Do single people need Life Insurance?

Feb. 21, 2013 - PRLog -- If you are single and thinking about LIfe Insurance, here are some reasons you should buy it:

If you are single ask yourself: Who is going to pick up the remaining tab for your debts, mortgage, funeral, car and other responsibilities?

Life insurance can be a great way to leave a tax-free legacy to nieces, nephews or anyone else.

Also know too, that life insurance purchased today can protect your future insurability. When you're young and healthy, not only is life insurance cheaper, but getting a policy early in life eliminates the risk that later health issues will make you uninsurable, or saddle you with premiums that would send you to the poor house.. You're also not likely to be single forever: Buy a policy now, and you can just build on your existing coverage once you're married, instead of starting from scratch when you're older and initiating coverage will be more expensive.

According to www.dailyfinance.com:

Depending on the type of life insurance you buy, a policy can also be a forced savings vehicle, notes Byron Udell.

"I have owned a $500,000 whole life plan for the past 20 years. If I were to cash it today, I would have earned over 4% per year cumulatively, on every dollar I put into it -- not to mention the fact that if I had become disabled, the insurance company would have paid my premiums for me and I'd still have all that cash available to me. Further, my beneficiaries would receive over $500,000 tax free, if I passed away."

There's another way to make use of a life insurance policy. "I make too much income to qualify for a Roth IRA," says Tony Keena, who is single and a partner with the Estate & Business Planning Group. " By using a cash value life insurance policy, I can redirect those dollars that I would like to contribute towards a Roth to my life insurance policy. This allows me the same tax deferred accumulation of dollars [inside of the policy]."

"When I decide to take the monies out, I can do so tax free [just like the Roth IRA]. So by using this strategy, one can put away dollars that can later be taken out tax free and they do not have income limitations imposed on them," he adds.

"Life insurance is at the foundation of the financial planning pyramid. Bad things happen. And when they do, life insurance is the only product that provides the right solution for that moment in time. Your chances of dying are one out of one. It's just a matter of when."

Need to speak to an independent financial advisor to review your otions? Call 813-964-7100.
Mintco Financial has a team of independent financial advisors and will help you to get the best plan for you.