Life insurance is not usually something single people without children or a house ever think about. Increasingly this section of society are exploring life insurance and other form as personal risk, especially those who have gone through tertiary education and have large education debt that will take a number of years when in full employment to pay off. Single people do worry about the family they leave behind, and any costs that they’d incur if something happened to me.
If you’re single, here are a number of reasons why life insurance might be beneficial, even necessary, for you.
1 If Someone Has a Guarantee On Your Loans
If you took out any loans over and above your student loan such as a car loan or even a mortgage for your first home with say a mate, your loan guarantee ( probably mum or dad ) that person will be responsible for paying them back if you pass away.
For most young people, their major debt is their student loan. Having your parent’s pay those back after you’re gone is not the reminder you want to leave behind. If this is the main reason that you’re signing up for life insurance, then you can cancel your policy once your loans are paid off.
- If You Want to Leave Something Behind
If you can’t afford to donate much to charity while you’re alive, then naming a charity as the beneficiary of a life insurance policy is one way to ensure that your death will not be in vain. It’s an easy way to make sure that your money will be going to an organization that you really care about.
You can also designate a close relative as the beneficiary. Carefully choosing one or multiple family members could provide a thoughtful benefit down the road.
- If You Want to Safeguard Your Family’s Future
Straight forward life cover is the simplest type of permanent guaranteed life insurance. It can help you protect your family in the future. You can choose a level premium or have step premiums that increase as you age
With level cover your premiums and death benefit stay constant for the duration of your life policy (often up to age 70). That means you likely won’t have to worry about cost increases as you get older.
In summary don’t discount life insurance policies just because of your age. Planning early can be smart in the long run. Not only are you helping to protect your loved ones – parents, siblings or a spouse- from potentially burdensome expenses, but you may benefit from lower premium rates and starting a financial plan at a young age.
You may want to talk your life insurance options over with an insurance broker who can help choose the right policy for you. PIC Insurance Brokers has an expert team of Life Brokers, contact us now on 0508 742 742 or click here for more information.