When it comes to life insurance, while many may think it is only needed for those who are married and have dependent children, it’s important to know that this affordable insurance is beneficial for people in other scenarios as well. Read on for some life insurance basics.
Whether you are single or married, younger or older—with today’s low premiums for the average life insurance policy, you can’t afford not to get it considering the peace of mind it provides. For example, unless you are living alone with no debt, assets or family members, if you were to die prematurely, the reality is there will be unexpected expenses for your remaining family. Just like a major household item breaking when you don’t have the money, you can’t afford to not get life insurance. Listed below are some additional scenarios where a life insurance payout would be beneficial in the event of your early death.
Single adult with no children- in some cases, single adults help their older parents financially and a life insurance policy will ensure there will be funds available for the parents to pay for funeral costs, any remaining debt and to continue receiving financial support.
Single parent– a life insurance payout can provide funds to the appointed caregiver who will raise the children. They will be responsible for paying funeral expenses in addition to child care, housing/ property taxes, living, health care and college costs.
Stay-at-home mother or father- if the other spouse dies early and is the main breadwinner of the family, it is important to have a life insurance policy in place so the at-home parent can pay off the home and continue paying living expenses without income coming in. If they choose to go back to work, they will not have to worry about keeping the bills paid as they do their job search and will have money available to pay for childcare if needed. Depending on the coverage selected, there can be money available to pay for college costs.
Parent with adult children– a life insurance payout can provide funds to the remaining spouse or adult children for funeral expenses. Moreover, the remaining spouse can have additional money to supplement their retirement savings plan.
Retiree—a life insurance payout can help the remaining spouse or adult children pay for funeral expenses, remaining debt or medical expenses, if applicable.