Michael Mullarney : Estate Strategies Group - But I'm Single, Why Do I Need Life Insurance? : Article: But I'm Single, Why Do I Need Life Insurance?

But I'm Single, Why Do I Need Life Insurance?

Many people think you have to be married with children to need life insurance. As a single person, you should think twice before you dismiss it. You may not have an immediate need for it, but what about your future?

Would you like to marry and start a family some day? Will there be a time when others will rely on you financially? Purchasing life insurance at a young age when you're in good health locks in coverage at a lower premium and ensures you will have insurance to help you protect your financial future.

A First Step

If you can't afford to purchase a whole life policy, a term policy will help you keep costs down and you can upgrade to a whole life policy in the future. Should you choose to upgrade at a later time, the new whole life premiums will be based on your health at the time you purchased the term policy, regardless of your health at the time you upgrade.

While there are many factors to think through with regard to your short- and long-term financial needs and goals, talking with a financial representative can help. A trusted representative can help you decide what kind of insurance is best for you and how much you may need in order to achieve financial security in the long run.

A Future Nest Egg or Emergency Fund

Assume a policy is purchased on a child in perfect health. At adulthood, the accumulated cash value of a permanent life insurance policy can be substantial.

Take for example, a policy issued on a healthy baby boy 18 years ago with an original face amount of $100,000 with an annual premium of $598. Today, that policy's face amount would have grown to $157,861 with a cash value of $14,775* College costs, a wedding, or a first home purchase -- all items where a potential financial resource could come in handy.

Life insurance is one way to help you manage some of life's risks and is an important part of a sound financial solution. The financial goals you have for today may be simple and few, but keeping the future in mind can help you reach the financial goals of a lifetime.

*Based on an actual NN 65 Life policy issued by Northwestern Mutual in 1991, male age 0, select, all premiums paid in cash, dividends used to purchase paid-up additions, 2008 dividend scale interest rate. Dividends are not guaranteed. The dividend rate is reviewed annually and subject to change. By surrendering or borrowing part of a policy's cash value, the death benefit and cash value will be affected.

Depending on the products and/or services being recommended or considered, refer to the appropriate disclosure brochure for important information on the Northwestern Mutual Wealth Management Company, its services, fees and conflicts of interest before investing or engaging in financial planning services. To obtain a copy of one or more of these brochures, contact your representative.

Estate Strategies Group (ESG) is a division of Northwestern Mutual Wealth Management Company®, Milwaukee, WI (WMC). Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM), and its subsidiaries and affiliates.

Michael J Mullarney is a Representative of Northwestern Mutual Wealth Management Company®, Milwaukee, WI (WMC), a wholly-owned company of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM), and limited purpose federal savings bank. All financial planning, investment management and trust services are offered only through WMC by properly credentialed Representatives who operate from agency offices of WMC. WMC is not a broker-dealer or insurance company and does not offer insurance products or brokerage services. Representative is an Insurance Agent of NM (life insurance, annuities and disability income insurance) and Northwestern Long Term Care Insurance Company, Milwaukee, WI, a subsidiary of NM (long-term care insurance), and a Registered Representative of Northwestern Mutual Investment Services, LLC (NMIS), 875 3rd Ave Fl 23, New York, NY 10022-7250, 212-867-8989, a wholly-owned company of NM, registered investment adviser, broker-dealer and member FINRA (www.finra.org) and SIPC (www.sipc.org). Representative may also be an Investment Adviser Representative of NMIS. All brokerage services are offered only by NMIS. NM and The Russo Financial Group are not broker-dealers, registered investment advisers or federal savings banks. There may be instances when this agent represents insurance companies in addition to NM or its affiliates.

Investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, NMWMC or its affiliates and are subject to investment risks, including possible loss of the principal amount invested.

The products and services referenced are offered and sold only by appropriately appointed and licensed entities and Network Representatives. Network Representatives and their staff might not represent all entities shown or provide all the services discussed on this Web site. Not all products and services are available in all states.

Michael J Mullarney is primarily licensed in New York and may be licensed in other states.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, Certified Financial Planner and CFP (with flame logo)®, which it awards to individuals who successfully complete initial and ongoing certification requirements.