Life insurance and health insurance policies are priced based on age and health, so itâ€™s most cost effective to get medical, disability, and life insurance policies while youâ€™re young. Singles donâ€™t need a huge amount of insurance, but they do need to have something. â€śYouâ€™re the sole earner and thereâ€™s no one else to fall back on. If you own a home and get sick or die, whatâ€™s going to happen to that house? That property still has to be paid off,â€ť says Cheryl Broussard, author of The Black Womanâ€™s Guide to Financial Independence (Penguin; $20).
SINGLE WITH CHILDREN
The day before 40-year-old Stacey Rodgers went into labor, she arranged for the father of her now 3-year-old daughter Alexandria to take a medical test for a $200,000 life insurance policy.Â â€śI talked to him about the need for us to think about long-term protection in the event that one of us isnâ€™t here to care for her,â€ť says Rodgers of the conversation she had with her former boyfriend. â€śI took out life insurance on her father to add to her well being. It provides me with security,â€ť Rodgers explains.
Make Sure the Father of Your Child is Insured
â€śIf an individual gives consent and takes the exam, you can take out a policy and own it,â€ť says ShirleyAnn Robertson, an agent with Prudential Insurance in Schaumburg, Illinois. Robertson advises that couples have the conversation early when things are going well in the relationship.
Establish a Trust for Your Childâ€™s Inheritance
Rodgers earns six figures as the director of group insurance at Pearson, the parent company of Financial Times. She puts away 11% of her income into her 401(k) and receives the company match of 6%. Including the life insurance policy on Alexandriaâ€™s father, Rodgers has policies valued at $1.2 million earmarked for her daughter. Her estate also includes her residence in Somerset, New Jersey, and some CDs. She wanted to make sure her wealth was protected in the event of an untimely death. â€śI established a trust so that my assets will be given to my daughter upon milestone birthdays.â€ť