Life insurance isn’t just for those married with children, single adults without children can benefit from it, too. When you’re single, healthy, and childless, a life insurance policy is probably the last thing on your mind. You might think that buying coverage is just another unnecessary expense; however, there are plenty good reasons why it could make sense for you:
• You have cosigned debts. While it’s a fact that federal student loans are discharged in the event of the borrower’s death, it’s not the case with private student loans—especially if you have cosigners. This applies to other cosigned debts such as mortgages, car loans, or credit cards. Your cosigners will bear the financial responsibilities that could be covered with the proceeds from a life insurance policy.
• You own a business with a partner. Life insurance can be the cornerstone of a business’s succession plan. In your absence, it can ensure a smooth transition and increase the longevity of the business you’ve worked hard to build.
• You want to leave a legacy. At some point, you may want children or you may end up caring for your parents, grandparents, or non-biological children. If you name them as your beneficiaries, the policy could help them cover everyday expenses if you were no longer around. You could also continue giving and provide a lasting legacy by naming your favorite charity as your beneficiary.
Life is unpredictable and has a way of changing fast. Life insurance is about protecting what’s important to us. We’re all leaving someone behind, and burdening loved ones with financial liabilities is probably the last thing we’d want to leave them with. Whether you’re single or not, chances are that you may relate with at least one of the scenarios above.