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Making Sense of Life Insurance for the Single and Dependent(less)
One of the biggest misconceptions about life insurance is that it’s only a suitable solution for someone that may leave behind a spouse and/or children after they pass away. The reality of the situation is that life insurance is a product appropriate for everyone, even if you are single and have no children.
Family
If you do not have a spouse and/or children, the probability of you having additional discretionary income is probably pretty high. Therefore, now makes the perfect time and opportunity to build a life insurance policy into your budget. Even though you may not have dependents now, there’s a pretty healthy chance that you will have some in the future, whether that be a spouse, child, or family member.
Worst-case scenario, you can breathe a sigh of relief knowing that your future dependents will be taken care of because of the responsible decisions you made when you when you were but a mere “table for one.”
Affordability
The younger you are, the least expensive it’ll be to bind an insurance policy. Side note: Life insurance policies are based on age, health, and gender. Research shows that usually the younger you are, the healthier you tend to be. With that said, if you can get a life insurance policy when you’re young, you’ve probably got at least 2/3 of the equation in your favor—age and health. So, why not start now and secure life insurance while it’s least expensive to do so (when compared to what it’ll cost you in five or 10 years)? Don’t take the path of some 20-somethings who are frivolously charging up their credit card with materialistic belongings and taking extravagant vacations with no fortitude; instead, put some of your earnings into a permanent life insurance policy, while you can afford it. An added bonus is that part of your permanent life insurance premium accumulates for cash value—much like a savings account.
Responsibility
If you are taking the route of a bachelor/bachelorette (i.e., unmarried, no children), may we recommend finding a policy that will cover your basic necessities such as funeral costs, credit card debt, and any outstanding student loans? Too often, we think that when our life is over, our debt is automatically “written off” or “forgiven,” but we need to realize that, ultimately, someone ends up paying for it.
Legacy
In the unlikely event that you have absolutely no one in your life such as parent, spouse, child, niece, or nephew to serve as a beneficiary; why not donate the funds to a charity that is near and dear to your heart? Imagine yourself not being able to contribute as much as you would like, to an organization due to financial restraints. Next, imagine the positive impact of a large donation being donated to an organization on your behalf. The cure to cancer could be attributed to your life insurance inheritance!
Whatever path you travel in life, the thing that remains a given is that death is inevitable. That poses a good reason to ensure that your dependents—whether existent now or a future consideration—are taken care of with a life insurance policy that you started years before, when it was inexpensive.
Start now; someday someone will be thankful you did!
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InsuranceJoan Cleveland, CLU, ChFC, REBC
Joan Cleveland, CLU, ChFC, REBC leads SWBC Life Insurance Company as President and CEO. With more than 30 years of experience in the life insurance industry. She holds her Agent licenses for Life, Accident, Health Insurance, and has multiple FINRA securities Licenses. Joan is a frequent industry speaker and media spokesperson. She is a member of the Board of Directors of the Consumer Credit Insurance Association, the Texas Association of Life and Health Insurers, as well as the Life Insurers Council. In addition, she is chair of LIMRA’s Strategic Marketing Issues Committee.
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