Many believe life insurance isn’t a necessity while they’re single, but nothing could be further from the truth. Life insurance is for anyone, and it is useful in many more situations than just providing a cushion for a spouse in the face of suddenly lost income. Here are seven reasons why you might need life insurance even if you’re single:
You have debt. Most Americans owe money for one reason or another. Whether it be a mortgage, car note, outstanding medical bills or just a general loan, one of the questions concerning debt remains the same: Who would be responsible for paying it back in the event of your death?
People depend on you. Being single doesn’t mean people don’t rely on you. Maybe you’re a parent with young children. Maybe your own parents are getting older, and you take care of them or pay for them to have part- or full-time care. You may even have a disabled sibling or adult child who depends on you for care or stability. What would happen to them if you were no longer around?
You own a business. In most cases, a financial institution issuing a business loan will require a life insurance policy as collateral. Even if this is not the case, key person life insurance is always beneficial for business owners. Should you pass away unexpectedly, the death benefit from a life insurance policy can help keep the business afloat.
You want options while you’re still living. Life insurance policies don’t just provide a death benefit. Permanent products, such as whole and universal life, grow cash value throughout the life of the policy. Term policies with a return of premium feature, also accumulate cash value, in addition to providing conversion options. Cash value can be withdrawn by the policy owner to do things like making a down payment on a home, supplementing retirement income or covering an emergency expense.
You want to lock in coverage. Premium rates are based on age and overall health; therefore, the longer you wait to purchase a policy, the more expensive that policy becomes.
You want to cover your final expenses. Funerals are notoriously expensive, with even the most basic costing thousands of dollars. That could easily translate into debt for your loved ones.
You want to leave a legacy. You may wish to leave money to a beloved school, religious organization, charity or individual. Some or all of your policy’s proceeds can be dedicated in whatever way you see fit.
Since insurance needs differ from person to person and from one stage of life to another, life insurance is not “one size fits all.” Your life insurance program can be designed to fit your specific needs and financial goals and can grow as your needs do. Contact your independent insurance agent to discuss which life insurance program best fits your needs.
For policy service and additional information, speak to an independent agent representing The Cincinnati Life Insurance Company. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products and riders available in most states.