marc firestone: 6 reasons single people may need life insurance
Post on 12-Apr-2017
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6 Reasons Single People MayNeed Life Insurance
MARC FIRESTONE
When we are young and healthy and single, buying life insurance seems like the farthest thingfrom our minds. Why worry about purchasing life insurance when we are virtually invincible
and have no one to care for, right? Well, maybe not.The following are six reasons why purchasing life insurance is a good idea even for single people:
1) What You Get from Work Is Not Enough
Most companies will give their employees a life insurance policythat is equal to their yearly salary, or at most that doubles their
yearly salary. Financial planners recommend that a person’slife insurance policy be at least 10 times their annual salary.
2) You Can Afford It
The number one reason that people, especially young people, give for not purchasing lifeinsurance is that they cannot afford it. Many millennials mistakenly believe that life
insurance policies are a lot more expensive than what they really are. In most instances, a lifeinsurance policy is going to cost less than what you pay every month for your cell phone or for
your cable-television!
3) It’s Easy for You to Understand
Another objection people throw out when talking about getting lifeinsurance is that it is so complicated they will never understand it, and theydon’t want to throw their money away on something they don’t understand.But the truth is that insurance policies are very simple. Boiling down to themost broadest terms, when you buy insurance, you have two options. You can
either get permanent life insurance or term life insurance.
4) It’s Cheaper the Earlier You Start
The sooner you buy life insurance, the cheaper the policy is. If you buy a life insurancepolicy for a quarter of million dollars, it’s a 20 year term policy, and you are 25
years old, you’re going to pay in the neighborhood of $15 a month for your insuranceas long as you’re healthy. However, to buy that same policy at age 50 is going cost you
almost $50 a month. The older you are, the higher the premiums.
5) You Want to Protect the People You Love
Even single individuals have people they care about. Think about this, if your life was toend suddenly, who would have the responsibility of caring for your end-of-life needs? It
would fall on your parents, would fall on your friends, would fall on the people youlove? Do you really want them to be worrying about getting the money together to pay for
your burial and cover other expenses while at the same time grieving for your loss? Ofcourse not. For this reason, life insurance makes sense.
6) You Have Student Loans
Life insurance can help cover the debt you leave behind. Some loans, likegovernment provided student loans, may be discharged after death. But otherloans, like those taken from private institutions, may be assigned to your
parents, especially if they cosign for you.
When you buy life insurance, you show that you are a loving, caring,responsible adult. You protect the people you care about. You leave them with a
security net that they can use to go on with their life after you are gone.
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