You might think that investing means choosing among
stocks,
bonds,
and
mutual funds.
But as a single person, insurance may be an equally important investment in your future. You buy insurance to provide protection against worst-case scenarios. You probably realize the importance of health insurance, but have you ever considered disability insurance?
A disability policy is designed to provide a certain percentage of your salary if you become sick or disabled and can’t work. That might allow you to remain financially independent while you recuperate from illness. The income from a disability insurance policy can protect you from having to dip into your savings, leaving retirement plans and other assets safe for the future.
There’s one type of insurance that might not make sense for people on their own — life insurance. If you don’t have children or anyone who depends on you for financial support, the primary reason to pay for a policy would be to cover final expenses. However, if you do support children or perhaps an elderly parent, it’s essential that you have life insurance to provide for them in the case of your death.
