Life Insurance is one of the most important things you can purchase, even if you are single. Although you don’t have to plan for a surviving spouse or child, the burden of your funeral costs and burial might fall on your family. By having a solid life insurance plan, you will be making it a lot easier on your loved ones. The average funeral costs between $7000 and $10,000. Other than high costs of funerals there are several other reasons you should have life insurance as a single person.
Prepare for Your Financial Future
Many Utahans today are struggling with debt and having a hard time retiring because of poor financial planning. As a young, single person, now is the time to start planning for your future finances. Everyone should have some sort of retirement plan that includes a life insurance policy. It is a lot easier to get ahead of retirement by planning for it as early as possible.
Take Advantage of Tax Free Money
A whole life policy a fixed rate insurance policy that you pay premiums into until the end of your life. The money paid out is tax free, meaning a withdrawal of the funds does not have to appear on your next tax filing. The policy also grows in cash value as the years go by, meaning it will be worth more later on in life. Finally, if you are in a financial emergency, you can withdraw the money early and use it to pay any kind of debts you may have.
When you die, you have to be either buried or cremated. This does not come cheap. And without life insurance, the burden to pay for the funeral falls on your family. As stated before, the average funeral can cost up to 10,000 dollars. This is an exceptional amount of money to come up with on a short notice. If you are young and healthy, consider getting something low cost like a 10-year term life policy, just in case something unfortunate does happen to you. Nothing can make a grieving family feel worse than a debt collector hounding them for funeral expense that fell into collections.
If you are a business owner, making a life insurance policy a part of your business plan is essential. Obviously, should you die prematurely, a life insurance policy can replace your income and protect your relatives. In the event an owner, partner or key employee dies, life insurance could also ensure business can continue. Say you start a small business with a partner and two other key employees. What would happen if you suddenly lost your partner to a car accident or one of your key employees to a sudden illness? You would probably lose your business. Individual life insurance is coverage for a business owner’s family, whereas, a key person life insurance policy, the company can be the beneficiary and pays the monthly premium.
Another life insurance solution would be key person life insurance for businesses. Key person insurance provides the business with cash if one of your important, high revenue generating employees die. There are many costs that come with losing a crucial member of a business, not including the obvious loss of talent. You can lose clients, connections and not to mention their contacts. Also, recruiting, hiring, and training a new employee is extremely expensive. Add it all up and it can shut down a business quickly.
Help Care for Those You Love
If you are financially taking care of your parents or grandparents, a life insurance policy can insure their care if something happens to you. Also, if you are planning to have a family in the future, having a life insurance policy protects your future family from any financial burdens.
If you are searching for an affordable life insurance policy in Utah, contact LifeLine Solutions to get a life insurance quotes from an experienced professional.