Does being single mean that a person has no responsibilities and no need for life insurance? No, this is not true, as even single people have people (parents, cousins, or anyone else) whom they care about and are responsible for. Also, life insurance is not only about securing the financial future of your loved ones but also about building a corpus through disciplined investing to fulfil one’s long-term goals.
Read on to know how life insurance plans are useful for everyone.
Life Insurance is For Everyone!
To understand why life insurance is suitable for people of all ages we need to know what life insurance is. Life insurance is a tool to secure the financial future of one’s loved ones, which includes the wife and children, along with parents and any other dependents. So, even if a person is not married, he or she may be responsible for elderly parents or siblings or anyone else.
Life insurance policies are useful for people of all ages in different ways. While one person may buy it to ensure the financial stability of loved ones, another may take it to ensure the easy and timely paying off of the liabilities. Similarly, some people buy life insurance plans to fulfil their long-term goals like buying a home or planning for retirement. Also, if a person is single today, does not guarantee that the status will remain the same in the years to come.
How Can Singles Benefit from Life Insurance?
Start Early– Singles have an edge over married people (in the sense that their expenses are less, and they can save much more). A portion of these savings can be used to buy life insurance plans, whose maturity benefits can be used to fund bigger purchases at a later stage when responsibilities increase and there is a fund-crunch. As people age, several additional expenses, including expenses on healthcare and medicine increase, while the earning capacity goes down. This is the time when life insurance funds come in handy.
Another advantage of buying life insurance at an early age when one is healthy is that the premium amount is much lesser than when one buys a policy at a later stage. A life insurance premium calculator can be used to check the amount of premium for a specific amount and period for people of different ages.
Take Care of Loved Ones– Buying life insurance can help a person take care of their loved ones- parents, siblings, or a family member with special needs and greater medical support. Investing in a life insurance plan helps in ensuring that their loved ones do not have to suffer for lack of funds when the policyholder is not there. A person can choose a policy amount that takes care of the expected increase in medical and other costs and decides the premium amount accordingly.
Fulfil Financial Goals– Every person dreams of owning a big house or going on a foreign trip or saving for retirement. All such goals can be fulfilled if a person has adequate funds, and the best way to ensure that is by saving and investing in instruments like life insurance policies with maturity benefits. One can time the end of a policy to match with one’s financial goals, like repaying student loans or retirement planning or buying a house.
One May Have a Family at a Later Stage– A person may not remain single always and can find a partner in the future and get married and also have children. All this means that a person will need to have adequate money to take care of the needs of his family. Starting early when one is single provides a head start and ensures that one can easily meet the financial goals without overworking.
Disciplined Investing– A very important benefit of life insurance policies is the requirement of paying premiums regularly. This inculcates discipline in the way a person spends and saves to ensure continuity and regularity in the payment of premiums.
In addition to these benefits, investment in life insurance policies can also help a person fund any other expense or cause, like helping the poor children or funding an old age home or any other noble cause. The fund received from a life insurance policy can also be used to pursue expensive hobbies that would not have been possible otherwise.
To conclude, saying that a life insurance plan is not for singles is not at all correct. Investment in life insurance policies can be used by people of all ages and statuses to fund varied expenses, fulfil goals, and even help others.