The overwhelming majority of practitioners and the people we serve are legally married. But as planners market their services to a widening swath of the population, that will not remain the case. Today, according to the U.S. Census Bureau, nearly 11% of American households contain couples living together without benefit of legal sanction, and nearly 26% of households are headed by singles. Whether they are postponing marriage, between marriages, widowed or simply on their own, typical Americans now spend much of their adult lives legally single.

I have worked with dozens of clients who are not currently in a committed relationship and may never choose to be. While their financial issues may overlap those of a married couple, single individuals' needs and options can vary greatly from those of their married, or even coupled, counterparts.

INSURANCE MUSTS

Singles usually have only one source of income: their jobs. If anything disrupts a single person's earning power--most people's largest asset before retirement--there may not be anyone to pick up the slack. If a single person loses a job, he or she must have emergency reserves. If a single person gets sick and can't work, he or she must have disability.

The planner's first priority is to protect a single client's income with disability insurance. Many clients get insurance through their employer, which replaces 60% to 70% of income. But, given that most people spend 90% to 100% or more of their current income, is it reasonable to assume that they can adapt to living on 60% to 70%? And remember: Most benefits terminate after five years or at age 65, whichever is later. What happens then? The client would be forced to try to make it on Social Security plus whatever savings he or she might have accumulated prior to the onset of disability.

In my 18 years working with individual clients I had only one who became permanently disabled. He was in his prime earning years, making an excellent income and saving thousands of dollars a month when he was abruptly struck down with a degenerative neurological disease. In less than two years, what had been a storybook financial-planning situation changed drastically.

Fortunately, this individual had the maximum disability coverage, $5,000 per month through his employer plus an excellent supplemental policy which provided an additional $5,000 per month, tax free. His current after-tax income is about $2,000 per month more than he needs; yet he'll have to save the excess to help offset the huge income drop that will occur at age 65, when both policies terminate.

This is a rare example of an individual who had more than adequate disability protection. Most people in his position would be financially devastated. They don't have enough cash reserves to cover a policy's elimination period, let alone supplement Social Security in retirement.

This is not financial security. We must ensure that our clients have sufficient resources to cover, at the very least, any waiting period before disability benefits kick in. Almost all single working people should obtain the most supplemental, own-occupation, long-term disability insurance they can.

No conversation about disability protection would be sufficient without addressing long-term care insurance as well. Long-term care insurance is appropriate for most Americans. However, I find that middle-aged and younger individuals can't envision themselves needing it. The arguments for long-term care insurance, though, are similar to those for long-term disability insurance. For single clients I recommend long-term care insurance much more frequently, and earlier in life, than for married clients.

ESTATE-PLANNING OBSTACLES

Single clients also often need more advanced estate planning, such as trusts, than their married counterparts at the same asset level, because there is no unlimited marital deduction. Moreover, singles need to appoint a legal trustee to manage their estates, hold their powers of attorney and serve as a healthcare agent. I also often suggest living wills for single clients.

When the first spouse in a couple dies, all assets can pass to the surviving spouse with no federal estate or state inheritance taxes due. In 2006, the estate tax exemption is $2,000,000. If an unmarried client dies with an estate worth more than $2,000,000, the excess will be subject to federal estate taxes. In addition, if the decedent resides in one of 12 states that imposes its own inheritance tax, a part or all of these assets will be taxed again. Because there is no unlimited marital deduction for singles, it may be appropriate to reduce the client's taxable estate as much as reasonable. Therefore, you might want to consider charitable trusts and irrevocable life insurance trusts.

Another major issue for single clients is whom to name as the beneficiary of any legacy they leave. Married individuals typically leave everything to a spouse and then to children. But you have to help single clients think about different options.

I once consulted a highly successful single woman in her early 40s who, at the data-gathering session, became very emotional when I inquired about her beneficiaries. She had no real ties to biological family. She had no children or parents and no nieces or nephews--only an estranged sibling, to whom she didn't want to leave anything. I asked her who and what she did care about. It turns out she had some very dear friends, political causes and an alma mater she wanted to support. Above all, she was very passionate about her business and her products, which she came to see as her primary legacy. She also supported educational, environmental and political causes that complimented her professional work.

What a great opportunity for me to help a client with the issues dearest to her heart. She needed a comprehensive financial plan including life insurance, disability insurance, long-term care insurance, an irrevocable life insurance trust, a charitable gift trust account, a business continuation and succession plan and a living trust. This might be the deluxe package for a single individual.

Another single client was a 70-year-old retired professor who had been divorced for decades and had a son who was financially successful. She was a self-made millionaire who also inherited a substantial estate from her parents. She knew her son didn't need her help, nor did he want her house or most of her personal effects. But she didn't want to be a burden on him either. She had been independent for decades and didn't want that to change.

So she sold her house and bought into a progressive-care retirement facility. To insure her independence, she purchased long-term care insurance. We also set up a charitable remainder trust and transferred her appreciated securities into it. The trust will provide her with monthly income and, at her death, pass the remainder to the charity.

Serving single clients can be a viable niche market for planners, who will have numerous occasions to consult with legally single individuals. These clients may be divorced, widowed or never married--living alone or in a committed relationship. They need our help to develop a plan that will protect them and enable them to achieve their most cherished life goals. They often have as many or more needs, yet fewer resources, then their married counterparts. We must be cognizant of the unique needs, sensitivities and planning strategies that affect this important group.

Sheryl Garrett, CFP, is founder of The Garrett Planning Network (www.garrettplanningnetwork.com). Her turnkey business model for financial advisers and novel approach for reaching untapped client markets have attracted significant media attention since the network's inception in 2000.

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