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Single People need life insurance: 6 reasons why

Many people make the assumption that life insurance is for married couples and those with kids. While it is true that not all single people need life insurance, there are a number of reasons when it can make (really) good sense.

1. You have student loan debt. Many people assume that your debt dies with you, but that’s not always the case. While the loans through the federal government are discharged (aka forgiven) if you were to die, personal loans that have a cosigner are generally not. That means if your parents, for example, co-signed your student loan through a bank, they would be responsible for paying the rest of the loan if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your parents dealing with grief and loan payments.

If your parents co-signed your student loan through a bank,
they’d be responsible for paying the rest of the loan if something happened to you.

2. You’re living with your significant other. When you’re living together, a lot becomes shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if one of you dies prematurely? Would the other partner have to sell up? Find a new place to live immediately? And this is just one example of many shared financial responsibilities couple have. Adequate life insurance is an easy answer to those questions.

3. You plan on having kids … someday. It may not be now, but when kids do come, so do the expenses and bills. According the USDA, it costs $245,340 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future. … and that leads us to the next reason.

4. You’re young and healthy. Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a low price if you have both of those working for you? Did you know that a health 30-year-old can get a 20-year $250,000 term life insurance policy for about $13 a month? Doable, right? Don’t wait until a health issue or age puts life insurance out of your reach.

5. You know you’ll be taking care of family members in the future. This may mean aging parents or perhaps you have a special-needs sibling that you help care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future. This is where it might be wise to consider a permanent life insurance policy (one that’s there for your lifetime, as long as you pay your premiums).

6. It will pay for your funeral. No one likes to think about such things, but the truth is if you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, partner or other family members struggling with grief as well as paying for a funeral and burial, which can cost an average of $7,100.

Getting life insurance doesn’t have to be a daunting task. A life insurance agent can walk you through your options—free of charge.

SOURCE

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Should You Settle For A Term Life Insurance Policy?

Should You Settle For A Term Life Insurance Policy?

Price is always a consideration, even when insurance policies are concerned. This is why a term life insurance policy has become very popular in recent years. A term life insurance policy offered the same features and benefits of a conventional life insurance policy, albeit restricted to a certain term, hence the label term life.

A lot of people are settling for these types of policies these days, but should the term “settling” be the right word? A term life policy is replete with so much to offer for your stated beneficiaries after your death. Is it proper to say that a term life policy is a mere second choice then? Let’s take a deeper look at the intricacies of a term life insurance policy.

The Benefits Of A Term Life Insurance Policy

A term life policy is a very advantageous choice. This policy is bestowed with so many benefits that is worthy of serious consideration. Let’s study these benefits of a term life policy:

* The premium of a term life  policy is more affordable, hence, it has become a lucrative option for people wanting to avail of the benefits of a life insurance policy but cannot afford the usual monthly payments.
* A term life policy offers the same benefits for the beneficiaries of the insured, and in some cases, a term life insurance policy even offers more benefits for them.
* A term life  policy goes well with any financial plan. Parents, for example, can avail of a term life insurance policy that would guarantee their children’s education in the event that something happens to the insured parents during the term of the said term life insurance policy.
* A term life policy can be settled, or sold, by a person above 65 years of age or by an insured who is suffering from a terminal disease.

The Disadvantages Of A Term Life Insurance PolicyTerm Life Insurance Policy

This is not to say that a term life  policy is not without disadvantages. Let us take a look at the restrictions imposed on a term life policy:

* A term life insurance policy would only insure the person for a certain period of time. Once such period lapses, the policy must be surrendered.
* The grant of a term life policy may take a longer time to approve. Much study would be made by the company offering the term life insurance policy before any application may be granted.
* A term life  policy demands utmost honesty and good faith. You cannot lie on your application for a term life policy, especially with details about your medical history. Material concealment in the application for your term life policy would result in the cancellation of the same.
* The rejection rate is higher in applications for a term life policy.

The propriety of availing of a term life insurance policy would depend on your needs. You’d be able to work with the restrictive terms of a term life insurance policy, you’ll most certainly reap a lot of rewards from the same.

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Wondering About Whole Life Insurance

Whole life insurance is undoubtedly the most comprehensive and advantageous life insurance you could taken advantage of. When it comes to protection for the loved ones we will leave behind, permanent life insurance would have such a purpose fully covered. Not only that, a permanent insurance policy would also give you so many perks that can never be found in other insurance packages.

Whole life insurance is actually a combination of a life insurance and dividends.  Though this is indeed a program meant to assure the sustenance of our beneficiaries, a permanent insurance policy takes the form of dividends in spirit.

What Is Whole Life Insurance?

Whole life insurance basically insures a person for the entirety of his whole life. This policy will continue to be in effect for as long as the premiums are maintained. A premium, of course, is the amount you have to pay to sustain the death benefit. Usually, the premium is payable on a monthly basis.

The other exciting feature of a whole life insurance policy is that it is capable of building up cash value. This means that it build up dividends which will be added to the benefits that the policy  would award to your stated beneficiaries. If the insurance company is doing well, meaning, there are fewer mortality cases than expected, and if, as a consequence of this, the insurance company enjoys good business, then the policy itself would increase in value. This would be to your advantage.

Whole Life InsuranceThe Whole Life Insurance Difference

Basically, a permanent life insurance is a policy that never expires and one which will give out dividends whenever business is good. A straight life policy, clearly, is a better alternative than its counterparts. Permanent life insurance is not restricted to certain periods, life those found in term life insurance policies.

However, because of the thorough benefits of a whole life insurance policy, you would be expected to pay for a more expensive premium for the maintenance. This makes whole life insurance rather inaccessible for quite a number of people.

If you have the money to spare and invest for the future, then choices don’t come better than a whole life insurance. Life insurance would give your loved ones the protection they need after your passing, regardless of when you expire. This alone makes whole life insurance a great option worthy of your serious consideration.