Many people assume that if they don't have kids, they don't really need life insurance. But while you won't need the policy to pay for children's costs if something happens to you, this is not all that life insurance covers. Here are four reasons to invest in a life insurance policy even if you don't have kids.
It will cover your burial costs.
Funerals are not cheap. The average North American funeral runs around $7,000 to $10,000, which includes the cost of a service, head stone, and plot at the cemetery. If you die without a life insurance policy, your family or friends will have to come up with this money. However, life insurance will cover the cost these costs. This will prevent those you leave behind from having to shoulder this financial burden at a time when they're already going to be strained due to loss and grief.
The policy will pay off many debts.
If you die and leave behind a mortgage and other debts, these debts will be paid off with your estate before your heirs are given any money. Debts can eat up an estate rather quickly, leaving your heirs (whoever they may be) with next to nothing. But a good life insurance policy will cover most, if not all, of your debts so that your beneficiaries can actually receive the money in your accounts.
Life insurance will cover costs associated with selling your home.
If you own a home, chances are your family members will want to sell it when you pass away. There are many fees associated with selling a home, from the realtor's commission to the deed transfer fees with the local government. Many life insurance policies will cover these costs so that selling your home does not become a burden to your family.
It can serve as an investment.
If you buy a whole life insurance policy, you're not just purchasing insurance -- you're also making an investment. The money you pay as premiums is invested for you, and it grows in value over time. If you ever decide to cancel your policy, you can collect the cash value of the policy at that point. Do keep in mind that the earnings are taxable. Talk to your insurance agent to learn more details about using whole life insurance as an investment.
Even if you don't have kids, buying whole life insurance is the right thing to do for those you'll leave behind.
