by Michael Cocco, CFP®, Beacon Wealth Partners/AXA Advisors

Not every single, debt-free person needs life insurance. But the vast majority do, for a wide variety of reasons.

1. You don’t want someone else to have to pay your end-of-life and funeral expenses. Without some kind of protection – even a small term life insurance policy – your parents or other relatives will end up paying your funeral costs, if you die unexpectedly. There can be other end-of-life expenses too, like hospital bills or other costs associated with your home, work or personal life.

2. If you’re young and healthy, you’ll get the best rates. Purchasing life insurance when you’re young and healthy (and can breeze through underwriting) may also be cost-effective. That’s because, as you get older (and potentially less healthy), the rates you’ll pay will increase. Why not lock-in low rates now? Buying young can also protect your future insurability, since insurance companies often let you convert from one policy to another or add coverage at a later date, without having to go through most of the underwriting.

3. You want to leave a legacy. You may not have children, but what about nephews, nieces or someone else who depends on you? Make sure they’re taken care of if you’re no longer around. Or, for a small premium, you could leave a legacy to a favorite charity or cause. Life insurance benefits are typically tax-free to the beneficiary.

4. You may not be single or debt-free forever. Many life insurance policies allow you to trade up or add coverage, so buying a small policy before you get married or buy a home may be a good idea. Again, the sooner you purchase life insurance, typically the lower your rates.

5. You make too much to qualify for a Roth IRA, but still want to save more money for retirement. If you make too much income to qualify for a Roth IRA, but have already maxed out your other retirement plans, you may want to consider life insurance. You can pay premiums and your money has the potential to grow tax-deferred, similar to a retirement plan. And, if you do it correctly, you can take loans from the policy income tax-free.

Michael Cocco is a CERTIFIED FINANCIAL PLANNER® professional with Beacon Wealth Partners/AXA Advisors in Nutley. He may be reached at  or (973) 667-8650.

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