Life Insurance: Where Does It Fit In A Single’s Lifestyle?
Single individuals with no dependents are not advised by some financial experts to acquire life insurance. Protection products like life insurance for the singles have a lot of advantages too. There are some circumstances that are inevitable. Life insurance is not a one-time-buy sort of product. It needs years to grow and proper planning. The moment that one’s financial status hits stability, enough to acquire a life insurance, then go for it. Here are some reasons why should a single person buy life insurance:
Premium rates are lower for younger individuals because they are perceived as low-risk consumers, with accordance to the life expectancy. Don’t make this a single basis for acquiring a life insurance though, if it proves to be of no value in the long run, there’s no need. However, if the investment has value, purchase it when possible.
Single individuals in time of death, will pass on the responsibility of final expenses to their immediate family. Sparing loved ones from burial costs may sound morbid. But we have to face the fact the death can come anytime. Life insurance with burial insurance and final expenses included on their policy allows you to pick the coverage amount you prefer. Some burial insurance takes care of the cemetery plot, headstone, casket, funeral service, minister and hearse.
For single and young individuals with plans of establishing a business in the future should consider getting a life insurance. Whether it’s a sole proprietorship, a partnership or a corporation, life insurance is necessary for the success of your business. Having insurance earlier also implies how serious you take yourself and thus promotes trust with clients and partners.
Cash Value Plans
Cash-value plans are ideal when you want to start young. As it accumulates more money the longer you are contributing on this life insurance plan. Benefiting from compounded interest at an earlier age is good benefit at itself too.
Health is not something that should be taken for granted. Sooner it will deteriorate. For single individuals with family history of cancer or heart disease will have a harder time looking for a life insurance when older. The younger and the healthier, the better it is to acquire life insurance. Time will come when the status will be too high-risked to qualify for a good life insurance. Insurability is important– take it while it’s still available. After all, singlehood does not last forever.
There is such a thing as forced saving. Young and single folks are known for their irresponsibility when it comes to money handling. When some try to save, other things less important but usually considered equally important happens and the savings will be spent. Getting a life insurance will ensure that savings happen at an earlier age. Since future finances are not important to single and carefree individuals, might as well pay a life insurance plan on a monthly basis.
Honestly speaking, there is no immediate need for single individuals to acquire life insurance but we must consider the plans for the future—5, 10 or 20 years from now. Years after, will life insurance be needed? Will the insurability rises or decreases? Consider the future, that’s where you are heading to anyway.