Why should a Single Person have Life Insurance Plan?

Written by : Knowledge Centre Team

2021-10-29

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Numerous individuals in the present times hold this misconception that life insurance is only for married people or for people who have parents or spouses relying on them financially. Also, many young people who are healthy and single usually contemplate life insurance plan as a waste of money and neglect it.

However, contradictory to these popular beliefs, you must note that life insurance is equally important for singles. Also, according to many financial advisors, every person must possess life insurance regardless of their status to ensure a financially guarded and secured future.

Why Unmarried People should Buy Life Insurance Plan?

As stated above, many individuals believe that life insurance for singles is a waste of money. Hence, after hearing this million times, the most common question arises in individuals' minds: Is life insurance worth it for a single person?

Mentioned below are some of the prominent reasons why single people must consider buying life insurance.

1. Helps in starting a new business

To start a new business, people always require a big pool of funds. Also, if you start a business with your partner, and something unfortunate happens, it may result in a financial setback for your organization.

However, with a life insurance coverage plan, you don't have to worry about these issues as it can help your business and your partner financially and mentally. Furthermore, if your business is in debt or has financial problems, a life insurance plan may be an effective way to solve these problems.

2. Helps in increasing your wealth

There are two different types of term life policies: universal policies and whole life policies. The whole life policy places more emphasis on the long term with fixed premiums and death benefits. On the other hand, a universal policy is more flexible in terms of payments and benefits.

Also, the additional advantages of these two policies are the accumulation of wealth. The accumulated money can then be used to augment your wealth or put into a pension plan. Invest 4G Plan is a unit-linked savings plan that offers you with assured yields to help you fulfil all your long term goals.

3. Helps in securing the future of your parents or future spouse

If you are a single person who wishes to safeguard your parents and your future spouse, then owning a life insurance policy can be the most beneficial thing. Taking a life insurance policy will ensure that in case anything unfortunate happens to you. The money from insurance will be given to your future spouse or parents so that they can meet all their financial obligations with ease.

In addition to this, you must further ensure that the policy amount you choose is sufficient enough to cover all the future expenses of your loved ones in your absence.

Read these 5 benefits of gifting life insurance cover to your spouse.

4. Help to pay your student loan

A life insurance policy also assists you with your student loan during your studies. If you took out a private loan, then the debts might not be forgiven even after your demise.

Therefore, it's a good time to purchase a life insurance policy if you have a student loan. In addition, you are always advised to opt for a coverage amount that is higher than your education loan sum so that you don't run out of repayment money.

5. Premium would be less

In terms of expenditures, young people today are extremely careful. So, when talking about purchasing a life insurance policy, they consider it a waste of money. However, if they don't buy term insurance at the right time, they may need to pay more than they need to pay now to acquire term insurance as the amount of premium for older people is more when compared to youngsters.

Factors Affecting Life Insurance Premiums | Life Insurance Plans

6. You will get tax benefits

A life insurance policy covers a person's life and protects their finances by offering many tax benefits according to the tax laws. According to section 80C of the Indian Income Tax Act, premiums paid into an insurance policy are eligible for tax relief of up to 1.5 lakhs. Also, the biggest advantage of having life insurance is that you will have peace of mind about your and your family's security.

7. Life insurance also covers your health

Previously, the term "disease" was commonly associated with elderly people. However, in today's modern world, where modernization has become a driving force in many people's lives, the mortality rate for all age groups is steadily increasing. According to a recent study, 28 percent of heart attacks occur in Indian men below 40 years.

The fact that disease knows no age applies accurately here. Hence, it is advisable to purchase life insurance to avoid future troubles. iSelect Smart360 Term Plan is another term insurance plan that is the most preferred choice of investors due to its assured returns and affordable premiums.

Purchasing a life insurance plan when you are single can present you with a plethora of advantages. If you are looking for comprehensive term insurance plans to invest your funds in, you can pick one of these extensive life insurance plans by Canara HSBC Life Insurance.

All these points discussed above are enough to make you aware of the benefits of purchasing life insurance when you are single. Get your life insured now.

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