Why Life Insurance Is Worth It
Learning about the ins and outs of life insurance can be a daunting task. You may not think you need life insurance.
The benefits of life insurance seem pretty self-explanatory in most cases. By taking out a life insurance policy (especially if you’re the breadwinner), you can ensure that your spouse and children are taken care of if you should unexpectedly pass away.
Because of this, many who have no spouse or children think they can skip out on life insurance. In reality, life insurance is still vitally important for this group. Keep reading to discover why life insurance is worth it even if you have no spouse or children!
You may not have a spouse or children. But do you have a mortgage? In that case, you should strongly consider taking out a life insurance policy for yourself.
That’s because when you die, that house will go to whoever you specify in your will. For example, you could leave the house to a sibling, a nephew, or even your parents.
But if you are still making payments on your mortgage, then you will pass on the debt, as well as the mortgage itself. This will put your beneficiary in the uncomfortable position of making expensive mortgage payments.
However, if you have a certain type of life insurance and your beneficiary is the same person getting the house, then your own death benefit can pay the remaining debt. And the person with the house can either live in it or sell it without worrying about taking on new debt.
Help Out Your Cosigners
Speaking of debt, a person without a spouse or children probably isn’t worried about things like credit card debt. After all, that debt won’t negatively impact anyone else after you pass away. But if you have any cosigned loans, then you need to worry about what your cosigners will do after you die.
For example, your credit score can play a major role in whether you can buy a car and what your interest rate will be. In order to get a better rate, many people end up cosigning a car loan with their parents or someone else they trust.
If you have such an arrangement and unexpectedly die, then your cosigners will be left making car payments. But, with a life insurance policy, your cosigners can use specific death benefits to pay off the remaining debt.
Student Loans? Taken Care Of
When it comes to debt, few kinds of debt are more annoying or more persistent than student loans. In fact, many spend decades paying these loans off. And if you’re still paying off student loans and wondering what will happen if you die, we have some good news and some bad news.
The good news is that your federal loan (such as Stafford loans) debt should be discharged once you die. The bad news is that other loan debt, such as private loan debt, will likely not be removed. And private lenders may have their own rules about who your debt will pass onto after your death. Regardless of the policy, any loans that your parents or anyone else cosigned with you will fall to them to pay back after you are gone.
Once more, this is where life insurance comes into play. With a death benefit to pay any remaining debt off, you don’t have to worry about anyone else being left holding the bag with your student loans.
Not All Dependents are Children
Traditionally, life insurance is used as a way of leaving money to your dependents when you are gone. Those dependents are usually your children, and someone without children may think they have no need for such insurance. But keep in mind that not all dependents are children!
For example, as many families face financial difficulties, it is not uncommon for parents or grandparents to move in with their children. And it is also not all that uncommon for a younger family member to live with you (such as a niece or nephew), and you raise them like your own child.
All of these examples have one thing in common: Financially speaking, these are your dependents. And if you should unexpectedly pass away, they may be left very vulnerable. By taking out a life insurance policy, you can ensure that your death doesn’t negatively impact their lives for years to come.
Those Pesky End-Of-Life Expenses
So far, the scenarios we have outlined are very conditional. In fact, none of them may apply to you. However, one thing that every person must eventually worry about is planning for their end-of-life expenses.
Did you know that the typical funeral may cost as much as $10,000? Even if most of your funeral arrangements are very basic, unexpectedly dying without insurance coverage means leaving one or more of your family members with thousands of dollars of unwanted debt.
However, even a modest life insurance policy will be more than enough to cover your end-of-life expenses. And you don’t have to worry about financially burdening your family members in the event of an accident.
Leaving Your Options Open
If you’re reading this, chances are that you currently have no spouse or child. But do you think that is likely to stay the same over the next 20-30 years?
It’s possible to take out term life insurance for up to 30 years of coverage. And if you go ahead and take out this coverage when you are relatively young and healthy, then you are likely to have very low monthly premiums.
This means that you can go ahead and get decades of affordable life coverage that helps provide all of the benefits we have already outlined. And if you should later get married and/or have children, you can always change the death beneficiary while enjoying the protection life insurance offers.
That way, whether you start a family or stay single, you know the most important people in your life will be protected.
Get the Best Life Insurance Today
These are some of the reasons why life insurance is so important, even if you have no spouse or children. But do you know where to get the coverage you deserve?
Here at Insure One, we specialize in protecting you and your family with excellent life insurance coverage. To see how we can keep everyone and everything safe, come explore our life insurance options online today! Alternatively, you can discuss your options with us at the nearest office or by phone at 800-836-2240.