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6 Reasons Single People Need Life Insurance

If you’re young, healthy, single, and have absolutely no dependents, life insurance may seem like an unnecessary expenditure. But have you thought about how you might create a legacy for yourself after you’ve passed? Are you currently paying down jointly owned debt? And who’s going to pay for that Pink Floyd tribute band you’re hoping will play "Shine on You Crazy Diamond" at your funeral? With these questions in mind (even if you’re not a Pink Floyd fan), take a look at these six reasons why you, a single person, might actually want to consider purchasing life insurance.

  1. Funeral expenses:

    The No. 1 reason to consider buying a life insurance policy, even if you’re single, is funeral expenses. Even a simple ceremony with a casket can be costly and, unless you set aside money for the expense, may present a financial strain on your friends and loved ones. Cremation is much less expensive, but can still cost $1,500 to $4,000. A small life insurance policy can help cover some if not all of these costs.

  2. Debt:

    If you are a joint debtor with a family member or friend and die before that debt is paid off, that family member or friend will be responsible for whatever debt remains. If you are the sole debtor, any debts you have are usually paid by your estate. A life insurance policy can be used to pay joint or sole debts if you die before they are paid off. Naming a joint debtor as a beneficiary may provide enough funds after you’ve passed to pay off the remainder of whatever amount you owed.

  3. It can benefit your parents:

    It’s probably hard for you to imagine leaving this world before your parents, but it can and does happen. Folks are living longer these days, and healthcare is still quite expensive, and many children of senior parents are finding they have to plan for the possibility of not being around to care for an aging parent. Naming your mother or father as a beneficiary of a life insurance policy will provide them with some financial assistance in the event you pass before they do.

  4. It may be cheaper to buy now rather than later:

    Generally speaking, it will be easier for you to purchase life insurance at a reasonable cost when you are young and relatively healthy as opposed to when you are older and less healthy. If there is a history in your family of cancer or heart disease, it may be to your benefit to purchase life insurance now when its less expensive and before you become (and we hate this word) uninsurable.

  5. You can leave a tax-free legacy:

    You can use a life insurance policy to leave a tax-free legacy to your favorite charity, museum, or other non-profit organization. You can choose to distribute the money as a lump sum or have it paid to a trust creating an income stream over a predetermined period of time.

  6. Life insurance is very affordable:

    One more reason you might consider life insurance is the fact that it is generally very affordable for young, single people. Your employer may even offer free or discounted life insurance coverage. When shopping for life insurance, get as many quotes from as many different companies as possible, and be sure to buy a policy that truly covers your specific needs.

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