There are many misconceptions about life insurance, starting with the all-too-common assumption that it is an investment product made with married people and parents in mind. The implication of this myth is that single, childless people are alone in the world and have no family connections that they might wish to protect—which is, of course, erroneous. If your death would impact anyone else, in any financial capacity, then you should at least think about life insurance. And that’s most of us.
This is not to say that life insurance always makes sense for single people. As with any other investment product, it is best to consult with a financial advisor before making any big decision. However, it is good to remember the point of life insurance—primarily, to prevent your loved ones from being financially burdened in the event of your passing. And again, that is something that most of us are passionate about.
Why Life Insurance?
But what are some of the specific reasons why the young, the single, and the childless might want to consider life insurance? Start with your end-of-life expenses. None of us are invincible, and were something tragic to befall you that led to your death, you would probably leave a lot of expenses behind—an unpaid mortgage, student loan debts, car payments, funeral payments, burial expenses. Life insurance helps you make certain that your relatives do not end up shouldering those financial burdens.
Something else to consider is your legacy. Often, life insurance is used to leave financial assets for children or spouses. You may not have children or a spouse but you probably do have brothers, sisters, nephews, nieces, or other loved ones to whom you would love to leave something. In lieu of that, you can also leave a legacy to a charity or non-profit that you care about.
Another point in favor of buying life insurance when you are young, and unmarried: When you invest in life insurance early on, it ultimately protects your insurability later in life. Basically, you ensure that later health issues will not prevent you from getting affordable life insurance when you really feel like you need it.
A Versatile Product
Ultimately, life insurance is a versatile product—not just a way to provide for children or spouses, but something that can provide options for the rest of your life as well as for your passing.
Again, it is not necessarily for everyone—but neither is it only for those who are older, those who are married, or those who have children. Contact a Stonepath Wealth Management advisor today to speak more about life insurance.