Most financial experts say that life insurance is a cornerstone of solid financial planning as it protects dependents from financial ruin after the death of a breadwinner.
But even if you are single or don’t have dependents, it can still be a valuable component of your financial planning and safety net.
1. Life insurance replaces income for surviving family members or 
dependents ― If you have others who depend on your income, it is important that you have a plan to continue providing for dependents in the event of an untimely death. This is especially important for families with young children and a spouse who stays at home to care for them.
It can also be important for couples. If one person earns more, the survivor will likely face financial hardship in meeting monthly obligations.
In addition to this, people who provide financial support to their aging parents should also consider using life insurance to make sure they receive the continued support they need if their support person is not available.
2. Life insurance builds an inheritance for heirs — For those who want to pass something on to heirs but do not have many assets, life insurance is an easy way to do that.
By naming specific heirs as beneficiaries, the named individuals will receive the money the policyholder wants them to have.
3. Life insurance pays for final expenses — With the price tag for most funerals hovering around $10,000, it is important for every person to have at least enough life insurance to cover final expenses.
These can be quite burdensome to survivors, but life insurance makes it easy for family members to pay probate costs, administrative costs and funeral expenses.
4. Life insurance covers death taxes — Yes, death triggers a taxable event. It’s taxed at both the federal and state levels. Without coverage, survivors may have to sell the deceased’s assets to pay for these costs.
In some cases, they may have to take a smaller inheritance as a result.
However, life insurance can be used to cover these taxes and take the burden off of survivors’ shoulders.
5. Life insurance builds savings — There are types of life insurance that have a “cash value”. If this amount is not paid out as a death benefit, it can be withdrawn or borrowed by the policyholder during their lifetime. And the interest is tax-deferred. For sums paid out as death benefits, the interest is tax-exempt.
6. Life insurance makes charitable contributions possible — If you name charities as beneficiaries on your policies, you can provide them with more money than you may have otherwise been able to pay out of pocket.
Many single people who do not have dependents or family members to name as beneficiaries often choose this option to leave a positive legacy and their mark on the world.
The final word
Life insurance is something that can benefit any adult regardless of age, marital status or family status. To learn more about what options best fit your individual needs, speak with Erica Skog or Mary Jakeway at call 844-573-8089 today. They’re our life insurance “special team” members and are waiting to serve you.