Do I Need Term Insurance if I Don't Have Dependents?
Updated On Aug 15, 2021
A term insurance plan is a type of life insurance plan that provides coverage for a specific time period. The main purpose of purchasing a term insurance plan is to safeguard the future of your family financially even in your absence. These plans do not provide any kind of maturity benefit. The main question that arises here is that even if you do not have any dependents, do you still require a term insurance plan? Let us understand it with the help of some situations whether you actually need a term insurance plan in case you are not having any dependents.
Future is Uncertain
It is possible that you may not be having any dependents at this moment. However, at some point in the future, you may wish to get married or even plan on starting a family. Besides, you are also having parents who will get old gradually. Thus, it is your responsibility to meet the needs and ensure protection financially in the best possible manner. Life is uncertain and in your absence, it would get difficult for your parents to live a decent life financially in their old age due to lack of a regular source of income. Thus, you must insure yourself under a term plan and should also consider buying it early. This is because the earlier you purchase the plan, the lower would be the premium amount.
A policyholder is eligible to receive tax deduction on the payable premium amount up to a maximum of Rs 1.5 Lakh each year as per section 80C of the Income Tax Act. Moreover, the death benefit received is also tax free as per section 10(10D) of the Income Tax Act.
Helps in Meeting Liabilities
Let us suppose that you do not ever intend to get married yet, you still have parents to take care of. Have you ever thought of the possibility of what your parents would have to go through in case you have liabilities to meet such as home loan, car loan, etc. You definitely wouldn’t want your parents to be struggling with the same when you are not around anymore. Moreover, you would also not like to lose on your assets in order to pay for your liabilities. You can tackle this situation by getting yourself insured under a term insurance plan and your parents would also not require you to undergo any kind of mental stress.
At the End
Generally, individuals believe that a term insurance plan is not something that is worth investing their hard earned money on, and treat it just like other expenses. The financial consequences that an individual has to face in the absence of sufficient insurance cover are serious. Irrespective of whether you are having dependents or not, spare some moment from your busy life and consider purchasing a term insurance plan online. A term insurance policy is something that offers protection against life risks and is not just another expense. This insurance plan would come handy during every significant milestone of their life.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.