Should I Purchase Term Insurance Even If I Don't Have Any Dependents?

Term insurance is designed to provide a legacy to your dependents when you die. But what if you don't have any children or other dependents? Is it still necessary to have insurance in your portfolio? Let's dive into the article to know the answer. 

Should I Purchase Term Insurance Even If I Don't Have Any Dependents?

The answer to the question is yes. So, let's see some of the conditions to support the argument. 

• Future Goals

Currently, you might not have any dependents, but you may choose to marry and have children in the future, and your parents will grow older as well. So, you will have to financially protect them in the event of your untimely death. Thus, purchasing a term insurance plan can be postponed but not avoided. Moreover, if you wait too long, you will end up paying more for your insurance due to the increased health risk involved. Hence, in this scenario, you must buy a suitable plan as soon as possible to get high coverage at affordable premium prices.

• Debt/Loan Repayment

You would not want to leave the mess of your home loan, student loan or personal loan repayment obligations for someone else to clean up after your death. Moreover, you also would not want to forfeit the assets' proceeds to repay the loan. In such a scenario, you can consider term insurance which is relatively inexpensive to obtain and can cover your loan and debt instalments and liabilities after your death. 

• Tax Benefits 

The tax benefits offered under the Income Tax Act can help you save your hard-earned income. For instance, you can get tax deductions on the premium amount of your term insurance plan under Section 80C of the Act and save up to Rs. 1.5 Lakhs in a year. Moreover, you can get tax exemptions on the death benefits provided to your nominee after your death under Section 10(10D) of the Act. 

• Disability or Critical Illness

Aside from providing life insurance, insurance policies also include features such as a critical illness cover, accident cover, partial or permanent disability cover etc. These provisions offer financial support in such adverse times by helping pay off the substantial medical expenses and hospitalization bills. This will ensure that your emotionally distressed family would not have to suffer from a financial crisis due to huge treatment costs.

Take Away

The arguments mentioned above highlight the need for a term insurance plan even if you do not have any dependents or children. Moreover, it is advised to purchase an appropriate plan after carefully assessing your needs and requirements and future personal and professional goals and aspirations since the uncertainties and unpredictabilities can derail your life in a second. So, it is best to be prepared for any challenge life throws at you. 

Also read 

Can Senior Citizens Buy Term Insurance?

Right Age to Buy Term Insurance Plans

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.