One area that many women don’t like to think about when it comes to financial planning is life insurance. From making sure you are responsible with credit so you can build up a high credit score to deciding whether to buy a house or rent an apartment, making financial choices involves weighing pros and cons and knowing how to take the right actions.
The Importance of Life Insurance
Life insurance is, of course, a policy on your life. The insurance policy pays out upon your death if you die during the policy period. For instance, if you buy a $400,000 10-year term life insurance policy and you die within the next ten years when that policy is in force, the death benefit of $400,000 would pay out to your designated beneficiary.
Most people buy life insurance because it allows them to protect the people who are depending on them. For instance, if your income or salary is needed to pay a portion of your family mortgage or to pay for college for your kids, then buying life insurance is very important so that your family’s quality of life does not suffer if you should die an untimely death.
Buying Life Insurance as a Single Women
Because life insurance is intended to take care of beneficiaries upon your death, making the decision as to whether you want to buy life insurance as a single woman is going to depend upon whether you have anyone who is depending on your income. If you have a child or a significant other who you contribute to supporting financially, then it is absolutely essential to have insurance, for example, so you can continue to take care of that person after you are gone.
When considering whether you have anyone depending on your income or not, you should think outside of just the obvious in terms of spouses or kids. Other people may be depending upon you as well. For instance, if you have aging parents who might some day turn to you for medical care or financial support, then you should consider purchasing a life insurance policy to provide them with security for the future. If you have a sibling who depends on you for babysitting and help managing the house and that sibling would need to hire someone without you, then you might want to consider buying a life insurance policy and naming your sibling as the beneficiary.
Thinking of the Future
If you are young and single, you also need to consider your future plans as well. If you are planning to have a family, get married or enter into a significant relationship at some point in the future, then there is a good chance that you will have dependents then even if you do not have anyone who needs your income at this time.
It is always less expensive to buy insurance when you are younger, so you may wish to make the purchase today to save yourself on policy premiums over the course of your life. Your future beneficiaries will thus be covered for far less cost than you would have incurred had you waited to marry or have kids before buying the policy.