Think you don't need life insurance if you don't have
kids? Think again. It may seem like an unnecessary expense. But
there are many reasons to have life insurance, even if you're not
supporting a family.
1. Mortgage protection
Whether you live by yourself, with a spouse or significant other,
you may want to buy life insurance as mortgage protection. Think
about it − you don't want the person you live with to be homeless if
you die unexpectedly, do you?
Term life insurance can be used to pay off an
outstanding mortgage balance. Just select a term that matches the
length of your mortgage payment period. Some companies even offer
decreasing term insurance, which means the death benefit decreases
along with your mortgage balance.
2. Income replacement
You and your significant other may have planned for a future based
on two incomes − but what if one of you passes away unexpectedly?
Life insurance can be used to replace the lost income so the
survivor can maintain the same standard of living.
3. Final expenses
You've seen the commercials − funeral expenses, burial costs and
medical bills can add up to a hefty amount. The last thing you want
is for your loved ones to shoulder this extra burden.
Life insurance can be used to plan for these final
expenses. Permanent life insurance is available in various amounts,
so you can pick a death benefit that meets your needs.
4. College funding
OK, OK - this one only applies if you have kids. But have you seen
the tuition rates lately?
Life insurance can help fund a college education.
If you die, the death benefit may be invested and potentially grow
to the needed amount by the time your children reach college age.
Feel better knowing that you helped prepare for their future − even
if you are not there to see it.
Just keep in mind that investing involves market
risk, including risk of loss of principal. Take care to ensure that
permanent life insurance is suitable for your long-term life
insurance needs. You should weigh any associated costs before making
5. Life Sound Basis
As your personal situations change (i.e., marriage, birth of a child or job promotion), so will your life
insurance needs. Care should be taken to ensure this product is suitable for your long-term life insurance
needs. You should weigh any associated costs before making a purchase. Life insurance has fees and
charges associated with it that include costs of insurance that vary with such characteristics of the insured
as gender, health and age, and has additional charges for riders that customize a policy to fit your individual needs.
...The earlier the better
So maybe you're starting to see the need for life insurance and
you'll call your agent next week, right? Don't put it off!
Typically, the younger you are when you get insurance, the lower the
cost and the easier to get approved.