Hey, you are young, healthy and single, so why should life insurance even be a consideration? The problem is people do not stay young and healthy forever. Everyone dies; it is part of the natural process of life. So, the question remains, who will pay for your final expenses? Such as funeral expenses (which cost between $7,000 and $10,000) or remaining debt (such as mortgage or automobile payments).
Even though you are not married or do not have children, you may still want to seriously consider investing in life insurance. Below are some important reasons that young, single, and healthy individuals would want to get a life insurance policy.
- It is less expensive. Individuals, who are married with children, will be paying a higher premium. When a person is younger, life insurance policies are less expense. Investing now will reduce the risk later on, for either paying a higher premium or not qualifying due to health issues. For instance, a policy for a healthy non-smoking young singleton may be about $35 a month. The same policy for someone who is 45 years old, married with children could cost twice as much. Remember, if you purchase life insurance today, you can protect yourself and those that you love.
- Support your loved ones. According to a United States Census Report, more than 15 million unmarried individuals live with under-aged children. Even if you are not a parent, there will more than likely be loved ones that depend on you financially (such as elderly parents or a sibling that may have special needs), and a life insurance policy can secure their finances and care.
- Unpaid loans. If you are young and single, it is more than likely that someone co-signed a loan (such as a student loan or a car loan) for you. Having a life insurance policy in place will help the co-signer to repay the loan, without having to burden the cost themselves, in case of your untimely demise.
- Furry friends. If you were to die un-expectantly, what would happen to “fluffy” and/or “Duke”? Having a life insurance policy in place will allow you to name a pet as the beneficiary, or name a specific person the main care-taker of your pet, and provide the finances needed for daily care.
- Securing business. If you are a partner in a small business, a life insurance policy will help your partners to more easily buy out your portion of the business.
- Leaving a tax-free legacy to any loved one (a niece or nephew for example) or a charity. Many life insurance policies offer an option for paying out once, or creating a steady stream of income for a period of time to an individual or organization.
If you do purchase life insurance as a singleton, it is vital that you re-evaluate the policy from time to time, especially after big life events (such as a marriage or birth of a child), as this will ensure that all your needs are properly covered and insured.