Single and childless? You still need life insurance
Single people usually don’t need life insurance because no one depends on their income, but there are times when it’s necessary to have one.
Single people are under the impression that they do not need life insurance, especially if they don’t have children. Yet, life insurance is not only meant for married couples and parents. Here are some ways in which life insurance can still benefit you:
It helps you plan for the future
The earlier you start, the more you save, and the cheaper insurance is, says Mike Luyt, senior strategic and intelligence analyst for Metropolitan Retail.
If you wait too long to buy life insurance, your premiums will be more expensive as you may not be in good health anymore.
According to Luyt, as you get older you may get too sickly to be insurable. In some instances, the insurer may give you cover but may charge you an exorbitant premium or even exclude death from the condition you’re suffering from.
Even if you don’t have children now, you don’t know what the future holds.
“Cover yourself now while you still qualify for affordable coverage, ensuring low premiums if and when you decide to start a family,” says Luyt.
It protects your salary
If something happened to you and you couldn’t work anymore, you would want something to replace the salary you lost, right?
Gretchen Pletschke from IndieFin says there’s income protection and disability cover for this. She says you can use these as your gateway to life insurance as it requires no family nor dependants.
It serves as security for your debt
If you are buying a house or applying for a loan, your credit provider will require credit life insurance to insure your debt should something happen to you, according to Pletschke.
Normally when you have debts and you pass away, your estate proceeds are used to settle them. However, when you have life insurance, that can be used to cover these debts.
It makes business sense if you have a business
If you are part of a joint financial venture, it can also provide protection. When you die or are unable to work, your business partner may struggle to keep the business afloat without your contribution.
According to Matthew Kloos, chief financial officer at CompariSure, having the appropriate life insurance in place will ensure that the livelihoods of all those dependent on your business will be protected.
It ensures that your loved ones are taken care of when you die
You may not have dependants, but you may be sending money to a relative e.g. a parent or a sibling. Having life insurance will make sure they are not deprived of your financial help when you are gone.
It helps your family pay for your funeral expenses
When you pass away, someone will need to pay your funeral expenses. Therefore, having life insurance will ensure that the people you leave behind are not left in debt or wondering how they will cover your funeral expenses.
This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice.The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.