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Special needs of divorced people, singles for Life Insurance
Divorced people have special insurance needs. If you fall into that category, you'd better dig out your divorce agreement. It may stipulate that you have to keep a certain amount of life insurance in force for your ex-spouse or to pay your part of your children's education. Even if your divorce agreement doesn't require it, if you have children, you should have life insurance in order to leave them an inheritance and to cover your part of their college costs.
Single people are often told that they don't need insurance, or that the small policy that comes with their work benefits is enough. In many cases, that's absolutely right. If you lead a simple life with no mortgage and no significant other, a life insurance policy may just be an unnecessary expense.
There are certain instances where you may need it, however. If one of these scenarios applies to you, start thinking about life insurance:
- · You have a mortgage that is more than the value of your house.
- · A relative has co-signed on your mortgage; having it paid off immediately at your death means he does not have to make monthly payments until your home is sold, were you to die with not enough insurance coverage.
- · You have a friend or relative to whom you want to leave money.
- · You have bought a house with your live-in partner and you have an agreement that each person's share of the mortgage is to be paid off upon his or her death.
- · Your parents won't be able to manage financially if you're not around.
- · You want to leave money to a charity or other nonprofit organization.
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