Term Life Insurance FAQ
LIFESTYLE
Q. I’m young and single — do I need term life
insurance?
A. When to get life insurance is an important consideration
whether or not you are married. And younger people typically
have the advantage of getting a lower rate for their policy.
Here are some factors in considering when to get life insurance.
Dependents: Do you have anyone in your
life that depends on you for financial support or care? This
could mean children, an aging parent, a disabled sibling —
anyone who might face financial hardship if you were to die
prematurely. Term life insurance coverage can provide the
income they need to live comfortably. It’s regarded
as a low cost, reliable way to ensure peace of mind.
Assets: If you have a home, retirement
investments or college tuition account(s), term life insurance
is a good way to protect these assets for your loved ones
in the event that you die. The coverage can help prevent the
assets from being liquidated to pay for debts or ongoing living
expenses.
Medical risks: If you are predisposed to
any medical risks, for example, heart disease, cancer, diabetes,
or other serious medical conditions in your family’s
history, you should consider getting term life insurance while
you are young and healthy. It can be very difficult, if not
impossible, to secure coverage after developing a medical
problem.
Debts and obligations: Mortgages, taxes
and other debts need to be paid in the event of your death.
Creditors can make claims against your estate’s assets.
Do you have enough to pay these bills, or will your loved
ones be saddled with the obligations? Also keep in mind that
if you have any cosigned loans, the cosigner will be held
fully liable for the debt if you die. When considering whether
or not to get coverage — and the benefit amount —
it’s important to factor in these considerations.
Funeral costs: It’s not unusual to
overlook the cost of a funeral, and yet it’s an important
consideration. Even a modest funeral can represent a tremendous
financial strain to loved ones if there are no funds to cover
it.
Because term life insurance costs less while you are young
and healthy, the general wisdom is to get insured young, while
you can get more coverage for your money, whether or not you
are married or have a family.
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