Do I really need Life Insurance if I’m not married? My children are grown; should I cancel my Life Insurance policy? I just retired; can I cancel my Life Insurance policy?
If you have walked down the aisle or became a parent, chances are you have considered purchasing Life Insurance. It goes without saying that married couples or parents are the first to realize that Life Insurance is of utmost importance.
Just because you are single and don’t have children, it is important not to assume that you don’t need it. The simple truth is that most people need it and should have it. A rule to keep in mind is that if someone would suffer financially should you die, you absolutely should be shopping for it.
We often think of Life Insurance as a way of replacing income should a loved one die, however, I’d like to go over a few scenarios to keep in mind of other reasons you may need it.
1. Single and without children – One of the advantages of being single is that you have fewer responsibilities. One of those responsibilities happens to be financially so when it comes to Life Insurance, it is natural not to think about it. The fact of the matter is that many single people are caregivers for a parent. We are seeing that more often especially with the advantages of health care.
2. Church or Charity Giving – This is also called the Living Gift Memorial Plan. Even purchasing a small policy worth $1,000 – $25,000 can considerably benefit your church or favorite charity. A Living Gift Memorial Plan is a viable option that allows you to be a philanthropist in your community.
3. Empty nesters – You are breathing a sigh of relief as your children have graduated from high school and now college. They no longer depend on you as they are building their careers and life away from you. This may be a time you have been dreaming about and you may be thinking that to save money, you will either drop your Life Insurance coverage and/or lower the death benefit. Balanced Care wouldn’t recommend this for several reasons. First, your empty nest may not stay empty. Second, you may have to help raise grandchildren and third, your spouse could still need your income after your gone. If your spouse were to outlive you by ten, twenty, or even thirty years, would your current financial plan maintain the lifestyle they are accustomed to?
4. Stay at home parents – In today’s world, it is custom to see both parents working outside the home, however, there are still times when either Mom or Dad stay at home caring for the children. Never underestimate the value that this has. If you talk to any parent that stays at home, their job consists of childcare, cook, secretary, organizer, house cleaning, transportation, and shopping just to name a few. Imagine what would happen if the stay at home parent suddenly passes away. The other parent would still have to work outside the home plus take care of all the responsibilities the stay at home parent once did. Just hiring a nanny alone would cost in the ballpark of $30,000 a year depending on where you live. To cover that amount plus the other responsibilities, Life Insurance is an option worth looking into.
5. Retirees – Retirement is a time to sit back and relax especially if the mortgage is paid and your financial house is in order. Life Insurance is still important as it provides for your heirs. For example, it helps to pay for costs associated with trusts and funeral expenses.
6. Small Business Owners – If you own a business, chances are very good that you have been successful through hard work and dedication. Be that as it may, you also have a team of people depending on you and your business. Life Insurance is something you shouldn’t dismiss as a way of protecting them to keep your business running after you are gone. There is also the possibility that you have a “key person that is responsible for running your operation. If either of you were to pass away, it could potentially leave a negative impact on your company. Key Person Life Insurance policies pay money to the company to help run the company, hire a new person, and protect the business.
If you fall into any of the categories listed above, Balanced Care will help you determine if Life Insurance is a good option for you. Balanced Care does provide a FREE Life Insurance Needs analysis as well as a consultation to help you determine what exactly you need. We always encourage and welcome your questions as we strive to protect one person, one business, and one family at a time.
Terri Trepanier is the owner of Balanced Care Health and Supplemental Insurance and a licensed insurance consultant and broker with Associated Brokers. Licensed in both Maine and NH, her specialty is working with small businesses, individuals, and families with their health and life insurance needs. She is certified to offer health plans both on and off the exchange and is contracted with every health insurance company that offers plans in both New Hampshire and Maine. Her other passion is assisting Medicare beneficiaries with their Medicare Supplemental, Medicare Part D Prescription Drug Plans, and Medicare Advantage plans. Terri has seen firsthand the importance of insurance products and how they help families. Her goal with Balanced Care is to “Insure Security and Peace of Mind One Family at a Time”.