Should I Consider Buying Life Insurance If I Am Single?
What is life insurance?
A life insurance plan is a financial tool that helps you protect your family’s life goals and secure their future financially. It is simply a contract between a life insurance provider and the insured person, for a consideration of premium, and it is valid for a specific period known as the policy term. In case the insured person passes away during this policy term, death benefits are paid out to their nominees.
Do you really need a life cover if you are single?
As you’ve seen from the details of the answer to ‘what is life insurance,’ a life cover is primarily beneficial because it helps you secure your family financially. So, what happens if you are single? Do you still need a life insurance cover? As it turns out, having a life cover in place is also beneficial to single people in many ways.
Here is why you really need a life cover even if you are single
1. It takes care of your dependent parents
Even if you are not married, you may have dependent parents. In case something untoward happens, they need some kind of financial security to fall back on. A life cover can offer you and your parents this kind of safety net.
2. It covers your debts
You may also have many debts at this age, like an education loan that you may have taken for your college expenses, or a home loan taken for buying your first house. In addition to this, you may also have personal loans. A life insurance policy ensures that in your absence, your parents are not burdened by these debts.
3. It can help you create wealth
Life insurance may also help create wealth through market-linked investments. Specifically, products like Unit Linked Insurance Plans (ULIPs) help you invest in equity funds, debt funds or a mix of both. This opens up the possibility of earning market-linked returns.
4. You can lock in low premium rates
Waiting to buy life insurance till you get married or have a child may not be a good idea. By that time, you will be older, and premium rates for a life insurance policy will also correspondingly increase. Instead, if you buy life insurance, at a younger age, you can lock in low premium rates.
5. You can buy coverage for your future family
You may be single now, but at a later point in life, you may get married and have a family of your own. Buying a life cover today can help you have a readymade security blanket for your future family.
Which type of life insurance should you opt for?
Now that you are aware of the many benefits of life insurance for single people, you may be unsure of which type of life cover to opt for. There are different types of life insurance available, and they each have their own unique benefits. Check out these benefits below and pick the kind of life cover that will be suitable for you.
● Term insurance
Term insurance is a pure life cover that offers only death benefits. It is also the simplest and most affordable kind of life insurance.
● Endowment plans
Endowment plans or savings plans combine the dual advantage of savings and insurance under one policy, thus making it easier to meet your life goals.
● Unit Linked Insurance Plans (ULIPs)
ULIPs help you enjoy the dual benefits of insurance and market-linked investments. You can invest in equity funds, debt funds or a mix of both to create wealth over the long term.
● Whole life insurance
If you want to ensure that your life cover lasts throughout your life, whole life insurance plans can help you out. The cover they offer generally lasts till you attain the age of 99 or 100.
Even if you are single now, the benefits of life insurance are many and varied, and you can always enjoy the advantage that a life insurance plan offers. Do keep in mind that if you buy a life insurance cover when you are single, you need to account for all your future goals too. And that may include having your own family later in life. So, if that is one of your goals, make sure that your life insurance policy is enough to cover those financial needs too.
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