Here is the next installment in our the Reader’s Questions Series which highlight questions emailed to me by you, the readers of Money Q&A. Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover if your money question is chosen to be featured a future week’s blog post.
If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It is one of the best personal finance books that everyone should read. Now….on to our reader’s question.This week’s Reader Question is from Michelle in Fargo, ND. She asks…
Do single people need life insurance?
This is a great question that I hear quite regularly actually, and it all stems from people not understand the true purpose of life insurance.
Do single people need life insurance if they do not have an heir or someone that they look after or who relies on their income?
The True Purpose Of Life Insurance
Life insurance is meant to protect your most valuable asset, your income stream. More importantly, it is designed to protect your future income stream should you die a premature death. Life insurance protects your income and replaces it for your loved ones who depend on it in order to survive and live day to day.
So, if you have no one who depends on your income to live such as a spouse or children, then you most likely do not need life insurance. This is a prime example of why children do not need their own life insurance policies.