3 Kinds of People Who Need Life Insurance But Probably Don't Have It

Life insurance has many forms, but all of them have the potential to provide support for loved ones and dependents during a very trying time. When the average person thinks about life insurance, they imagine a policy that an older person or a high earner would take out for their spouse or children. And while both of these individuals should absolutely have a life insurance policy for just these cases, these are not the only individuals who should seriously consider life insurance. Here are three of those.

  • Young People and College Students. While it’s a very rare college student that considers taking out life insurance, it is an appropriate choice for more individuals than you might imagine. First of all, roughly 200,000 people under the age of 45 die in America every year1, for a variety of reasons. Many of these individuals have children or other dependents. Another large portion of these have student loans. In many cases, student loans are dissolved if the holder dies, but this is not the case with private student loans and/or student loans with a co-signer. In the event of the individual’s death, these will be paid from the sale of the student’s estate. If the estate is insufficient to service the loan, the debt passes on to family or others. People with these loans (and/or dependents as in the other case above) should consider taking out a life insurance policy equal to the balance of their current student debt.
  • Entrepreneurs. It is common for entrepreneurs to throw everything they have, mentally, physically, and financially, into the success of their business(es). And while this may be a recipe for success if the entrepreneur remains alive and healthy until their business becomes a success, it can be a recipe for disaster if the individual should pass away for whatever reason. Certain debts can be passed on to the family and business partners, as the case may be, especially if the business is highly leveraged. If an entrepreneur has yet to be financially successful, it is important for a life insurance policy to be in place, possibly to provide for a family or spouse, to cover funeral and final expenses, and/or to service debts accrued in business or personal life that fall on the shoulders of family or dependents.
  • Non-employed Parents. Many parents find themselves in a situation where someone works while someone stays home with the kids. It might make sense, at least as far as most people consider the issue, to have life insurance for the wage earner but not for the spouse who stays home. Unfortunately, this is not the most secure option for the average family. While the death of a bread-winner would be difficult, the role of the

“home-maker” is every bit as essential. In the event of that person’s death, the other

parent or spouse might have to quit a job, or spend much more money on childcare.

Final and funeral expenses are also a major factor. Just because an individual doesn’t have a salary doesn’t mean their role is not worth a great deal.

There are many people who would benefit from the security of life insurance – many more than presently take out such policies. Insured individuals provide good insight into the many different walks of life that are covered. If you have direct dependents, or if someone stands to be adversely affected in the event of your death, seriously consider life insurance, and a provider that keeps you informed.

1Source: http://www.worldlifeexpectancy.com/usa-cause-of-death-by-age-and-gender

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