What is the first thing that comes to your mind when you think of life insurance? It must be a picture of a family with the father, mother and their two kids. Life insurance or term insurance has always been portrayed as a financial product that is meant exclusively for married people with kids. Although the loss of the breadwinner can lead to one of the biggest financial pains without term insurance, it is also equally important for singles to have life insurance. If you are unmarried or don’t have kids, here are the few reasons why you should get a term plan right now.
The lifestyle of today’s generation is undergoing tremendous change. Smoking, drinking and eating out has become a part of daily life. The long working hours, sedentary lifestyle and lack of quality sleep have aggravated the situation. This has led to an increase in heart diseases and other lifestyle-related issues. It puts lives at risk.
Sometimes unfortunate events take place in people’s life. These can include a critical illness which can burn a hole in your pocket. You may not be even able to work and as a result, lose your job. During this scenario, the entire burden of looking after the hospital expenses may fall on your parents. Hence, in this scenario, term insurance with financial protection against diseases and critical illness cover would have helped.
Paying term insurance every month or every year may seem like a waste of money. You may think that you can put this money to better use by investing in assets that give higher returns or travelling. Having term insurance when you don’t have dependents can be very easy on the pocket. It is because the premium of the term insurance increases as we get old.
Unlike health insurance, the premium of the term insurance remains the same throughout the policy term. Let us take, for example, that you are paying Rs.1,000 per month towards your term insurance policy. You may feel that you are wasting money, but it is not so as you will be paying Rs.1,000 for the entire term. The premium is likely to go up once you age. Once you marry, you can change your nominee’s name, and you can also revise the insurance coverage.
Term insurance is also useful if you have an outstanding loan. You may have taken a loan to finance your education. After you get a job, it becomes your responsibility to pay the loans. Term insurance can be useful in terms of any unfortunate event to repay loans like education loan, car loans or credit card bills.
In addition to providing financial security to your loved ones, life insurance also provides tax deduction of up to Rs.1.5 lakh under Section 80C of the Income tax Act 1961. For critical illness benefits, you can get tax benefits of up to Rs.25,000 under Section 80D.
Conclusion: Term insurance has many benefits and the earlier you do that, the better it will be for you. However, the most significant benefit of life insurance is the total peace of mind as you know that your loved ones will be safe even when you are not around.
Life insurance is not just for married couples. Singles should also buy one. In case of an unfortunate event, the term plan will help your parents arrange for the funeral, look after themselves, pay any outstanding debt. Moreover, getting term insurance when you are single is easy on the wallet, and it comes with tax benefits as well.
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