Should a Single person buy Life Insurance?
One of the common perceptions amongst people is that if you’re single then why to unnecessary waste your precious money on life insurance policy. They feel since a single people do not have spouse and children, insurance is an unnecessary expenditure for them. However, there are several reasons beneficial and logical why and when single people should also buy life insurance. This article discusses those reasons.
It is agreed that a single person will not have spouse and children to take care of, but there might be other family members who may be financially impacted by an unfortunate death of that person.
The way to judge an insurance policy is not that a person is single or not, but if he or she has number of dependents? So if you have family members like parents and siblings who are financially dependent on you, then buying a suitable life insurance makes sense.
Many a times we are concerned how much should be the cover. Just remember your cover or sum assured should cover your debt, provide for the income needs of your dependents and meet their future obligations in the event of an untimely death.
When you’re young it is your parents who give you better and healthy lifestyle. When you grow up may be your parents are not financially dependent on you, but they may have taken some sort loans for your better education and expecting that one fine day you’ll help them clear of the debts.
In the event of your untimely death, your parents will be liable for the outstanding loan. In such cases, you should buy life insurance. Similarly if you have co-signed a home loan with your parents, then think about hardships they will have to face in the event of your untimely death.
Insurance policy gives you an additional advantage of tax benefit. As your income increases, the tax bracket also widens. The most apt method to save your hard earned rupee is through investment in insurance policies. Many people who hesitate to buy an insurance should realize that there are many insurance schemes in India which offer tax benefits on premium payments under Section 80C of the Income Tax Act, tax rebates and tax benefits in cases of claims made and maturity amounts received under 10(10)(d) of the Income Tax Act. So, buy taking an insurance policy would be like killing two birds in one stone – gain tax benefits and avail financial security
Life Insurance premium is considerably cheaper when you are young. The trade off is between the premiums you pay in the years when you do not have dependents and the overall savings over the term of the policy.
Thus, the possibilities are endless and blessings you get lasts forever. A single person buying a policy could be for any reason such as planning to leave an estate to a loved one or to a charitable trust, supporting college education or weddings of younger siblings, nephews and nieces or securing the future of their age old parents.