are involved in volunteering for a charity, you can arrange to give the gift of life insurance. Most charities will list the client as a donor of the amount of the death benefit, but the client only pays the premiums,” said Herb Daroff, director, estate and business planning, Baystate Financial Services, in Boston.
If you are young and healthy, this is the best time to be accepted and afford the great rates. Another reason to consider life insurance today.