Financial protection is needed for growing families as well as for single individuals. Life insurance provides a viable solution to help shoulder certain debts and burial expenses. Several financial strategies could enable an individual to save money through life insurance products.
Benefits of Life Insurance
Life insurance is used to pay for funeral costs and for burial costs too. With enough coverage, an insurance policy may be used beyond funeral services. Certain debts might attach to an estate. However, proceeds from a life insurance policy could be used to pay for hospital bills, credit card bills, mortgage debts and other items. Several types of life insurance may be used to build cash value or to help cushion a retirement plan.
Life Insurance Coverage for a Single Individual
While life insurance often appears irrelevant for single individuals, it has a host of financial incentives for practically anyone. Financial planners usually suggest the purchase of life insurance products to replace the income that a family would lose in the event of a contributor’s untimely death. However, life insurance may be used to pay off items such as a home loan, an automobile, credit card bills, taxes and a variety of other debts.
A single individual could use life insurance benefits for charitable donations or toward the establishment of a scholarship fund. Proceeds from a life insurance policy may be given to specific beneficiaries. For example, a single individual may select a cousin, uncle, niece or other relatives to receive certain insurance benefits as a result of the policy holder’s death.
Securing Life Insurance
Life insurance is typically offered through licensed agents, financial advisors, employers and insurance companies. Products such as whole life insurance, variable life insurance and term life insurance provide a variety of benefits. Single individuals are encouraged to speak with an insurance professional about products that are recommended for specific needs.
A health examination might be required for certain types of life insurance. Before agreeing to issue life insurance, an insurance underwriter might require a physical examination to determine an individual’s overall level of health. If a single individual has a history of chronic health problems, a life insurance policy might be more expensive. In cases where severe health problems exist, an individual may be denied for certain types of life insurance coverage.
Costs of Life Insurance
Life insurance rates generally vary from one individual to the next. Usually, a custom life insurance quote may be obtained online or by phone. Certain factors will contribute toward an individual’s cost of life insurance. If an individual has used tobacco products within the past few years, life insurance rates will be priced higher than the rates for individuals who do not smoke.
An individual’s weight might contribute to the costs of life insurance too. If an individual is considered overweight, life insurance rates are likely to cost more. Age is a major factor toward the costs of life insurance. Insurance companies utilize actuarial tables to determine the life expectancy of men and women who may want to obtain life insurance coverage. As a result, life insurance rates are generally more expensive for older applicants.
Individuals who are single may have an opportunity to buy life insurance and to prepare for unforeseen circumstances. An individual with a sufficient amount of life insurance coverage will not place a burden on others as a result of an untimely death.