| Home | About Us | Contact | Privacy Policy | Sitemap | Articles | Save This Site |
|
Many young single individuals believe that life insurance is a waste of money. They may wonder why they need to purchase a life insurance policy if they have no dependents. However, this is a misconception. If you died tomorrow, who would take care of all of your expenses? Your family members could face a huge financial burden if they suddenly have to pay for your outstanding debts, funeral expenses, etc. Purchasing life insurance when you are young and healthy is also much easier and cheaper than waiting until you are older.
In order to help you make a decision about the type of life insurance to buy, we’re going to discuss the basics of whole life and term life coverage. Set Affordable Premiums When You Are Young & Single When you purchase a term life insurance policy, you can set your premiums for the lifetime of the policy. In the case of whole life insurance, your premiums will remain constant for your entire lifetime. Therefore, you may end up paying the same rates as a healthy thirty-year-old many years after purchasing a life insurance policy, even if you get sick. Knowing how much your premiums will cost can also be very helpful; budgeting will be easier if you don’t have to worry about paying higher premiums each time you renew your insurance policy. Protect Your Family If You Say Goodbye to the Single Life If you purchase a life insurance policy when you are still single and later decide to get married or have a family, your family will be protected. This will shield your family members from a possibly devastating financial burden if you happen to die unexpectedly. Invest In Your Future with a Cash Value Insurance Policy Purchasing a life insurance policy while you are still single also represents an opportunity to invest in your financial future. Whole life insurance enables you to build a cash value. You can decide to borrow against the value of your policy if you want to purchase anything from a new home, vehicle or university tuition. Depending on your financial circumstances, you may also choose to cancel your whole life insurance policy and obtain the balance in the form of a lump sum payment. What Kind Of life insurance Is Best – Term or Whole Life? As you can see, there are many reasons why you should invest in a life insurance policy when you are single. The problem may be deciding which type of insurance policy to purchase. Whole life insurance: If you don’t have any dependents, it is usually best to purchase a whole life insurance policy. This type of policy will help your family members pay for funeral and medical expenses when you die. Whole life insurance also provides you with lifelong coverage, as long as you make regular premium payments. Term life insurance is normally not required if you have no spouse or children who may suffer financially when you die. Term life insurance: However, you may want additional future coverage if you later decide to raise children. Or perhaps you want to defer the risk of a large temporary debt such as a mortgage or car loan. If so, you should consider purchasing term life insurance. Although the coverage is only valid for a specified period of time, the premiums are lower and the coverage amount is normally higher than whole life insurance. Combine Term & Whole life insurance: Another option is to purchase a whole life insurance policy that will provide you with affordable premiums and lifelong coverage, supplemented by a term life insurance policy to protect you in case you later decide to get married or have children. Being single is no excuse not to purchase some type of life insurance policy. You can decide whether it makes more sense to purchase a whole life insurance policy that offers lifelong coverage, or a cheaper term life policy that provides temporary coverage. Sometimes, you can enjoy the best of both worlds by purchasing both types of life insurance. Either way, you’ll pay lower premiums if you buy life insurance when you’re still young. More importantly, you’ll protect your financial future and that of possible future dependents! |
|
|
