Why You Should Have Life Insurance Even with No Dependents
When you consider the benefits that most insurance policies provide, it’s clear that they are primarily intended for the benefit of the policyholder. That’s not exactly the case when it comes to life insurance though. Life insurance is a bit unique in that it benefits the beneficiary of the policyholder, not the policyholder themselves. But what if you don’t have any dependents? Is there any reason for you to carry life insurance?
Lock in a Lower Rate
One of the tricky things about life insurance is that the older you get, the more expensive it becomes, as a general rule. Remember, the cost of any insurance is related to how risky the insurance provider believes insuring you to be. Getting older increases the likelihood of the insurance company needing to pay out on your policy, hence the higher premiums as you age. If you get life insurance while you’re younger, you can often get a lower rate and lock it in. That could end up saving you money.
Funeral Expenses
The average cost of a funeral tends to be between $7,000-$12,000. That’s a pretty chunk of change, and one that may be tough to come up with on the fly if you were to pass away unexpectedly. You may be able to plan a less expensive service if you choose to have memorial services instead. A funeral includes the casket whereas a memorial service may do without it. Fortunately, life insurance policies can be used to pay for such expenses, regardless of whether you choose funeral or memorial services.
Cover Debts
It’s not uncommon for people to leave debts behind after they pass away. Those debts need to be accounted for and resolved. That’s all a part of processing the estate, regardless of whether you have dependents or not. You don’t have to have dependents to have heirs, however. Your estate will be used to cover your debts if you have any when you pass away. If you want the inheritance you leave behind to pass on without any of it being taken to resolve debts, carrying life insurance can help. That can be used to cover debts so the rest of your estate can be inherited as you intend for it to be.
Carrying a life insurance policy when you have no dependents doesn’t always make sense for everyone. Still, if you want to lock in a lower premium, if you don’t have the money to cover funeral expenses, or if you believe you could have outstanding debts that will need to be covered, it may be a good idea to have life insurance anyway. Give it some careful thought and consideration before deciding if carrying a life insurance policy is right for you.
Check out this article on insurance benefits you should consider using !
