3 Situations where you might need term insurance, even if you're single
A lot of people believe that term insurance is only for married people. They think that with marriage comes a lot of financial responsibilities - and hence, purchasing term insurance becomes a must. This, however, is not entirely right. You can be very much single and still need to invest in term insurance - especially if there’s a likelihood of financial disruption for your family in your absence.
In this article, we talk about three scenarios where singles must consider purchasing a term insurance policy.
So, let’s dive right in.
3 situations where you must consider buying term insurance, even if you're single
1. You have dependent parents or siblings
Financial dependents don’t necessarily mean just your spouse or kids. If you're the sole earning member in your family and have parents who are going to retire soon or younger siblings who depend on your income for their lifestyle and expenses, then you should buy a term insurance policy.
If you were to die today, just imagine the financial hardships your parents or your siblings would have to go through. They will have to take care of all the expenses while coping with your loss. Most probably - your parents, who have just retired, or your sibling - who might still be in college, will be forced to take up a job so that they can manage the expenses.
However, all these problems will be taken care of, if you invest in a term insurance policy. They will have proper financial security and won’t have to compromise on their standard of living in your absence.
2. You have taken a large loan
When you die, your debt won’t die with you. Therefore, if you have taken a large loan, the burden of which would fall on your loved ones if you pass away, you must consider buying a term plan. While most home loans strongly come with the recommendation that the expense be covered by a term plan, this is not mandatory.
So, it becomes your responsibility to buy a plan that can protect your family from the burden of this cost, should something happen to you! You can simply purchase a cover that is equivalent to the loan amount you’ve taken and insulate your family from this debt if you pass away before paying off the loan amount.
3. You are a single/ adoptive parent
With single parenthood come a lot of responsibilities and duties. One of the responsibilities is to help your child achieve their dreams. Dreams like getting an education from the world’s best university, or receiving training from a renowned institution to become a cricketer. And, when you don’t have a partner to share these expenses with - it becomes your sole responsibility to fulfill every single one of your child’s dreams, both in the short and the long term.
Hence, you must be prepared. You can invest in a term insurance policy if you don’t want your child to compromise on their dreams. In your absence, term insurance will provide your child with the financial resources to get training in that renowned institute or pick the university they want to study at - without any compromise.
You can be very much single and still need a term plan. You can buy it to cover a large loan or protect your parents or younger siblings who depend on your income for their living. And if you’re a single, adoptive parent, you can buy it to ensure your kids don’t compromise on their dreams in your absence.
So, buy a term insurance policy today and protect your loved ones! Don’t delay!
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- You must consider buying a term insurance policy if you have parents or younger siblings who depend on your income for their lifestyle and expenses.
- A term plan will also help cover a large loan that you have taken.
- If you’re a single, adoptive parent, you can buy term insurance so that your kid doesn’t have to compromise on his/her dreams in your absence.
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