Term life insurance, as we know it, has tons of benefits for almost everyone, including both families and single individuals. Often, there are wrongful misconceptions and perceptions relating to how it is not that important for those who are single or living alone. Many people thus skip the product altogether, thinking that it would better suit those who are married. However, there are several benefits that term life insurance offers for even single individuals.
How Does Term Life Insurance Benefit Those Who Are Single?
If you’re single, you still need term life insurance for future estate planning, securing the financial futures of your parents, and other needs. Here are some benefits that you should keep in mind.
- Multiple term plans also help you cover your health. With young professionals more vulnerable today to lifestyle ailments, proper medical coverage for treatments, hospitalization, and other costs is a must. Term insurance comes with several add-ons and riders like hospital care, critical illness, terminal illness, surgical care, and others that you can use to cover future medical costs which may arise without any warning. At the same time, there are accidental disability riders that will also help.
- Term life insurance is costlier down the line. If you purchase it early at a young age, then it will help you get the highest possible coverage at possibly the lowest rates. This is because the insurer will find you to be a low-risk policyholder at a younger age. However, if you look to buy the product down the line, it will be substantially costlier and may dent your savings by a big margin in terms of the premium amounts.
- Offering financial coverage to your parents is also essential. They may have taken education loans for your bright future. However, if something happens to you, then they will not have to struggle to repay the loan, in case you have adequate term insurance coverage. At the same time, they can use the amount to meet their household costs and repay other liabilities in such unfortunate scenarios.
- You can easily upgrade and enhance your term plan to include your spouse and dependents, in case you reach that stage of life in the future. Look for a plan that offers this provision.
- There are attractive tax benefits that you can get with term plans. The premium payments will give you deductions up to Rs. 1.5 lakh under Section 80C. If you have critical illness and other health-linked riders, then you can get tax deductions under Section 80D up to Rs. 25,000.
- Enjoy total financial security and mental peace with term plans, since they give you abundant financial coverage. You can leave behind an estate to your parents or loved ones in case something happens to you. This is reason enough to purchase a term insurance policy.
Thus, even if you are a single individual, keep these benefits in mind and obtain your term plan right away without any further delays.
