Top pick: Bestow
- Up to $1 million coverage
- Get covered in 10 minutes
- No medical exam needed
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A life insurance policy can shield your family from financial hardship if you pass away unexpectedly, and in some cases it pays out if you become will. Whether you’re living alone or with children, it’s important to make sure that you have the ability to tie up any potential financial loose ends.
There are different types of life insurance, and what you’re covered for depends on what kind of policy you have. Your coverage might pay out if:
Life insurance serves two purposes: it gives you the peace of mind knowing your family will be taken care of when you’re gone, and it offers your loved ones a sense of financial security. These are just a few reasons why you might consider taking out a policy.
If you have children or other financial dependents, a life insurance policy can help them to maintain their lifestyles if you die prematurely.
Having a final expense or life insurance policy can ease the financial burden on your loved ones while they’re processing their grief. Even a basic funeral can cost thousands of dollars, when you factor in the ceremony, burial or cremation, transportation, and the wake.
Any money you have in your bank accounts will be used to pay for outstanding debts before you can leave anything to your loved ones. This is particularly important if you have anyone listed as a co-signer on your debts.
If you have a mortgage that isn’t paid off, your house could end up being repossessed by the bank. If anyone besides yourself is living in your house, consider whether they’d be able to make on-time payments without you.
Even if you don’t have any dependents or loved ones relying on you, it’s a good idea to protect yourself against future changes to your health. A critical illness or disability policy can offer a source of income if you’re sick or injured and can’t work for a period of time.
To figure out how much coverage to buy, look at everything you pay for now, and everything you anticipate to pay for in the future. Then, aim to take out a policy to match.
When you’re crunching the numbers, consider these expenses:
The right policy for you comes down to your situation, and what stage you’re at in your life.
If the only person you need to take care of is yourself, you might not need a traditional life insurance policy. But if you think you might have children in the future, you may consider getting a policy now — the younger and healthier you are, the lower your rates will be.
Single parents need to consider their own financial situation, as well as their children’s financial futures.
If your children are financially independent, you may be able to reduce the amount of insurance you have. But unless you have healthy savings and investments, you may want to keep some coverage to protect your family in the event of an unexpected death or illness.
Once you’re retired, you don’t need to worry about replacing lost income if you’re unable to work. Most people significantly trim down their insurance coverage at this point. If you need life insurance, consider getting final expense insurance or preneed funeral insurance to cover burial costs instead of a term life policy.
To find the policy that’s right for you, factor in:
How much life insurance you need and what type of policy is right for you depends on your income, dependents and lifestyle. But being single doesn’t necessarily mean you don’t need coverage. Compare life insurance policies to find one that’s the right fit for your needs and budget.
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