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Life Insurance :: Childless? You Still Need Life Insurance!

A lot of people living without children, married or not, have the reckless minds of youth. They think that if they die, it doesn't matter to anyone. It won't put a burden on anyone. Or, if they are worried about their spouse, they think that there is enough money to take care of him or her, or that he or she has a job, or the house is paid off and they don't need the income.

There's a problem with this thinking.

It's wrong.

The fact is, we insure our lives for more reasons than simple financial security for children or relatives. However, even if you think you don't have to worry about financial security for them because you are wealthy, think again!

Starting in 2011, the Estate Tax is going to be a significant obstacle to passing on wealth in the event of the property-holder's death. With an estate worth $1 million, 40% of the value passing on to a spouse or relative will be taxed! So, from $1 million your spouse only get $600k. Now is that enough to maintain all the other properties, payments, and the standard of living that he or she is used to without your income? If it's not, you may have to rethink getting a policy.

The death payout on your policy could have been put into an account to cover the costs of transference of ownership.

Replacing lost income is a major reason to get it, but there are others.

When you insure your life, you are insuring your own personal financial security in retirement.

Whole life policies often come with payouts at a certain age if you have not died. In that light, it is more of a financial investment than insurance. Say your retirement investments go bust—which is not unlikely in the foreseeable market—what do you do? Well, your payout is a kind of guaranteed source of retirement income. It is as safe an investment as you can get and it still benefits you every month you are paying.

As a part of your investment portfolio, you can borrow against the worth in cash of your policy, untaxed, with just about no interest, as an income source.

Think you're always making the safe choice? Then whether you have children or not, you should look into getting a policy taken out. For consistency's sake!

Of course, some people really don't need insurance.

If you have a net worth of over $5 million, no spouse, no children, and you don't care what happens to your property and holdings or the people you pass them on to when you pass, then by all means don't take out a life insurance policy. Use the money you would pay monthly for something else.

For the rest of the world, the 99%, life insurance is a great way to guarantee you and your loved ones' financial security in the face of inflation, taxes, loss of income, and all the payments they will have to make to cover death expenses and movement of property. Life insurance has never been easier get, as companies are looking to sign on the two-thirds of America that go without it.

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