Term Life vs. Whole Life Insurance for Singles

By Compuquotes Team on March 26th, 2008

If you are single, then you might not be thinking about how life insurance can possibly apply to your life right now. Still, if something should happen to you now someone out there will have to take on the burden, financial and otherwise, of your funeral. Also, life insurance is the kind of thing that stays with you for your entire life, and the earlier you get it, the better off you are at a later date. Let's take a look at why life insurance really is for you, and how to choose between whole life and term life insurance.

Buying a life insurance policy now will lock in your rate for the lifetime of your policy (or your own lifetime in the case of a whole life insurance policy). This means that you will be paying the rates for a healthy twenty year old (or however old you are) for the duration of your policy no matter how old or sick you might get in the mean time. This is a great investment toward the day when you are no longer a swinging single.

When you are ready to settle down and enjoy family life, your family will already be protected. In the awful event that you die young, your parents, partner, or other relative will have a buffer from the heavy burden that a funeral can be. Life insurance is a great thing to invest in, and the younger you are, the better the investment is. Speaking of investment, whole life insurance will also earn you a cash balance that can be borrowed against as your policy ages should you need it. You can also cancel your policy and take this balance as a lump sum.

So now that you can see why life insurance is a good idea, even for a single person, what kind of investment should you make? In the case of someone without dependents, a whole life insurance policy is usually the best bet. A term life insurance policy is best to help defer the risk of a loan for something like a new car or for extra coverage during child rearing years. Since you are not concerned yet about your financial burden passing to a spouse, you do not need to worry about term life insurance.

Whole life insurance, on the other hand, will help defer the cost of funeral arrangements, and will last your entire lifetime as long as you continue to make payments. You can add term life insurance over time to take care of that theoretical spouse or those children you may one day have, but your whole life insurance policy - locked in now at that great rate - will continue to cover you through retirement and on into your golden years.

Taking responsibility and looking into the future now will have you thanking your lucky stars in a few years when you are looking at a whole new way of life. You will be glad that you had the foresight to take care of business while you were still young, and will continue to be covered throughout your entire life. Congratulations for making a great choice.

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