Life insurance is a very important acquisition as it allows you to provide for the people left behind after you die. In the vast majority of cases this means your dependents such as a partner and any children you may have.
Life insurance is normally intended to help these dependents meet the financial burdens of life when they no longer have the benefit of your income. These burdens can include the payment of a mortgage, or the cost of education. If you don’t have any dependents then is it really necessary to have life insurance?
If you are single, how does life insurance apply to you?
Firstly, it’s about more than just being single. You can be single and still have children who you want to provide for if you die. It’s also about the costs involved. In the majority of cases if you are single and have no dependents then the only thing you really have to be concerned about is the cost of your funeral. You may want to consider the benefits of a funeral pre-payment plan. It should be noted that these plans do have some risks attached to them and you also have the option of approaching your bank to set up a fund to pay for your funeral expenses.
What if you’re only young and you don’t know what the future may bring?
No-one really knows what is just around the corner; you may be single with no dependents today but that situation can change very quickly. Is it worth taking out a life insurance policy while you are young and healthy, just in case? It’s certainly true that life insurance premiums are cheaper when you are young and in good health but even so is it really worth paying out for life insurance when there is no-one to benefit, probably not.
When should you think about life insurance?
As soon as you have dependents to provide for, and a mortgage to pay, then it’s a good idea to purchase HBF life insurance. Once you have a policy in place then you no longer have to worry about what will happen should you die. You just need to make sure that you are insured for enough value to make sure that the mortgage can be paid off, and that the ongoing costs of raising your children can be met. This means that your family will at least have some financial stability whilst they are dealing with the emotional trauma of losing you.
It’s likely that you will need to purchase term life insurance which is normally suited to younger people in good health. You can take out the policy for a set number of years and if you die within that period then your family is paid a lump sum. In most cases this time period is long enough for your children to have grown up and for your mortgage to be mostly paid off. After these two things happen it may no longer be necessary to have a life insurance policy, depending on what other expenses will exist if you die.