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Does someone single need life insurance?

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    #16
    With my 401K and IRA my family can throw me a very nice funeral.

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      #17
      The younger you are, the cheaper it is. If s/he plans on having kids, house soon then it might not be a bad idea to get a 20 year term policy.

      Do not buy whole/variable life policies.

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        #18
        Not meaning to hijack the original post, but what if you are single due to a divorce and have kids (2). She has the kids and the house. Do you still need to have life insurance. I currently have a small term life police (approx equal to 1 year salary).

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          #19
          Originally posted by DelayedFlop View Post
          Not meaning to hijack the original post, but what if you are single due to a divorce and have kids (2). She has the kids and the house. Do you still need to have life insurance. I currently have a small term life police (approx equal to 1 year salary).
          I'm in a similar situation, and I say "yes".

          I have life insurance policies out on myself and all of my children.

          They're the smallest available that is offered by my employer, and honestly, they don't cost much at all. I think my three kids total less than $2 per month in premium....

          However, should anything happen to the kids, then at least there will be some money to help defray costs... since it's reasonable that both parties-- even if they are divorced-- should help pay for funeral expenses, and this will at least help cover your end of the tab....

          Retirement money, I believe, can be rolled on to your next of kin or beneficiary. I'll have to double check on that, but I'd rather do that...

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            #20
            Originally posted by DelayedFlop View Post
            what if you are single due to a divorce and have kids (2). She has the kids and the house. Do you still need to have life insurance.
            You need to have life insurance if anyone is financially dependent on you. So if you are a single parent and you are supporting 2 kids, you need insurance. Also, you should have a will and it should name a guardian for the kids if you were to die. Actually, all parents should have that.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

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              #21
              Originally posted by Broken Arrow View Post
              Retirement money, I believe, can be rolled on to your next of kin or beneficiary. I'll have to double check on that, but I'd rather do that...
              There are different categories of retirement money. Pre-tax money such as a 401K can be tricky. Each 401K has different rules, but most want the money kicked out of the fund ASAP in the case of the untimely death of the account owner.

              The rules (for DHes and my 401k, anyway) have changed in the past couple of years. It used to be non-spouses could only take a lump sum distribution and that could have a serious impact to the beneficiaries tax situation. Now, in addition to a lump sum distribution, non-spouse beneficiaries have an addtional choice: they can do a partial or total direct transfer of the 401K funds directly into a decedent IRA. (The key is it has to be a direct transfer.) The decendent IRA spreads the distributions out over the lifetime of the beneficiary. The rules governing inherited IRAs are complicated and it is recommended to seek advice of a tax professional before making a transfer (or distribution).

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