In India, many people believe that life insurance is meant only for married people or those who have financially dependent parents. Also, many youngsters believe that buying life insurance while they are young and healthy is unnecessary and a waste of money.
However, the insurance advisors suggest that life insurance is vital for all, including singles. Irrespective of your marital status, you must buy a term life insurance plan to safeguard your family’s financial future. If you are not still unconvinced, let us look at the reasons why singles must buy a term insurance policy.
Did you know that term plan has the most affordable premium compared to all life insurance products in the market? Also, age is a critical factor that insurance companies consider while determining the premium.
So, when you are young and single, you can buy the policy at a lower premium; the same plan with the same sum assured may cost you more when you are older. So, buying a term plan is a great way to get insurance cover for singles.
Protects the interest of your dependents
Even though you are single now, you may start a family of your own sooner or later. And you may have family members who depend on you financially. Not having insurance cover at that stage may put your family at risk of not having the financial backup. So, it is better to buy a policy at a lower price when you are single so that your family does not face any financial strain or worry about managing their experience on their own.
Pay off the liabilities
When you are single, you may not have too many financial responsibilities. However, as you grow old, you may acquire certain debts like home, personal, car, or a business loan. If something happens to you before repaying the debt, the repayment burden may fall on your family members. And this can derail their financial planning.
It is better to get term insurance protection when you are single to avoid such a situation. In the event of your unfortunate demise during the policy period, your family can use the death benefit from term insurance to pay off the debts.
Peace of mind
Another significant benefit of buying a term insurance plan when you are single is that it can give you peace of mind knowing that your family will have the financial security they deserve even in your absence. This means, if something happens to you, they can carry on with their usual lifestyle and take care of their expenses. After all, we all work hard every day only to ensure the financial safety of our families, right?
Apart from the above benefits, singles must buy a term plan because it allows them to enjoy tax benefits every year and reduce their tax liability. The premium you pay for term insurance is eligible for tax deduction up to ₹1.5 Lakhs under Section 80C of the IT Act.
A term insurance policy is the best gift you can give yourself and your family. While you are single now, buying a term plan may seem unnecessary, but in the long run, the time, efforts and money you spend on buying it would be worthwhile.