Written by
Updated :
Reviewed by
Most people have the opinion that insurance plans are only meant for married people. This thought is attributed to the fact that only after getting married, you need better financial management. It’s true that marriage brings a lot of responsibilities in the form of the spouse and eventually, children but there are enough reasons to buy term insurance even if you are unmarried. Let’s discuss them:
1. There are term insurance policies which cover your health as well
Most of the people associate diseases with old people only. However, the harsh reality of today’s lifestyle is that 25% of all heart attacks in Indian men occur under the age of 40. (Source: Indian Heart Association)
The odd working hours, poor dietary habits coupled with drinking and smoking, have degraded the situation. Indeed, to stay ahead in the corporate race, generation Y has put its health at stake.
Remember that disease knows no age, race, creed or color and can strike anyone at any time. What would happen if you are detected with a critical disease? Do you think either you or your parents would be able to bear the hefty medical expenses? Or worse, what if you lose your job, do you think your family would be able to handle your medical expenses alone? Instead of scratching your head, think of purchasing a term insurance policy that offers comprehensive financial protection against diseases as well.
2. You will have to pay more later
Term Cover |
Rs 1crore |
Rs 1 crore |
Tenure |
30 years |
30 years |
Term policy bought at the age of |
25 |
30 |
Premium (in Rs.) |
6,372 |
7,906 |
Source: https://www.maxlifeinsurance.com/online-insurance-plans/online-term-plan-plus/get-quote/TCOTP
Most of the youngsters who have just started their career are extremely conscious when it comes to spending money. They don’t buy term insurance as they think there are other ‘important’ things where they can invest money. However, by not buying life insurance now, they actually have to spend more in the future. As you grow old, the premium of a term insurance policy also increases, and therefore, it is good to purchase the policy, when you are young and healthy.
Moreover, unlike health insurance policy, the premium of a term insurance policy remains fixed throughout the policy term. It means, if you buy the policy now, your premium gets locked, and even when you are married, you will be paying the same premium. Here’s the case of Rahul who would require paying a high premium if he postpones the idea of buying a term insurance policy by five years.
After marriage, you can update your insurance portfolio and make your spouse the nominee in your term insurance plan. At that time, you can also revise your insurance coverage as per the current scenario.
3. Repayment of financial liabilities
You or your parents might have taken an education loan to finance your education. Once you get the job, it becomes your responsibility to repay the loan. So, buy term insurance so that the money can be used to repay loans like education loan, car loan along with credit card dues, in case something unfortunate happens to you.
4. It offers tax benefits
In addition to offering financial security, a term insurance policy also offers tax benefits as per prevailing tax laws. As per Section 80C of the Income Tax Act, 1961, the premium paid towards term insurance policy gets a tax deduction for up to Rs 1.5 lakh. Similarly, for critical illness benefits, you can get tax benefits for up to Rs 25,000 under Section 80D. Moreover, the benefits received by your family will also be tax-exempt.
Term insurance plans have a lot of benefits for you when you opt for one. There are emotional reasons and practical reasons because of which you should opt for term insurance plans while you are still single. The biggest benefit offered by these plans is that you get total peace of mind as far as your family is concerned. After starting term insurance, you will be relieved to know that the needs of your loved ones are securely covered after you leave for your final abode.
Conclusion:
Hope that we were able to burst the myth that term insurance is only useful for married couples. The reasons mentioned above should be properly looked at and should form your basis to go for the right term insurance for yourself.
Disclaimer: Tax benefits are in accordance to prevailing provisions of section and subject to fulfillment of conditions mentioned therein. Policyholders are advised to seek tax consultants view for more clarity.
ARN: Jan/Bg/18
