Most single people don’t need life insurance because no one depends on them financially, but there are exceptions. If you provide financial support for aging parents or siblings, or have substantial debt you wouldn’t want to pass on to surviving family members if you were to die prematurely, you may want to consider it.
You’re just getting started with you family and you may or may not already have kids. Now is the time to ask yourself some tough questions about your financial security: What would happen if you or your spouse or partner became sick, injured or worse? These scenarios could be devastating to your family’s financial health. Life insurance can provide your family members the resources to maintain their lifestyle. It can replace some or all of your income, pay off debts, cover funeral costs and can even help fund longer-range needs like college tuition for your children or retirement for your spouse. It’s also important to realize that stay-at-home parent provides vital and valuable household services—childcare, house upkeep and transportation to name a few—that would be expensive to replace.
The coming years will likely be the highest earning of your life. However, these years could also mean putting your kids through college or aggressively saving for retirement. These are critical times to protect your family if the worst happens and your income is no longer there to suport it.
It seems counterintuitive for empty nesters or retirees to need life insurance. Many still have financial obligations, such as a mortgage. Some still having dependents, such as disabled adult children. If a spouse died or becomes disabled, this could mean serious financial uncertainty. More importantly, if you died today, your spouse could outlive you by decades. Your death could reduce the Social Security benefits and bring unplanned medical and funeral expenses.
As a business owner, you’re responsible for the financial security of both your family and your business. Ask yourself: What will happen to my business and family if I die or become disabled? Also, is my family prepared to handle my business’s financial liabilities or debts. Life insurance is crucial for both your family and your business.