Thursday, January 30, 2014

6 Tips For Single People To Get The Most Out Of Life Insurance




If you are unmarried and don't have any dependents, you might consider life insurance a luxury instead of a necessity. In your life and particular situation, life insurance may be the furthest thing from your mind. It simply doesn't take precedent or have high priority in your life. But there are a few reasons why this is not the right way to go about it.

Not everyone needs life insurance – sure.  But one thing is for certain: everyone should at least be thinking about life insurance early on in life.  Because if you don’t know the facts and the possibilities, you cannot make educated decisions about your long-term financial plan, and that can be downright dangerous.

Let’s look at some tips and points of interest when shopping for life insurance as a single adult.

Protect Your Insurability

It’s important to mention one of the greatest incentives for purchasing life insurance when you are young and single; simply put, life insurance is cheaper when you still have your health and vitality.  As you age and health declines, the ability to get these cheap rates disappears – get a head-start and lock in your rates, especially if you plan on getting married and think you’ll have dependents later on.

Term Life Is Always Good For Young People

Term life insurance is typically the best buy for young people who haven’t yet reached the peak of their earning power.  It’s enough to solve any immediate needs should something sudden and tragic occur, and it is very affordable – term comes with no cash value but is guaranteed for the life of the term stated, whether that be three or 30 years.

Consider Term Life With A Conversion Option

Here’s a hot tip: get the best of both worlds by purchasing term insurance with a conversion option.  This allows you to access a dependable term plan now at affordable rates, and then later on when you’re making more money you can convert to a permanent insurance policy.

"Insure" Your Debts

One neat use of a life insurance policy for a single person is to “insure” your debts.  For instance, if someone close to you has co-signed on a house or car for you or is tied to your debts in some other way, the last thing you want to do is leave that hanging over their head when you go.

Behavior Is Your High Leverage Variable

This is an extremely important point for young people. The most easily-controlled variable concerning the cost of your insurance policy is your lifestyle and consistent behavior.  For most of us, basic good health comes along naturally with youth, but if you drink to excess, smoke on a regular basis, drive irresponsibly, and engage in dangerous avocations (sky-diving, stock racing, rock climbing, etc), you can expect to pay higher premiums.

All are high-risk variables that make it more costly to insure your life.  The most obvious way, therefore, to get a cheaper policy is to change these behaviors.

Single Parents and Older Single People

Do you have children?  If so, life insurance may be even more important for you than it is for a married couple, as an unexpected tragedy could leave your child on his or her own.  Life insurance can provide a future even if you’re gone.

As far as older singles go, insurance money can help to leave something behind for grandchildren or provide for long-term care.  Many choose to start an education fund for their grandchildren.

 Want to learn more about how life insurance can be beneficial to you, no matter what your marital status is, then give us a call her at The Storick Group at 800-301-8113 or if you want a life insurance quote, visit goldcoastlifeinsurance.com 




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