In order to determine how much life insurance coverage to get, single persons should start by thinking about what others would need to pay off for them. Life insurance is a fast and easy way to settle bills, and it is especially helpful for survivors to have these ready funds when there is not a spouse to take care of the estate. The bills might be credit card debt, a school loan, utilities until the home is sold, etc.
Next, how much do you want to leave for your funeral or memorial service? You can pick out cemetery plot, casket, urn, and so many things ahead of time, then have life insurance to pay for it all. What is remaining after expenses can go to the beneficiary; you don't have to leave it all to the funeral home.
Finally, do you want to leave any funds to special people in your life or to a charity? Life insurance is a good way to make a small amount of money stretch into a big gift.
You may have other things this prompted you to think of, that could be covered by a life insurance policy. But these three - debts, final expenses and gifts - are the main ones that I can see being well served by having a life insurance policy as a single person.
The need for life insurance is as unique as the person purchasing the life insurance. There are several life insurance calculators online to assist you. However, the basic rule of thumb is to carry enough life insurance to pay off all of your debt for your loved ones plus ten times your income so they can invest the proceeds and replace your income.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Great question! The answer depends on a number of factors. Does the single person have dependents? What is the goal for the life insurance? That may sound like a silly question, but Life Insurance can be a whole lot more than insurance against dying too soon. Whole Life insurance can provide a good source of tax-free retirement income. It can be used for college funding. It can be used as a personal bank/ credit union where you can use tax-free money at very low interest to buy things. Talk with a knowledgeable Insurance Adviser who can help you determine the amount of insurance you need.
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Next, how much do you want to leave for your funeral or memorial service? You can pick out cemetery plot, casket, urn, and so many things ahead of time, then have life insurance to pay for it all. What is remaining after expenses can go to the beneficiary; you don't have to leave it all to the funeral home.
Finally, do you want to leave any funds to special people in your life or to a charity? Life insurance is a good way to make a small amount of money stretch into a big gift.
You may have other things this prompted you to think of, that could be covered by a life insurance policy. But these three - debts, final expenses and gifts - are the main ones that I can see being well served by having a life insurance policy as a single person.