Most financial "gurus" will tell you that single people don't need life insurance. Here's 7 reasons a single person may want to own their own life insurance policy.
- Dependents - some statistics state that more than 25% of the children in the United States live in single-parent households. If this is your situation, you'll want to do all that you can to ensure that your dependent child(ren) are provided for should something happen to you. It's also an excellent time to speak to an estate planner. They can set up both a will and a trust that can outline your wishes for your dependent(s).
- Student Debt - if your parents or grandparents are co-signers for your student loans, chances are they are on the hook for paying back the debt should something happen to you. Make sure to check the fine print and ask what happens to the loan should something happen to you.
- You Own a Home - if you are paying a mortgage on a home you purchased, somehow that debt will need to be paid should you pass. You may be tempted to just let it go back to the bank but it can create a huge headache for your family or friends. A better option is to have a life insurance policy that can be used to pay off the house. This gives those you love and who love you time to decide what to do. It keeps the home from becoming a "fire sale" to appease the lender. Maybe you want the home to be sold and the proceeds donated to charity. That too can be laid out in your estate plan.
- You Co-Own a Business - you and your business partner have worked for years to create and grow your wacky-widget business. The company of your dreams is running strong. What happens if you, the visionary, die? Does the business fold? Does your partner limp along trying to do your job and theirs? A better plan is to have a life insurance purchase agreement that can help relieve the stress of losing a business partner. It can be designed to achieve a number of different goals should the unthinkable happen.
- You plan on having a Family in the Future - you may be thinking that you'll get the insurance but not until later when you have a spouse and children. This sounds good but since life insurance premiums are based on age and health, you may be better off to purchase life insurance now. Premiums increase with age and health decreases with age. You may even consider setting up your life insurance program now while you are young and healthy and use an ART (Annual Renewable Term) strategy to keep costs low. This strategy starts premiums extremely low and increase slightly annually. This way the coverage is in place no matter what happens health-wise.
- Your Family has a History of Significant Health Issues - as the saying goes, the apple doesn't fall far from the tree. If your family tree is full of people with significant health issues, you may consider purchasing life insurance early and as much as you can reasonably afford. You're more likely to be approved when you are young and healthy before these issues arise. On a related note, this is an excellent reason to purchase significant policies for your dependents. I worked with a gentleman who had a heart transplant at age 6. Thankfully his father had purchased a $50,000 policy on his life with Guaranteed Purchase Options. These options allowed him to purchase additional insurance without proof of insurability thus protecting his young and growing family.
- Someone will have to deal with your End of Life Expenses - even if you have no debts, loans, businesses, or dependents, someone is going to have to write a check for your funeral. A life insurance policy is an easy way to make that happen without POAs especially if you name the funeral home as the beneficiary.
If you or someone you know would like free, friendly advice from a Catholic perspective, reach out to me. I'm happy to help and with COF, we are here for Catholics of all walks of life. We serve Catholic men, women, and children just like you everyday....married AND single!
740-324-0702
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