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In This Article, I’m Specifically Going To Talk About The Reasons Why It May Be A Good Idea To Purchasing Life Insurance If You’re Single
Whether or not you’ve been married before or have kids, most likely you’re here today because you are looking for life insurance. Perhaps you’ve given some consideration to owning life insurance because of the potential future necessity for it or you feel like you are at a place in your life where it makes sense to be covered now rather than later.
If this describes your situation, you are in the right place. This article will discuss a number of factors related to buying insurance as a single person.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation why single people should buy life insurance. Enjoy!
Here’s An Overview Of Today’s Topics:
- Reasons Why A Single Person Should Consider Life Insurance
- Top 5 Reasons Why People Buy Life Insurance From A Broker
- Stories From The Field
- Case Study Examples
- The Amount Of Coverage A Single Person Should Purchase
- Factors That Affect Your Ability For Coverage As A Single Person
- Strategies A Single Person Can Apply When Buying Life Insurance To Get The Best Price
- Different Kinds Of Life Insurance Products Available To Single People
Why a single person should get life insurance coverage
In this section I want to take time to describe the important reasons why somebody would consider buying life insurance as a single person. It may seem like a silly idea to begin with. After all, you’re single. You don’t have anybody that depends on you, so why would you buy life insurance?
Well, the answer lies in what you expect in the future and having the prudence to understand what is coming down the pike. In this section we’re gonna talk about the most common reasons why somebody would purchase life insurance.
Kids and family
This is the biggest reason why single people buy life insurance. Even if they don’t currently have kids, they anticipate later in life that they will have a family that consist of a spouse and children.
Families have financial problems that are larger than the financial problems you may have if you are single. For example, families often have a mortgage or college tuition and expenses or have to fund a retirement. A life insurance plan can do an excellent job of taking care of the people you would leave behind later in life when it comes to all of these financial concerns.
Why get insurance now instead of waiting? Well, first of all, if you’re single and healthy, then there’s no reason to wait. You can qualify much easier now than if you were to wait and potentially come down with health issues, medication changes, or any factors that could affect your coverage eligibility.
If you are single and have children from a past relationship
This is enough reason to purchase life insurance. You may not be married now, but think of the children. Think about your kids. You may not have custody of them, but if you’re like most parents, I know you want to take care of your children financially if you pass away earlier than expected.
If you buy a life insurance plan as a single person with kids, you can always name your kids as the beneficiaries, which means they would be the recipients of the benefit upon your death. This ensures if you die that you’re children will be taken care of financially and be able to pay for things like college expenses to help them get started in life.
If you anticipate entering another relationship and ultimately becoming married again, you can have the life insurance policy taken out now to account for anyone that depends on you financially.
To pay off debt
If you have private college loans or debt that has co-signers, such as your mom and dad, it may be prudent to buy life insurance to pay off those debts upon your passing. This relieves the burden of having that debt roll down as a responsibility to those left behind.
If for no other reason, consider life insurance to take care of the people in your life who have stuck their neck out to take care of you.
If you’re single and looking for life insurance coverage, why not give us a call at (888) 626-0439 for your free, no obligation quote. You’ll speak to a knowledgeable broker who can answer any questions you might have about coverage to meet your goals.
Alternatively send us a message using the box found on this page. We will respond within 24 business hours.
Top 5 reasons why people buy life insurance from a broker
The biggest reason people buy life insurance from a broker is that they want to pay the best rates. A broker represents a number of providers so they are able to find the best value per dollar.
In conjunction with price, people also want the best coverage. Working with a broker means you can get the best value coverage because we can look at what a number of providers would offer, allowing you to choose the best deal to maximize coverage.
Buy Life Insurance for Burial places the focus on our client’s individual needs, whether they are looking for short or long term coverage.
Unlike brokers who represent a number of companies, an agents represent one company and has the interest of that company at heart, not the client. This has resulted in many poorly put together plans that have ended in people not getting the coverage they need and deserve.
While eliminating bias is not completely possible, brokers certainly do their best to find fair coverage for client’s regardless of their circumstances. Being able to shop among a number of competitors gives the client the best possible options for coverage.
We’ve mentioned options several times already and really this perk is at the heart of working with a broker. When you work with a broker you can choose among a number of providers, while you are stuck with only one option when you work with an agent.Options will always provide better value for money especially if you have unique health circumstances.
How much life insurance does a single person need?
I hear this question a lot – how much life insurance should I get?
Much of it depends on your financial circumstances, but if I could provide an easy, one size fits all solution to simplify the matter, generally speaking you should buy life insurance that is a multiple of 10 times your annual income.
This means if you make $50,000 a year, you should seriously consider buying a life insurance plan that’s $500,000 in coverage. Most likely, that amount of coverage will do several things.
- It’ll take care of any of that debt that’s cosigned, so your parents don’t have to come out of pocket to pay it.
- If you already have children it will take care of their financial concerns when you pass away.
- If you plan to get married and have kids in the future,$500,000 is a significant sum that would be paid out to your wife and/or children to ensure they are taken care of if you were to pass away.
What factors affect insureability for a single person?
There area number of factors that affect your ability to qualify for insurance. Let’s go over some of those factors now so you can be better prepared when you fill out an application.
As you can imagine, your health is the most important component for determining whether or not you’ll be eligible to qualify for a life insurance plan. What most life insurance companies look for are major health issues that have happened over the past 10 years.
Some of the most common health issues that you will be asked about on your application include, but are not limited to:
- heart problems
- history of cancer
- lung problems
- kidney disease
- liver disease
- neurological diseases
- mental health issues
There are many more health questions that are asked, but this is a good summary of what to expect and what to be prepared for. Generally speaking, the rule of thumb with life insurance applications is that the younger you are in the process of applying for life insurance, the higher the likelihood you’re going to get approved at a better price.
Age is another component of the insurance process that makes a difference in what your level of qualification will be.
If you’re a single person, and fairly young, chances are your premium will be lower than if you were single and more advanced in age. This is due simply to the fact that you have less health issues when you are younger than when you are older.
Whether or not you work with a broker
It’s important to work with a broker. If you’re looking for life insurance coverage, make sure you shop the most competitively priced companies for your age and not just pick one company that may not offer the best price.
Do you smoke?
Smoking definitely will have an impact on your eligibility for life insurance coverage. Although, it’s important to understand that certain types of smoking, including cigar cigarillo, pipe smoking and tobacco chewing may actually qualify for non nicotine rates.
If you work with a broker like us at Buy Life Insurance for Burial, you will find that you can get a better deal that doesn’t have a smoking rate attached to it if you happen to smoke anything other than cigarettes.
Your height and weight
Your weight has an impact potentially on what kind of life insurance you may qualify for. The heavier you are in ratio to your height, the higher the likelihood that you will pay a higher price.
Again, certain companies are more generous when it comes to overweight issues and may provide better pricing arrangements. So again, it’s a really good idea to work with a broker who can go to agencies like us at Buy Life Insurance for Burial and get competitive pricing despite any weight issues you might have.
If you are single and work in a high risk profession such as mining, piloting, or truck driving, you may find that there is a higher surcharge or what’s known as a flat extra attached to your ultimate life insurance premium. This accounts for the fact that you work in a high risk profession.
It’s usually rare that this happens, but you should be aware that it can happen. Most people work low risk jobs and don’t have to worry about this added cost.
Your lifestyle will have an impact on your eligibility for life insurance. If you’ve had traffic violations, credit problems, or if you participate in risky hobbies, you may find that your life insurance coverage is rated at a higher rate.
Have you found what you have read so far helpful? Why not get your free quote today! Call (888) 626-0439 and find out what your premium might look like. You can also send us a message with your contact details and we will be in touch soon with more free information.
Stories from the field
I want to share with you my first interaction in the life insurance business with a client, as it turns out to be a cautionary tale about buying quality life insurance for the sake of those you leave behind.
It was a hot Georgia day in 2011. I was doing house calls and had just arrived at a small trailer home of a client who had requested information.
The gentleman showed me inside and I remember looking around and noticing he had several fish aquariums. There were also a lot of wasps buzzing through the open front door and I remember thinking it would be a miracle if I got out of there without being stung.
I listened to my client tell me about the sad state of his father’s affairs. How his father had purchased life insurance through an agent who he didn’t realize at the time only offered full coverage after a 2 year wait period.
Long story short, when the man’s father died, his children thought they could rely on his insurance to pay final expenses. They were stunned to find out they would not be getting any money for final expenses because their father had died shortly after getting the insurance and was not within the 2 year wait period.
As a result, this gentleman had to take out a second mortgage to help pay for his father’s funeral. To say he was upset about this is an understatement. This experience reinforced in my mind why it is so important to work with a broker who offers quality, first day coverage.
Life is not guaranteed and no one knows when their time on earth will end. Don’t take your chances with a an agent who does not offer first day coverage.
Case study examples
Promotion at work with weight issue
A young gentleman gave us a call to explain that he had recently gotten a promotion at work and while he was elated, he also wanted to do the responsible thing and get enough life insurance coverage to cover his financial obligations if he passed away sooner than expected.
The one issue was that this gentleman had a bit of a weight problem. He was concerned his weight would cause a rate increase on his life insurance.
Despite his concern we were able to get him quality coverage at an affordable price. Though we can’t guarantee the same outcome for every applicant, we do our best to shop competitive providers to find coverage that meets your goals.
New home owner with diabetes
I recently worked with a client who had bought a home and had taken on a 30 year mortgage. Because he was single he knew if he passed away sooner than expected his parents would be responsible for his mortgage payments and wanted to be sure he had life insurance in place.
The only negative in this situation was that this client had diabetes. He was managing his sugar levels by taking insulin, but was concerned his diabetes would have an affect on his application.
Buy Life Insurance for Burial regularly works with individuals who suffer from diabetes. Thankfully we were able to shop a number of competitive providers who were able to provide our client with quality insurance options at an affordable rate.
Strategies to getting the best price for life insurance
I would like to detail here three particular strategies that I employ with my clients to help them get the overall best price if they’re single and looking for life insurance. Use any of these particular methods to achieve a better overall package deal for your life insurance coverage.
Always work with a life insurance broker
This is very important and probably the biggest takeaway that I would recommend, no matter what your background is – you need to work with a broker like us at Buy Life Insurance for Burial to help you shop around to find the best overall package and price to meet your life insurance needs.
If you don’t work with a broker and choose instead to work with a one trick pony agent that only works with one particular company, you might find that you will be paying more than necessary for your life insurance and simply won’t have as comprehensive coverage as you could have elsewhere.
A broker has the capability of working with 15 to 20 plus life insurance companies. Why pay more when you don’t have to?
Consider an exam
If you’re a young and healthy single person, always consider taking an exam to maximize your pricing. You see exams are necessary to get the best price because they reveal the most relevant and up to date information for the underwriters. This allows them to offer you the best price based on your current status.
While a non-medical application may be easier, you will end up paying fifty to one hundred percent more for coverage. If you choose to go the exam route they will take a blood sample, do a physical, and check your vitals.
I do not recommend taking an exam in all circumstance. I really only recommended an exam if you’re looking for large amounts of coverage such as $500,000 or more. An exam may not benefit your pricing if the amount is any lower than that.
Types of life insurance
In this section we will briefly describe the different types of life insurance products available to single people so that you can better understand what your options are. Also, you’ll find a rate table below that will help you better understand what kind of payments would be required with each type of plan.
Term Life Insurance
Term Life Insurance is the most popular form of life insurance coverage. Term Life insurance provides level premiums over a fixed period of time, typically between 10 to 30 years and pays a death benefit as long as you die within that term period of time.
Term insurance is the cheapest form of coverage and it offers the most coverage for the least amount of price. The biggest drawbacks include that you could outlive your coverage and it may not be there when you necessarily need it.
However, most people buy term insurance because it satisfies temporary obligation coverage such as mortgages, loans, and income replacement, so it’s not something that is necessary to keep for the entirety of a person’s career.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Whole Life Insurance
Whole life insurance, unlike term insurance, is permanent protection, designed never to cancel due to age or health as long as the premiums are paid, which can be paid for life or in some circumstances paid up earlier in life, and then never have to be paid again.
Permanent Life Insurance plans, while having great guarantees, also have downsides. Chiefly, the price is very expensive in relation to term insurance – sometimes as much as five to ten times more.
Many times people buy whole life insurance because they want final expense protection to pay their burial and cremation costs or they want to buy whole life insurance to cover and fund a supplemental life insurance retirement program.
Most single people do not buy whole life insurance plans to satisfy their current concerns.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Universal Life Insurance
Universal life insurance plans allow for flexibility and payments in the sense that you can adjust the premiums up and down depending on what you are comfortable paying. Universal plans also allow for the potential, if designed correctly, to be permanent life insurance.
The biggest problem I have with universe life insurance plans is they have a history of imploding because they’re often not properly designed with the client’s finances in mind.
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
These plans should be managed on an ongoing annual basis to ensure long term success of payments and coverage.
I hope this article has encouraged you to take the next steps towards getting coverage in place. If you have any questions or would like to find out more about what your premium might cost, give us a call today (888) 626-0439 for a no-obligation quote.
You can also contact us using the message box on this page. We will get in touch within 24 business hours with a free quote.
We are ready to assist you with any questions you might have. We hope to speak with you soon!