Many misconceptions have been noted over the years concerning life insurance and one of those is thinking that being single is not a reason to purchase a life insurance policy. Though it may be difficult to talk about, your life may just have some impact on others when you die. Rarely are we left totally alone. You may want those that you care about not have to worry about the funeral expense or other debt.
Just because a marriage may not exist, you may have someone close to you that shares the expenses of daily life. If something unexpected happens, you can still designate someone you care about to help continue to take care of additional expenses that may occur. It is also a tax-free legacy to leave to other family members such as nieces or nephews.
If you are involved in volunteering for a charity, you can arrange to give the gift of life insurance. Most charities will list the client as a donor of the amount of the death benefit, but the client only pays the premiums,” said Herb Daroff, director, estate and business planning, Baystate Financial Services, in Boston.
Small Business Owner
What would happen to a partner in that business? According to LIFE, a life insurance policy can be structured to fund a buy-sell agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed price.
Generally we talk about Roth IRA, 401(k)s , stocks and bonds, but we do not think about life insurance as a part of our financial planning. But whole life, for example, purchased by a parent can actually help contribute to a son or daughters college education. If you purchase a whole life policy in your early 20’s, you may be able to pay off debt or buy that new home ten years later.
If you are young and healthy, this is the best time to be accepted and afford the great rates. Another reason to consider life insurance today.