Do You Need Life Insurance If You Don’t Plan to Have Children?
Originally Posted On: https://www.iquanti.com/
One of the main reasons to have life insurance is to ensure that the people who matter to you don’t face financial hardship–those people may not necessarily be children. Another common reason to have life insurance is to build a legacy which can be passed on to organizations and/or people other than children. There are other types of life insurance other than term life insurance that you can purchase to fulfill other types of goals.
Even if you don’t plan to ever have children, there are still very good reasons to have life insurance. Here are a few reasons why:
- You may be supporting other family members
Children are not the only types of people who can come to depend on you financially. For example, it’s not uncommon for people who support their parents to have life insurance policies that name their parents as beneficiaries. Many couples take out life insurance policies so that their spouse or partner would not face financial hardship.
Generally speaking you can name anyone you like as your beneficiary provided there is reasonable insurable interest, but some restrictions may apply depending on the company you purchase the policy from.
- You’re in a business partnership
Business life insurance policies are not uncommon for business owners who intend to protect their partner(s) from financial hardship. Sometimes the business itself is designated as the beneficiary.
Having a life insurance policy for business owners doesn’t just protect partners, but by helping to ensure the ongoing nature of the business, it provides job protection for employees, contractors and vendors. .
- You want to build a legacy
You don’t have to designate a person as the beneficiary to your life insurance policy. You can also name a charity, estate, or trust.
In this case, you might consider a permanent life insurance policy rather than a term policy. The reason is term policies are only designed to provide a death benefit if you happen to pass away during the term, whereas permanent life insurance will pay a death benefit at the end of your life provided you fulfill the requirements for keeping the policy active.
- Protect your co-signers
If you have someone who co-signed debt for you, such as a private student loan, you want to make sure they won’t have to foot the bill on their own if something were to happen to you. Some types of loans, such as mortgages, may also require you to have some form of life insurance regardless of co-signers.
The bottom line
While having children makes getting life insurance an obvious necessity, deciding not to have children doesn’t make life insurance irrelevant. There are still plenty of good reasons to get some type of life insurance whether or not you have children.