This week of Life Insurance and Who Needs It focuses on singles. This category of life insurance seems to get swept under the rug, but it’s important to remember that singles also have a lot of financial responsibility that may become a burden for loved ones in the case of an accident. Here’s why singles need to consider opening a life insurance policy.
Insurance rates go up.
Understandably, life insurance may not be the first priority as a young adult single for the simple reason that you don’t have an obvious need for life insurance. That being said there’s a reason early adulthood is referred to as your prime. In fact, it is your prime time to get on a life insurance policy before rates go up due to your age or health conditions. The ugly truth is that the older you get, the more likely you are to contract a chronic illness and as a result, your rates will unfortunately skyrocket.
Funerals cost money.
At the risk of sounding too morbid, funerals are expensive, and your life insurance policy can take away some of the pain at least financially. According to the National Funeral Directors Association, the average funeral costs $7,181. With a life insurance policy, your family can focus on grieving rather than pinching pennies to fund the whole affair.
Debt doesn’t die with you.
Along the same vein, debt doesn’t evaporate, and in case of death, you don’t want to abandon your family with it. Debt can come in a lot of forms, but in today’s society, it’s easy to assume that a lot of young singles also have a lot of student debt. Again, a life insurance policy could assist with any debt you leave behind.