Many single people believe that they do not need life insurance. Since no one relies on their income to function as beneficiaries, why should they pay the monthly premiums? The truth is that life insurance is not just for married people with children. It can have many benefits for single people as well.
When can single people benefit from life insurance?
Life insurance can benefit single individuals in a number of different scenarios, including the following:
- Building wealth: Life insurance is not just about to support relatives after your death. You can use a permanent life insurance policy to build wealth while you are still alive. This type of insurance has a cash value that grows every month when you pay your premiums. You can access that money later.
- Protection in case of illness or injury: When you are single, you are alone, without a spouse's income to fall back on. Permanent life insurance can be obtained to provide protection in the event of an unexpected illness or injury. This is especially important later in life when the chances of suffering from a critical illness or needing long-term care are greater.
- Flexible savings for the future: Savings alternatives are available with permanent life insurance. A variable universal life (VUL) policy has a built-in savings component that allows you to invest the cash value. An indexed universal life (IUL) policy allows you to decide how much cash value to allocate to either a fixed account or a stock indexed account. You can access these savings tax-free, either directly or after a 10-year vesting period.
- Cover Your Debts: Many single Americans have student loans as high as six figures. Private student loans are not forgiven if you pass away. You can have a car or home loan signed by family members. A life insurance policy can help you make sure your loved ones are not bothered by your debts should something happen to you.
- Protect Your Business: Many people are in business nowadays, and many business owners have partners. Life insurance may be required to obtain a business loan. It can also help protect your business and your partners should something happen to you. Life insurance benefits in the event of death can help your business continue.
- Preparing for the future: You may not be single forever. The younger you are when you buy a life insurance policy, the lower the cost is likely to be. If you buy a permanent life insurance now with a cash value that grows, you will be in a more favorable position if you decide to start a family in the future as you would start from scratch when your children were born.  Life insurance is Cheaper, but permanent life insurance gives you more value for money. With all the life insurance options available today, it can be difficult to decide which type of insurance is best for you. Our friendly agents can review the options with you and help you find the best rates on a life insurance policy that fits your long-term goals.