You already know life insurance is important. You’ve seen the TV commercials with an older, well-dressed couple looking at paperwork in their spacious living room, or ones with young couples and toddlers playing in the backyard, a dog lounging nearby. Life insurance is certainly necessary for married people and those with children, but what if you’re single? You might be wondering if life insurance is for you.
Sometimes it is a tough topic to talk about – insurance can be complex, maybe you are worried about how expensive it will be, and no one wants to think about their mortality. But it is something all adults should consider as an integral part of their financial plan, regardless of their family size. Insurance products are all about protecting you from the downside – read on to learn how life insurance for single people is no different.
I’m Single – Why Should I Buy Life Insurance?
The fact is life insurance is for everyone. It is not only married people or those with dependent children that should consider it. Insurance policies can help singles in many ways, too. Finding the right policy can be challenging, but the experts at Hometown Life Insurance are here to help.
Everyone can benefit from estate planning. You already know that saving for retirement is an important part of financial planning for your future, and so is purchasing life insurance. Proactively taking care of these details before you need them also gives you peace of mind – there are no guarantees in life, and having coverage in place before it is needed might help you rest easier.
What Are the Benefits of a Life Insurance Policy for a Single Person?
The obvious advantage of a life insurance policy is financial, but there are other benefits you should consider when deciding whether to purchase coverage. There are several different policies that provide different benefits, so doing your research is key to finding the most appropriate solution for your individual needs.
You Can Leave a Gift to a Charity of Your Choice
A life insurance policy can have a charity named as a beneficiary or it can pay out the death benefit to your estate and you can name a charity or multiple charities in your will. Perhaps you have a cause that is near and dear to your heart. Leaving that organization with a lasting legacy of your support through a life insurance death benefit can have a great impact and it makes you feel good knowing you will make a difference too!
Tax-Deferred Growth in Your Life Insurance Policy
For certain individuals, purchasing a permanent life insurance policy that provides tax-deferred growth (meaning you don’t pay taxes on a yearly basis as it grows, only if you actually cash it out) is very useful. If you have maximized your TFSA and RRSP accounts, a life insurance plan is another way to tax shelter some of your money. As the cash value grows, so does your death benefit, so you may be able to leave the death benefit to a loved one or a charity of your choice and even receive a charitable giving receipt.
Final Expenses
Everyone has final expenses when they die, even single people. These obligations for singles may be much smaller than a person leaving behind dependent children; however, there are still expenses that life insurance can help with. Even a modest funeral or memorial service carries costs – without a life insurance policy, your relatives may be forced to pay those costs.
Debts
Many people have debts and complicated financial situations that can be mitigated by having a life insurance policy in place. For example, if you have property co-owned by another individual, the other owner may be forced to pay more than they can afford to keep the property upon your death. Leaving a life insurance policy to handle these types of debt could make a large difference for the beneficiary’s future.
Business expenses
If you own a business in partnership with others, securing an adequate life insurance policy to protect their business interests should you – or any partner – suddenly die is vital. It may even be a requirement agreed to in the partnership incorporation papers. In this case, life insurance is simply smart business.
If you anticipate starting a business in the future, it makes sense to invest early in your life insurance policy. This makes you a safer financial risk as a business partner in the future.
What Happens If You Change Your Mind?
Life changes all the time, and it can be difficult to predict. What if you decide to get married or have children later in life? It can be much more difficult to get life insurance at a reasonable rate when you are older or perhaps have an illness. Purchasing a policy when you are relatively young and healthy, even before getting married and having children, is a smart move. It is another way you are planning for a secure financial future. Don’t ignore this valuable investment and future planning tool before it is too late.
Life insurance is more expensive as you age
Premiums increase as you age or are diagnosed with a serious illness considered a pre-existing condition. Because of this, it makes more financial sense to purchase a life insurance policy when you are younger and in good health. Your premium payments will likely be more affordable this way as the insurer expects you to live a long time and pay lots of premium dollars over that time. If you were older when purchasing coverage, and therefore had less time to pay premiums to the company, your rate would be higher to compensate for fewer payments to the insurer and the likelihood that the insurer will be paying the policy benefit sooner.
How Do I Learn More?
There are many different types of policies, and life insurance can get complex quickly. Relying on experts to guide you is important. As a single person, your insurance needs are different from those with dependents, so getting individualized help for your situation is vital.
Now that you know more about why you need life insurance as a single person, contact the experts at Hometown Life Insurance to get started. Our licensed professionals will be happy to answer any questions you have.
