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Why Life Insurance is Critical at Nine Stages of Your Life

Even if you don’t have kids, a mortgage or a business, you may still need life insurance. Here are nine reasons why.

A man with silver hair wearing an unbuttoned short-sleeved blue shirt with a white T-shirt underneath and khakis dancing with a young girl on his feet. The girl is wearing a white T-shirt, grey leggings, a pink tutu skirt and blue and orange striped socks. Her blonde hair is in a ponytail and she has a silver tiara on her head.

If you’re young or single, or don’t have kids or aren’t self employed, life insurance seems unnecessary. But there are plenty of other reasons why you might want this type of protection. From estate planning to boosting your retirement savings, here are nine reasons why you might want to consider life insurance.

1. Help pay off debt

If a loved one passes away, you could inherit their debt along with the house and the fine china. Life insurance provides you with a sum of money that can help you pay off any outstanding balances.

2. Leave money to your loved ones

If you provide for your family financially, life insurance allows you to continue to take care of loved ones and their expenses. You could ensure your parents are protected if they co-signed a loan with you, for example.

3. Cover final expenses

Funeral costs can quickly add up, averaging around $10,000. Life insurance will cover these costs so your loved ones aren’t burdened with a large bill.

4. Provide a source of income

If you’re a stay-at-home parent—or would leave one behind—life insurance provides a source of income that could be used to pay monthly bills and even cover long-term expenses, such as university tuition.

5. Estate planning

Having a life insurance policy allows you to provide a tax-free benefit to your dependents as part of your succession and estate planning.

6. Leave money for a business partner

If you co-own a business, you can leave money to your partner to help support the business in the event of your death.

7. Supplement your retirement

Whole life or universal life policies can be used as a supplement to your retirement income—or as an emergency fund—by building up cash value.

8. Pay for expenses if you’re single

Even if you’re not married, there’s good reason to consider life insurance. In the event the unthinkable happens, it will cover the cost of your funeral, as well as other debts such as a student loan. Also, premiums are typically less expensive when you’re younger, so it makes sense to get started early.

9. Peace of mind

Knowing that you’ll be able to retire in comfort, pass on your business and take care of loved ones can provide peace of mind—without having to break the bank.

Protect yourself and your loved ones

Life insurance is not one size fits all. Our Licenced Life Insurance Advisors are here to provide expert, unbiased advice that fits your life. For more information, go to caaforlife.com or call 1-877-222-0060 to speak with an advisor.

Image credit: Cecilie_Arcurs/iStock