There is a widespread misconception that persons who are single do not require life insurance. Why should they pay the monthly premiums if they don’t have anyone who is dependent on their income to act as beneficiaries? The fact of the matter is that life insurance is not just for people who are married and have children. Even people who aren’t in relationships can reap many of the benefits from it.
When Would a Single Person Benefit From a Life Insurance Policy?
An individual who is unmarried and lives alone may benefit from life insurance in a variety of different circumstances, including the following:
Building Wealth
There are other reasons to have life insurance besides providing for one’s dependents after death. Building wealth while you are still alive is possible with the help of a life insurance policy that is perpetual. When you make your premium payments on time each month, the cash value of this kind of coverage continues to increase. That money will be available to you at a later time.
Protection in Case of Illness or Injury
When you are single, you do not have the financial support of a spouse and hence cannot rely on their salary. Permanent life insurance is a form of protection that can be tapped into in the event that an unexpected illness or injury befalls the policyholder. This is of utmost significance later in life, when the risk of developing a serious condition or the requirement of receiving long-term care is significantly increased.
Flexible Savings for the Future
Permanent life insurance may provide you with the opportunity to save money. You are able to make investments with the cash value of a variable universal life (VUL) policy since it contains an integrated savings component. You have the ability to choose how much of the cash value in your policy will be placed in either a fixed account or an equity-indexed account with an indexed universal life (IUL) policy. You have the option of accessing these savings tax-free either immediately or when a vesting period of ten years has passed.
Covering Your Debts
There are a lot of people living alone in the United States who owe as much as six figures in student debt. If you pass away with private student loan debt, it will not be forgiven. It’s possible that members of your family co-signed loans for your automobile or house. If something were to happen to you, having life insurance might assist assure that your loved ones would not be responsible for paying off your financial obligations.
Protecting Your Business
These days, there are a lot of people running their own businesses, and a lot of those people have partners. It’s possible that getting a loan for your business will need you to get life insurance. In the event that something were to happen to you, it might also assist in protecting both your company and your business partners. Your company may be able to continue operating with the assistance of the benefits from your life insurance policy.
Preparing for the Future
Being single isn’t necessarily permanent. It’s true that the younger you are when you buy life insurance, the cheaper the premiums will be. You can put yourself in a better financial position if you decide to start a family in the future by purchasing a permanent life insurance policy with a cash value that rises now.
The cost of term life insurance is lower, but the value of a permanent policy is much higher. It might be confusing to sort through the various life insurance policies out there to find the one that’s right for you. If you’re looking for life insurance, our helpful agents can go over your options with you and help you select a policy that fits your budget and your needs.
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