When most people think about getting life insurance, they most likely think of it as a way to protect their family in case of death.
But what if you’re single? Can you benefit from having a policy if you don’t have a spouse or children?
As a matter of fact, you can. Here are several scenarios where having life insurance can be a smart decision for single people.
Supporting Your Loved Ones Financially
Even if you don’t have children or a spouse, there are other people in your life who may rely on you financially. Whether it’s your parents, siblings, cousins, or other relatives, your life insurance policy could help them out when you’re no longer around.
All you would need to do is name them as your beneficiaries and make a will to ensure your wishes are respected when you’re gone.
Paying off a Mortgage
If you’ve taken out a mortgage to buy a home, a life insurance policy could help pay it off in case of your untimely death.
Now, your lender can’t pursue your surviving family members to pay off the mortgage if you pass away. However, they have the right to cover the outstanding loan balance from your estate and even sell your home if the estate isn’t enough to make up for the difference.
Life insurance prevents these problems, which can be especially beneficial if you don’t live alone. If you name the person you live with as your beneficiary, they could pay off the rest of the mortgage and keep the home.
Paying off a Cosigned Loan
If you’ve cosigned with someone to get a loan, they would be stuck with paying it off on their own in case of your unexpected death.
For instance, if you’ve taken out a mortgage with your sister, or a car loan with a cosigner, they would need to deal with paying off the debt in full.
Getting life insurance and naming your cosigner as your beneficiary would help them cover the debt and have a peace of mind. Depending on the policy, they could pay off the entire debt, or cover only your share.
Covering End-of-Life Expenses
No one likes to think about end-of-life expenses, but making plans in advance can protect both you and your mourning loved ones financially.
Even a simple funeral can be expensive, and your loved ones would have to foot the bill if you don’t have life insurance.
End-of-life expenses also include medical bills and the costs of in-home care or nursing home care. If you develop a terminal illness, your life insurance policy would provide the necessary coverage.
Helping a Business Partner
Another situation where getting life insurance can be smart is when you have a business partner.
Your premature death could be a major financial setback for the business, especially if it’s a startup or the company is in debt. Your life insurance coverage could help your partner overcome the challenges and keep the business running.
As you can see, life insurance isn’t only for those who are married and/or have children. It can be beneficial to single people as well if a worst-case scenario happens.
If you decide to take out a policy, Melton McFadden is here to help you get the right coverage for your needs. We’ve partnered with leading insurance companies to provide the best policies at the most competitive prices.
Contact us anytime to consult with an insurance professional and get a quote.