Do I Need a Term Insurance Plan If I Don't Have Dependents?

In India, most people do not consider term insurance until they are married or have children. Many feel that since married people have dependents, they should consider purchasing term insurance. However, there are various reasons to consider term insurance now, even if you aren't in that situation yet. Read on to learn about these arguments in detail. 

Do I Need a Term Insurance Plan If I Don't Have Dependents?

Yes, you do need a term insurance plan, even if you don’t have dependents. Here are some pointers to support the answer. 

• Loans & Debts

  For one thing, even if you die, your debt does not go away completely. Rather, your student loan EMIs, credit card bills, and any other debt you have is passed on to your parents, spouse, or other family members. If this occurs, the death benefit of your term insurance policy will assist your remaining family in meeting financial obligations.

• Future Family

  Few individuals want to be single forever, and while this generation is deferring marriage and children until later in life, it remains a goal for many. So, if you plan on marrying or having children in the near future, purchasing a term insurance policy now, when you are young and healthy, will be significantly less expensive. It is worth noting that a term insurance plan becomes more expensive as you get older.

• Illness

  It's easy for single people, especially those who are younger, to believe that a life of self-reliance and freedom will remain forever. However, the terrible reality is that your situation could rapidly change, and developing a severe condition could have a significant impact on your lifestyle. If you purchase term insurance with critical illness coverage, you will be covered for a lump sum payment if you are diagnosed with a specified condition. This could be used to pay for medical bills, allowing you to avoid having to pay for private care.

• Tax Benefits

  You can save up to Rs 1.5 Lakh on your premium prices under Section 80C of the Income Tax Act. Even the death benefits offered by the insurer when you die are tax-free under Section 10(10D) of the Act. 

• Other Benefits

  Even if you have no dependents and no need for term insurance, you may still benefit from coverage for all of the reasons listed above and more. Furthermore, insuring oneself for only enough to pay your personal burial costs, for example, could result in significantly lower rates than covering an entire household's income.

Endnotes 

Even if you don't think you need term insurance right now, or just need a small amount, it's a good idea to re-evaluate your needs from time to time; don't make a choice and then forget about it. Your requirement for term insurance may fluctuate as your circumstances change.

Also read: What is the Best Age to Buy a Term Insurance Plan?

How to Choose the Best Term Insurance Company?

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.