While it can be easy to see the benefits of life insurance for people who have a partner or children who rely on them for financial support, there are also many reasons singles might consider protecting their financial independence.
Here are some situations where you might consider taking out life insurance as a single person:
You have a co-signer on your mortgage
If you’ve bought property with a loved one and you pass away, life insurance can help avoid putting them in the difficult position of having to sell if they can’t afford the mortgage on their own. When nominating a benefit amount, it’s important to consider your share of the debt left on your home loan.
You have a small business
If you start a small business, you might find it necessary to take out a business loan. If you pass away, your share of the debt may be passed on to your business partner or family members. That’s why getting covered is something to consider to help protect them from financial worry.
You have financial dependents other than children
Perhaps you are financially taking care of your parents, grandparents or another family member. Life insurance can help support your loved ones financially should something happen to you.
You have a savings goal
If you’re working towards building your savings and illness or injury prevents you from working, income protection insurance can help you avoid dipping into your savings by providing a source of income should the unexpected happen.
You need your income to survive
When you are the sole income earner, you may find yourself in a difficult position if you became seriously sick, injured or disabled and unable to earn an income. Total and permanent disability (TPD) and income protection insurance give you peace of mind that you’ll still be able to maintain your way of living and pay your bills if you become unable to work.
There are many things to consider when looking for cover for your individual circumstances. If you would like to discuss your options, please don’t hesitate to reach out and I can help you choose the right level and type of insurance for your needs.
Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.