Most single people think they don’t need life insurance. After all, who’s going to be the beneficiary? What you may not realize is what a powerful financial tool it can be.

Did you know that whole life insurance also includes a cash value component? Advantages include:

• Tax-free accumulation that can be used as a stream of income as part of a diversified portfolio.
• If there are any expensive medical emergencies, you can borrow funds from the cash accumulated in the policy.
• Once the cash value of the policy grows, it can be used to pay your premiums, thus lowering your monthly expenses.

There are also riders available for your policy that can be added for Living Benefits, Disability Waiver of Premium, Income Protection Options, and more.

You can also choose a life insurance policy that is linked to a stock market index. Indexed universal life (IUL) insurance allows you to have a lower death benefit, but a greater cash value that will grow income tax free. May policies offer an interest rate guarantee, which can limit your losses when the market fluctuates.

What do you do if you don’t have family to take care of you when you’re older? Long-term care (LTC) insurance is essential for a single person. It protects your retirement savings and gives you the ability to have someone provide the daily living essentials you may need as you age. LTC insurance covers expenses for amazing home caregivers and nursing homes. It provides coverage associated with daily living activities such as eating, bathing, dressing, and other needs. It may also be used for chronic illness or injuries that require extended rehab.

How does having an annuity work for a single person? An annuity can act like a pension, providing you with long-term security and a safe place to grow your assets for retirement.