Don’t have enough life insurance, or don’t have any life insurance at all? You’re not alone. According to a study from Bankrate.com, four in 10 Americans don’t have any life insurance. Of the 60 percent of Americans who do have insurance, nearly half of them may not have enough.1

Why don’t they address their life insurance discrepancy? There are a number of reasons. They may believe they can’t afford it. They might not have the time to compare options. And, some may feel they don’t have a need for life insurance coverage, possibly because they don’t have any financial dependents.

If you fall into the last group, it might be time to reconsider your perspective. While life insurance is frequently used to provide financial protection to children, spouses and others who may depend on your income, there are other reasons to consider life insurance protection.

Below are three reasons why you may need life insurance even if you don’t have dependents. If any of these sound familiar, you may want to consult with your financial professional.


1. You are purchasing a home.

Are you in the process of buying a home or a piece of property? Will you use a mortgage to finance the transaction? If so, you may need life insurance before the deal will close. Many lenders require borrowers to have life insurance in place to cover any remaining mortgage balance should the borrower pass away.

Even if your lender doesn’t require insurance, it could still be a good idea. Your mortgage won’t get wiped away just because you died. Instead, your family or friends will have to sell the property. If they sell it at a loss, other assets in your estate may have to be used to cover the balance.

The good news is term insurance can be an effective strategy for this type of need. Term insurance is used to provide coverage for a limited period of time, such as the duration of a mortgage. It’s usually affordable, and once your mortgage is paid off, you can consider getting rid of the coverage.


2. You own a business.

Business ownership can be a rewarding and fulfilling experience. However, it can also bring some unique risks. One of the biggest is what would happen to the business should you pass away unexpectedly. This is especially problematic if the business is built around your talents or expertise.

If you pass away, consider what might happen to your employees, customers and lenders. Is there anyone available to step in and run the business? Would your business have enough cash flow to stay afloat until the situation got sorted? Would your employees still get paid?

Life insurance can provide much needed cash to help your business make payroll, pay bills and meet other obligations after your death. You can also set up a buy-sell agreement to help a successor take control of the business after you pass away. Life insurance could help that successor finance the transaction and make sure your estate gets fair value for the business.


3. You may need to take care of your parents.

It’s not uncommon these days for children to take care of their elderly parents, either in the form of financial support or actual in-home care. The rise of cognitive diseases like Alzheimer’s has made it necessary for many elderly parents to turn to their children for support.

Consider what may happen if you pass away unexpectedly and your parent is left without your care. Would they have the resources to hire new in-home help? Could they afford to move into a long-term care facility?

If you are providing care for your parents or if you may need to in the future, you may want to consider a term insurance policy to provide liquidity in the event of your death. Those funds could be used to ensure that your parent continues to receive the best possible care.

Think you may need additional life insurance coverage? Contact us at Spicer Wealth Management for more information. As financial professionals located in Dayton, Ohio, we have helped individuals just like you for more than three decades. We can help you determine your life insurance needs and can recommend possible strategies.



This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

15607 – 2016/4/28