You probably already know that life insurance is great at financially protecting a spouse and kids should something happen to the insured person. But what if you don’t have a spouse or kids — is life insurance still for you?
The truth is, there are more benefits to life insurance than many people realize. So, whether you’re a single adult, a spouse, a parent or a child, life insurance could be a great supplement for you or your loved ones.
Here are some considerations to help you decide if a life insurance policy would be a good fit for your circumstances.
Life insurance and benefits for single adults
Even if no one depends on you financially, if you’re a single adult, you may benefit from having life insurance coverage. It provides tax-free funds after the insured person is gone that can cover expenses including funeral and burial services, end-of-life care, medical bills and estate settlement costs.
There are also potential benefits you can access during your lifetime as an insured person. For example, many life insurance policies include “living benefits” that can pay out all or a portion of the death benefit early under defined circumstances like:
- Terminal illness
- Nursing home confinement
- Debilitating chronic condition
In addition to the death benefit, as an insured person you can use life insurance to help pay for certain medical treatments and home health care.
The perks of life insurance for single adults don’t stop there. Some types of life policies (like universal, whole life and return of premium life) build cash value over time. Depending on the policy type, the growth of the cash value may be guaranteed. Insured persons can access the cash value through loans or withdrawals and use it for emergencies, supplemental retirement income and more.
Options for married couples getting life insurance
You can opt for one of two different types of joint life insurance policies when you are married. They offer many of the same benefits as life insurance for individuals, however, the timing of when the death benefit is paid can differ. Here are the two main types of life insurance coverages for married couples:
- First-to-die coverage pays the death benefit after the first insured person dies. The surviving spouse receives the payout and the policy can help them pay for the first spouse’s funeral and burial costs.
- Survivorship coverage or second-to-die coverage pays the death benefit after both insured persons die. The beneficiaries of the survivorship policy receive the assets.
How children can benefit from having life insurance
Chances are your young kids (or grandkids) aren’t supporting the family financially or doing the bulk of the household chores. So why insure them? They won’t be children forever and setting them up with life insurance early in life can have lasting benefits for them as adults.
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Protect children’s insurability
For your young child, you can “lock in” their insurability now to help them access affordable life insurance as they progress through life. This can help them maintain coverage throughout life if they exhibit driving patterns that make insurance expensive or develop a medical condition that’s difficult to insure.
Both term and permanent life insurance policies can protect children’s insurability. If you use term life insurance, which provides coverage for a defined time period and can be very inexpensive, make sure it includes a good conversion privilege. Conversion privileges allow a term life policy to be exchanged for a permanent policy (designed for lifelong coverage) later without having to qualify for it at that time.
Build cash value for children to use in adulthood
A life insurance policy that builds cash value can not only provide kids with lifelong coverage but also provide funds that can be tapped into for future expenses like:
- Education
- Buying a house
- Supplement retirement
Some of these policies can be paid in full in one single payment or spread out over a limited number of years (for example, 10 or 20 years), so you’ll know the coverage will stay intact even if times get financially difficult for the child in adulthood.
Start talking to your agent about life insurance
No matter what stage of life you are in or what your circumstances are, the right life insurance policy can help protect you and your loved ones from end-of-life expenses and even offer perks while you’re here. Contact your Grange independent agent for more information about life insurance policies today.
Coverages described herein may not be available in all states. Please contact one of our local independent agents for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational and/or suggestion purposes only, and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED.
Life policies are offered by Kansas City Life Insurance Company, Kansas City, MO, and are subject to underwriting approval. For specific coverage details, always refer to your policy. If the policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies.
Sources:
NFDA