Why single people may need term life insurance, too.
Lots of people first consider life insurance when they have kids or start a family because this type of insurance replaces lost income if they were to pass away. It’s a common misconception to believe that life insurance is only for people with spouses that rely on their income. There are many reasons why you might need life insurance if you’re single.
You’re a single person with dependants
When an individual, especially a single person, has a dependent, the need for life insurance grows greater. Whether you have children or an elderly parent that you care for, ensuring that they have financial support when you are gone is imperative. If there’s someone in your life who relies on your income, purchasing a life insurance policy can be an important source of protection and peace of mind.
Your parents guaranteed your student debt
Paying for college is hard. Federally funded loans get discharged if you die before you can pay them off, but if your parents cosigned a loan for you, they could be left on the hook to pay the bill. If your parents have other financial obligations, like helping your siblings pay for college, getting hit with unexpected debt can turn into a serious financial problem. Life insurance can step in to help alleviate this pressure when you’re gone.
You own a house
If you’re a single homeowner with a mortgage, consider purchasing life insurance that will cover your payments. Federal law allows the ownership (and remaining mortgage balance) to transfer to one of your relatives if you die. That relative would have to decide whether to make payments, refinance the mortgage, sell the house or allow the home to be seized by the bank. Life insurance with a payout large enough to pay off your mortgage balance would remove the pressure on your loved ones.
For more information on how you can get the correct amount of life insurance coverage for your needs, contact the Bristol team at C.V. Mason Insurance Agency.