Do I Need Life Cover If Single? – Choose Best Life Insurance for Singles
Why even single people need life cover? Life insurance is not a monopoly of married person only. It also benefited for a single person also. Some people believe that if a person does not have spouse or children, he needs not life insurance. Generally, a young, healthy and alone person doesn’t think about accidental death. They are not serious about life insurance, long-term benefit, and financial security planning.
Very few single people really not need life insurance because the percentage of really alone people who don’t have even one beloved is very small. The need of life insurance is so much, just for say, debts, mortgage, funeral, car and other expenses. It is a tax-free legacy for family members, nieces, nephews, favorite charities and many others. A single policy is always available in which a policy holder has to pay lump sum amount to the organization or trust and it will create an income source for rest of the life.
Select best life insurance for singles too, because it protects future insurability. Purchasing at a younger age will cost at the cheap rate and eliminates the risk of future health issues. Depending on the policy, life insurance plan helps in many ways. For example, if a person has $500,000 whole life plan for 20 years and he cashed it today, then he would have earned over 4% per year cumulatively. The benefit is that suppose he had become disabled, still, the insurance company would have paid premiums for him and he will have available cash. And if a person would die, his beneficiaries would receive over $500,000 without any tax.
Generally, there are two types of life insurance where term insurance provided for a specified period, and whole life which is also known as cash value or permanent insurance, provides coverage for entire life. Many times, employers themselves provide life insurance policy to their employees. If you are not provided by your employer then the best way is to buy from outside. According to experts, buy life insurance policies only from companies that are highly rated by agencies like AM Best and Standard & Poors.
The policy should be bought in accordance with age, health, habits like smoking, drinking, state, gender, type of occupation, driving records and credit rating. Habits like smoking and drinking add 30% to 40% cost of the premium. If we see the gender then women have to pay less than men and younger people also pay less premium. Risky occupation and low credit rating turn into the higher premium.
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