If you don’t have a partner or children who require your financial assistance, you may think it isn’t necessary to purchase life insurance. However, there are a number of reasons why even single adults need to have life insurance.
To Pay for End-Of-Life Expenses
Funeral expenses in the United States can cost about $10,000 on average. While it may not be something you want to think of, it’s a good move to purchase a life insurance policy to ensure your family has the means to take care of these expenses.
Life Insurance Becomes More Expensive as You Age
While you may not have a partner or spouse that depends on your income today, things could change in the future. Life insurance tends to cost a lot less when you are young. If you purchase a term insurance policy, you can even lock in the premium for the duration of the policy tenure, keeping your premiums from increasing as you grow older.
You Have Co-Signed Debts
If you’ve taken out an auto loan or a mortgage where a parent co-signed the loan for you, you should purchase a life insurance policy and make them the beneficiary. This ensures that your parents are able to clear your debts in case of an unfortunate eventuality.
You Financially Support Others
If you financially support an elderly parent or any other member of your family, a life insurance policy is a great way to ensure they are not left in the lurch if something untimely happens to you.
To Leave a Legacy
You should consider purchasing a life insurance policy if you want to make a significant contribution to a charity, set up a scholarship fund, or even leave behind an inheritance for someone in your life. If the unexpected should occur, the proceeds from your life insurance policy can serve as your legacy.
Whole Life Insurance or Term Insurance – Which Should You Buy?
There are two major types of life insurance policies available – whole life insurance and term insurance. A whole life insurance plan offers long-term coverage and builds cash value. A term insurance plan, on the other hand, offers basic life insurance coverage for up to 30 years and is comparatively inexpensive. Make sure to assess your coverage needs and premium payment ability when deciding which type of policy to purchase.
