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Karen van Kayne, Agent
New York Life Insurance Company
Playing the Singles Game
If you are like many single men and women, there is a good
chance you don’t feel an urgent need for life insurance coverage. After all,
there is no spouse to protect in the event of your premature death, and your
financial responsibilities are fairly minimal. Simply put, there are probably
better ways that you can think of to spend your money.
Being single however isn’t necessarily the same as being
alone. Your death could have a financial impact on other family members. If you
are a young adult, you may be paying back your student loans and other debts. If
anything should happen to you, who would pay those bills? If you have only a few
assets, creditors may write off your obligation as un-collectable. In many
instances, however, education loans are taken out in the names of other family
members, usually with a parent as a cosigner. A cosigner must pay 100 percent of
a debt if the other signer is unable to pay for any reason.
As if this isn’t enough, there are final expenses incurred
at death. These could add up to several thousand dollars. Once again, these
obligations could fall on parents or other loved ones.
A Potential Solution
Life insurance isn’t the most glamorous subject to discuss,
but the bottom line is that it can help protect your financial future. Life
insurance can shelter your family members from the repayment of educational
loans in the event of your premature death. Life insurance proceeds can also be
used to help meet any final expenses.
Just as important, purchasing life insurance today can
protect your future insurability. Someday, you may eventually have a family.
Whole life insurance, once issued, is in force for life, assuming you pay
scheduled premiums. This is the case in spite of any future changes in your
health. With permanent life insurance you can lock in the premium rate for life.
Premiums at issue are lower for younger men and women, increasing each year.
But, you can “freeze” those rates at the age of issue, so it is possible to pay
the same affordable premium rate when you are 70 that you did at age 25.
The Single Parent Scenario
If you are a single parent, you are solely responsible for
the support of your children. What would happen to your children if something
happened to you? You know all too well the cost of maintaining your children’s
standard of living. If you die prematurely, your income dies with you. Where
does that money come from? A single parent’s need for life insurance may be even
more crucial than in dual-parent households that will have another source of
income if one parent dies. Life insurance is a cost-effective way to help ensure
that your children are financially protected should anything happen to you.
If you are a surviving spouse whose children are grown and
on their own, life insurance can help protect the estate you and your spouse
accumulated over the years. That way, the bulk of it can be passed to your
children and grandchildren someday, rather than see it be used to pay potential
taxes. In the past, life insurance premiums could be too high to fit into a
senior’s budget. Many of today’s life insurance policies reflect the good health
of the country’s growing older population. As a result, premiums have become
more affordable. Don’t overlook the need for life insurance.
In addition to the protection it can provide, the
accumulation feature of cash value life insurance policies can prove to be quite
valuable. Your policy’s cash value can be borrowed against*
for any future goals you may have, whether its a down payment for a home, as a
retirement supplement, or to help meet tuition bills, etc.
If you would like more information about the types of life
insurance coverage available, please contact Karen van Kayne, Agent, New York
Life Insurance Company, at 707-996-4555 or email me at
kvkayne@ft.newyorklife.com. Please visit my website for more information and
articles:
http://www.newyorklife.com.
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