I Am Unmarried, Should I Buy A Term Insurance?

Although someone’s untimely departure leaves a void that can't be filled, a term insurance plan is a solution that youngsters should not ignore. If as a youngster, you think that you don't need insurance, think again. Time flies and soon you may get married and start having a family. An untimely death can leave many dreams, goals and aspirations shattered.

Term insurance is a must-have for all those who have financial dependents. If you are young and unmarried, you could have parents who are financially dependent on you. Also, if you are considering getting married soon, you need a cover to provide financial protection to your spouse. A term insurance plan is a tool to help the surviving family members maintain the same standard of living. In a way, it ensures that there is a replacement of income even if the bread earner is not there to support.

Buying Term Insurance Before Marriage

Based on one's age, amount of cover (sum assured) and the period for which insurance is required – the premium is calculated. The person insured has to keep paying the premium till the end of the chosen term. In case of death during the term, the insurance company pays the sum assured to the family. Effectively, a term insurance plan is the purest form of insurance as it has no maturity value but provides pure protection. The premium to sum assured ratio, therefore, is high in them – a high life cover can be had at a fraction of the cost in terms of premium.

If not today, sometime in the near future you could be on your way to save for your goals and create wealth. On buying a term insurance plan, you ensure that the possibility of your long-term goals getting derailed is minimized. The younger the person, the lower is the premium compared to those who are not-so-young or middle-aged. Also, the premiums remain the same during the course of the policy term. Further, as one ages, there could be health complications in life, thus hindering buying high cover plans and may be subject to stricter medicals.

You could be saving towards your goals through various investment options, but in case of death, the funding stops. Here comes the role of a term insurance plan. The death proceeds can be used by your spouse to not only meet the immediate financial needs but also to keep the long-term goals on track.

Conclusion

Therefore, just like starting to invest early has its advantages, buying a term insurance plan early in life helps. It helps in inculcating a habit of following a financial plan to take care of your savings and protection risks. And finally, keep reviewing your coverage needs after marriage, make your spouse the nominee and with an eye on your goals, enjoy life without worries.

You may also like to read:-

• How is Term Insurance Different From Endowment and Money Back Plans?
• How Can You Get Cheap Premiums?

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.