Life insurance is something often associated with married people with a family, but there is no right stage in life for choosing the path to better financial management.
Hence, it is a clear indication of the fact there is no reason for single people not to avail themselves of the benefits of term insurance. Most importantly, just because you are single does not mean that you don’t have any financial dependents. Let us start with the benefits that come with term insurance and move on to why even single people may need such policies to ensure a stable life.
What Is Term Insurance?
Term insurance is one of the simplest types of life insurance that provides financial coverage and protection to an individual and his family or those dependent on the insured person financially for a specified period of time. This specific period of time is called “term”, hence the name term insurance.
If the one who is insured passes during this term, the financial dependents or the nominees will be paid a death benefit in that case. There are numerous kinds of term insurance policies, with those having terms of 10, 20, or 30 years. Premium is the amount of money charged by the companies providing the insurance to the policyholders for the benefits and coverage that come along with the term insurance policy. This sum is typically charged monthly. In the initial stages, term insurance is less expensive than permanent life insurance, which covers the whole life of the policyholder. It provides a considerable sum of money as coverage for relatively low premium rates.
Reasons For Singles To Get Term Insurance
Better premium rates and coverage:
With the minimum eligibility age to purchase term insurance policies as 18, one can avail of its benefits pretty early on in life when most are still single. When you buy a term plan early in life, insurance companies provide better and much lower premium rates than what they provide as your age increases.
Not only this, but insurance companies also offer higher coverage for diseases when they are purchased by policyholders preferably below the age of 30. This is because such people are less prone to be already suffering from diseases. Also, you might choose to get married later, but then your life insurance premium would rise. So, the earlier you opt for a term plan, the better.
Paying off debts such as student loans:
One of the most important reasons singles need to purchase term insurance is that in spite of not having a spouse or children, they might have ageing parents, siblings, or maybe even some family member who might be financially dependent on them. If some mishaps were to take place with the policyholder, like an untimely death, term insurance could always come in handy in providing financial security to these people. Young single people also often need to pay off their student loans after completion of their formal education. Unfortunately, if something untoward were to happen to them, the burden of paying off a co-signed debt would fall on the grieving parents, and most people wouldn’t want that. So, it’s a good decision to avail of term insurance so that after the passing of a policyholder, the cover can help the family members take care of debts smoothly.
If you are a single parent:
All parents want to watch their children grow and have a good future. This involves expenditure on their education and different other aspects. If something were to happen to the single parent for whom they couldn’t stay around or be physically present anymore as their child grows up, term insurance will help cover and pay for the child’s basic necessities and also his or her education. They will be financially secure, and any sort of unfortunate event will not be a hindrance to all their future endeavours.
Hence, you can clearly see why even single people must consider buying term insurance. It is a wise decision on the whole and helps keep the people close to you financially secure and live a life free of worries. Single or not, life is unpredictable, and term insurance is nothing more than the right decision toward better financial management. With term insurance, when the time comes, you can be prepared for whatever life throws at you.