Single, Married or Building a Family? Why Having Life Insurance Can Help Smooth The Path To Financial Security – Part 3: Life Insurance for Singles
So far in our blog series on Life Insurance, we have discussed the importance of securing a life insurance policy if you are married or in a long-term committed relationship, and/or a parent. We also addressed some of the most commonly held misconceptions about life insurance, including the belief that it is expensive, complicated, and time-consuming to purchase. These are just some of the reasons many people, no matter what their age or lifestyle, choose to put off, or sometimes completely ignore, the importance of buying life insurance.
At Bearingstar Insurance, we passionately believe that life insurance is extremely important to have – and worth the time investigating – no matter what chapter of your life you find yourself in today, including if you are single. Life insurance deserves careful consideration because it is:
- One of the most important things you can do to ensure your future financial stability
- Extremely affordable especially when you consider the value and peace of mind that it provides
- A smooth, easy, and comfortable buying process if you work with knowledgeable and proactive insurance professionals
LIFE INSURANCE FOR SINGLES
If you are single, welcome to the “in crowd”. Today, there are more single American adults than people who are married. Regardless of whether you’re just enjoying being single for the moment or you have officially decided that living happily single is how it’s going to be for the long-term, you probably have made hundreds of relationships, connections and activities that keep your schedule very busy. So, it’s very likely that if something were to happen to you unexpectedly it would have a huge ripple effect on all the people that have come to care about you.
With that in mind, here are Bearingstar’s best reasons why being single and having a life insurance policy makes really good sense:
- You can leave a tax–free legacy. Think of all the important people in your life – like siblings, nieces, nephews, or children of close friends – as well as charities or organizations that mean a lot to you. At your end-of-life, a life insurance policy is a way for you to leave anyone or anything that you care about a lump sum of money or provide an income stream for as long as you wish.
- You can protect your future insurability and get the most affordable rates. No matter what age you are, life insurance purchased today is always going to be a lot cheaper than if you wait. Locking in your rates when you are in your 20s and 30s, and single, can mean you pay as little as $10/month for a term life insurance policy, depending on the amount of coverage and length of term you choose. So, for the same monthly cost of a subscription to Netflix, you can have the protection of a life insurance policy in place for decades to come plus save yourself hundreds of dollars in life insurance costs. And, in case cupid’s arrow does strike you in the future, having life insurance prior to being married allows you to just build on your existing coverage once you get hitched, instead of initiating coverage when it’s likely to be more expensive.
- You can invest in yourself! Depending on the type of life insurance you buy, a policy can also serve as a vehicle for savings and sheltering your money. For example, if you were to purchase a whole life plan, your premium would include an insurance and an investment component. The investment component builds an accumulated cash value that you, the insured individual, could borrow against or withdraw tax-free. This could come in very handy if you need more cash flow later in life or should you become disabled. In addition, this type of cash value life insurance policy is another option for you if you make an income too high to qualify for a Roth IRA. Instead, why not redirect your money to a life insurance policy, where you can earn a tax deferred accumulation of dollars that comes out tax free as well. If you are still holding this policy upon your passing, any named beneficiaries will get substantially more financial stability from a Whole Life policy than with a traditional Term Life policy.
There is one more life insurance benefit for you to consider if you are single. Whether it’s due to an unexpected event or natural causes, when your final single days are over, expenses related to end-of-life can be fairly burdensome to family or friends left to take care of your estate. If you want to ensure that funeral-related expenses can be paid along with lawyer and other administrative fees involved in settling an estate, plus have money left over for allowances to your loved ones, we strongly suggest you discuss a life insurance policy with a Bearingstar professional.
We have much more information that we would like to share with you in order to help you better understand life insurance basics and beyond. More important, working with the local team at Bearingstar Insurance, you will find that the process of getting the right life insurance policy for your needs will be simple and cost-effective. Contact us today for more information or visit us at any one of our convenient Massachusetts or Connecticut offices.
Life Insurance Policy Types That Singles May Want To Consider.
We Hope This Brief Explanation Will Make The Insurance Process Simpler For You!
- Term Life – This policy offers coverage for a set amount of time with a fixed price for payments made monthly, semi-annually, or annually. This policy type may be a good option for you if you are single and need a large face value for a limited period of time or if you are younger and budget-conscious. Premiums start low, but may increase at each renewal. Term Life coverage is usually renewable until at least age 70, but some policies are renewable up to age 95. At the end of the agreed upon term, you will usually have the opportunity to convert part or all of the policy to whole life insurance or to renew it for a shorter term, but at a higher price. There is also no cash value at the end of the agreed upon term. Finally, the death benefit is guaranteed and can be increased or decreased at any time.
- Whole/Permanent Life – This policy type has both an insurance and an investment component. The investment component of your premium builds an accumulated cash value that you, the insured, could borrow against or withdraw tax-free. You will pay the same premium from the day you make the purchase until the day the policy matures, or you are deceased. If you are single, you may want to choose this policy type for many reasons. Perhaps you want to provide a continuing death benefit for siblings, nieces, nephews, or children of close friends while continuing to build cash value. Or, maybe you are not able to get any other type of policy due to health issues. Or, you could simply want to avoid spending the time it might take for health underwriting. Regardless of the reason you choose this policy type, your premiums remain level throughout the entire time you hold the policy and coverage is for life; most policies mature at either age 100 or 120. The death benefit is guaranteed but it varies relative to the cash value of returns on your investment. There is a guaranteed cash value that fluctuates with the underlying investment performance as well.
One of these policy types could be the right life insurance option to meet your needs while you are single, but which one? The first step towards ensuring that you choose the optimal policy is to work with an insurance agent who will take time to understand your financial situation and explain all your life insurance options in easily understandable terms. For help finding the right life insurance policy for your unique life, please contact Bearingstar Insurance.
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