7 Reasons Why Single Individuals Need to Buy Life Insurance

Being a way to protect your family financially after your demise, a life insurance policy is not necessarily meant for married people with children only. It can be equally beneficial to single people with parents and loved ones. Moreover, it is advisable to purchase a life insurance policy at a young age to get high coverage and lower premium rates. Read on to more reasons why single people should buy life insurance.

Why Should Single People Buy A Life Insurance Policy? 

Here are seven reasons to convince single people to buy a suitable life insurance policy for themselves.

1. Get High Coverage at Low Premium

People often buy life insurance at the later phase of their lives. Still, purchasing the right insurance policy when you start earning a stable income is advisable to get high coverage at a low premium payment amount. You can compare different plans offered by other insurers to choose the most suitable plan. 

2. Debt Repayment

Debts like a student loan or home loan could be paid through a life insurance policy if the life assured passes away before the repayment. Therefore, you can ensure that the financial burden does not fall onto your already grieving parent’s shoulders. It is advisable to consider the loan repayment obligations while deciding your coverage and term duration to get the maximum benefits from your life insurance policy. 

3. Family History of Illness 

The high expenses of severe medical conditions often leave people emotionally and financially drained. The additional rider benefit of critical illness cover on the life insurance policy helps in the payment of hospitalization, medical treatment, post-hospitalization costs and care etc., if you have a family history of critical illness like cancer, heart disease or kidney failure. 

4. Benefits During an Accident

Life is full of uncertainties, and one can never predict an unfortunate accident. In this case, a death cover rider with additional accident cover would help in covering the incidental costs if the policyholder dies in an accident.

5. Ensure the Security of your Dependents and Family

Being social animals, humans spend their life connecting with people and forming genuine friendships and bonds. You may have parents, siblings, children, friends or relatives who are dependent on you and will require financial security if anything happens to you. A life insurance policy is an excellent way to ensure the continuity of their lifestyle and future goals and aspirations. 

6. Tax Benefits 

A life insurance policy also provides tax benefits to the life assured of a maximum amount of Rs. 1.5 Lakh on the payable premium under Section 80C of the Income Tax Act.  In addition to this, Section 10 (10D) of the Income Tax Act provides tax exemption on the death benefits to the beneficiary if the life assured dies. 

7. Getting Married and Planning Your Future

Marriage comes with a lot of responsibilities for both spouses. A life insurance policy is a good way to start planning your future finances like a child’s education, marriage, retirement planning etc. There are different policies for different purposes. For example, a child’s insurance plan will help provide a safety net for your child during significant life phases like education, marriage etc. A retirement plan will help in ensuring income generation through pensions even after your retirement. Hence, it is advisable to buy your insurance policy after careful assessment of your needs.

Endnote

There is no age limit to start making better financial decisions. Moreover, the earlier you start, the more beneficial the results will be. You can always consult a financial advisor or an insurance agent in case of any confusion. So, start investing early to create a better future for yourself and your loved ones. 

Also read 

How Much Term Insurance Cover Do I Need?

Term Insurance vs Life Insurance

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.