Think you don't need life insurance if you don't have kids? You may want to think again. It may seem like an unnecessary expense. But there are many benefits to having life insurance, even if you’re not supporting a family. Here are 5 reasons why you should buy life insurance.
1. Mortgage protection
Your home may be your family's largest asset. And their largest financial responsibility if you pass away unexpectedly.
Term life insurance can be used to pay off an outstanding mortgage balance. Just select an amount that matches your mortgage. And a term that matches the length of your mortgage payment period.
2. Income replacement
You and your significant other may have planned for a future based on two incomes. But what if one of you passes away unexpectedly? Term life insurance can be used to replace the lost income so the survivor can maintain the same standard of living.
3. Final expenses
Funeral expenses, burial costs and medical bills can add up. The last thing you want is for your loved ones to shoulder this extra burden. Permanent life insurance is available in various amounts, so you can pick a death benefit that meets your needs.
4. College funding
Alright, this one only applies if you have kids. But have you seen tuition rates lately? Term or permanent life insurance can help fund a college education. If you pass away, the death benefit may be invested and potentially grow to the needed amount by the time your children reach college age. Feel better knowing that you helped prepare for their future.
5. Pay off debts, estate tax, or inheritance tax
Having a life insurance policy can help provide relief to your family when they inherit your assets. This can go towards paying off any remaining balance on your mortgage so your family won’t need to sell your home, as well as go towards any estate tax or inheritance tax they may be charged to receive what you have left behind for them.
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Determine whether term or permanent life insurance is right for you. Then, get an estimate of how much coverage you may need, and how much it could cost.
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Source: https://www.nationwide.com/lc/resources/investing-and-retirement/articles/why-buy-life-insurance