Term Life Insurance Articles
Should I Get Life Insurance If I'm Divorced
2009-10-24
It may seem distasteful to think of death in terms of its monetary elements, but the fact is that there are major financial consequences to a person's passing. Funeral costs, debt repayment and the continued financial support of dependents can become a huge financial burden on loved ones. Life insurance can be a blessing to those left behind to deal with the financial burdens of a family member's passing. It's easy to see why this is an important part of the financial planning of someone with a family to support. But what about someone who is divorced? Is life insurance still a smart investment?
The main purpose of life insurance is to ensure the financial support of those left behind. Even when the support of a former spouse is no longer an issue, it is important to remember the ongoing financial needs of children when deciding whether to invest in life insurance. For adult children, life insurance can ease the burden of funeral costs and other expenses associated with settling an estate. In the absence of any children, there may still be family members, such as ailing parents, who are receiving financial support. Life insurance would aid in the continued support of these loved ones.
When there are no children from a marriage and no other dependent family members, the decision to invest in life insurance can be less obvious. Some financial advisers advocate investing in life insurance when an individual is young, healthy and financially stable, even when its benefits are not necessarily needed. This is seen as a way to plan for a future that may involve another spouse or children. Another reason one might choose to get life insurance without any dependents is the investment benefits it can provide. Certain types of life insurance policies earn more money over time, and it's beneficial to start the policy earlier so that benefits have time to build up. Other types of plans, however, such as term life insurance, may not be as beneficial. If one outlives the term of this policy (usually 10, 15, 20 or 30 years) there is no payout and they do not build in value over time.
The benefits of life insurance to an individual with children or other types of dependents are numerous, and apply regardless of marital status. For a divorced person without dependents, however, there are several decisions that must be made in order to determine whether life insurance is a wise investment choice. In many cases, other types of investments may be more beneficial. If, however, a person anticipates remarrying again later it may be advisable to invest in a good life insurance plan sooner than later.
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It may seem distasteful to think of death in terms of its monetary elements, but the fact is that there are major financial consequences to a person's passing. Funeral costs, debt repayment and the continued financial support of dependents can become a huge financial burden on loved ones. Life insurance can be a blessing to those left behind to deal with the financial burdens of a family member's passing. It's easy to see why this is an important part of the financial planning of someone with a family to support. But what about someone who is divorced? Is life insurance still a smart investment?
The main purpose of life insurance is to ensure the financial support of those left behind. Even when the support of a former spouse is no longer an issue, it is important to remember the ongoing financial needs of children when deciding whether to invest in life insurance. For adult children, life insurance can ease the burden of funeral costs and other expenses associated with settling an estate. In the absence of any children, there may still be family members, such as ailing parents, who are receiving financial support. Life insurance would aid in the continued support of these loved ones.
When there are no children from a marriage and no other dependent family members, the decision to invest in life insurance can be less obvious. Some financial advisers advocate investing in life insurance when an individual is young, healthy and financially stable, even when its benefits are not necessarily needed. This is seen as a way to plan for a future that may involve another spouse or children. Another reason one might choose to get life insurance without any dependents is the investment benefits it can provide. Certain types of life insurance policies earn more money over time, and it's beneficial to start the policy earlier so that benefits have time to build up. Other types of plans, however, such as term life insurance, may not be as beneficial. If one outlives the term of this policy (usually 10, 15, 20 or 30 years) there is no payout and they do not build in value over time.
The benefits of life insurance to an individual with children or other types of dependents are numerous, and apply regardless of marital status. For a divorced person without dependents, however, there are several decisions that must be made in order to determine whether life insurance is a wise investment choice. In many cases, other types of investments may be more beneficial. If, however, a person anticipates remarrying again later it may be advisable to invest in a good life insurance plan sooner than later.
