The Importance of Life Insurance in Case of No Dependants
Life Insurances 195 views
35 year old Amit has no marriage plans and not even he wants to adopt a child. Moreover, few years ago, he lost his parents, and to be very honest has no dependant left. He is working in a leading MNC, and wants to earn for another 10 years, and then he wants to take the retirement. Well, for him, life is just perfect and going smooth and he does not want anything else. He wants to go on a world tour, and wishes to explore the various beautiful destinations around the world.
Well, as far as investment is concerned, Amit has a few investments in property, PPF, FD and mutual funds. Not only this, in fact he also purchased one life insurance policy during his younger days, and raring to go at his profession. More to the point, all his savings are majorly for his retirement lifestyle,and possibly help him to setup a business in the future. However, he feels that the insurance policy that he had for long it is of no use as he has no dependant who can take the benefit from that policy.
Well, it is not only the case with Amit, in fact many single men and women in the country are in the same shoes. Yes, because they think that there is no one who can enjoy the sum assured after their demise, this is the reason that life insurance policies don't attract them.
When it comes to life insurance policies, people usually buy it in order to secure the future of their families after their unfortunate demise. Whereas, for singles with no dependants have no strings attached, hence they think that these insurance policies are of no use, and have nothing to do with them.
However, after knowing the case of Amit, why he does not want a life insurance policy, let's discuss some resounding reasons why he should opt for an insurance policy.
The Advantage of Cheaper Premiums
Amit has done a great job of buying a life insurance policy when he was young. Yes, because this thing has helped him to take an advantage of paying the cheaper premiums since he was not married neither had the children. Just like Amit, taking the life insurance policy at an early stage of life can help you reap many benefits. Premiums rates are quite affordable because there is not much expense on your shoulders when you are young. Moreover, with no ones income to depend on, and your earnings are for you only, thus you can make the most of this situation.
It would not be wrong to say that singles can also fall sick or can be disabled permanently or temporary. Thus, during such time being financially self reliant is really very important. However, some major critical illness like heart diseases and cancer cause a huge impact on your finances. Yes, the average hospitalization cost for these major illness can shoot over 10 lakh. Not only this, in fact you have to continue with medication for few years or maybe lifelong which is highly expensive. Thus, these things can create a hole in your pocket and can hurt you financially bad. Thus, here a life insurance policy with adequate riders can help you to protect with critical illness, and disability expenses. Thus, it is a wise decision for even singles to have.
To understand this thing, let's take the example of Amit again. This gentleman invested in a life insurance policy during his early years, well most probably to avail the tax benefits. However, for all these years, all his premiums attracted the tax benefits, and in fact will continue to do so. When it comes to life insurance, it provides you with the tax benefits as per the Income Tax Act of India. In fact, the maturity that you get from your policy is also tax deductible unto a predefined amount. Thus, going for a life insurance policy is surely a wise tax saving investment, and helps in building the habit of saving the money when you are in urgent need.
Assets and Self Protection
Amit has future plans, wherein he wants to explore the world, he even owns a property as well as an investment. Here, buying a life insurance policy against his home, travel plans and even car makes pretty much sense. Yes, because these assets are prone to damage due to theft or because of natural calamity. Thus, an insurance policy can protect these assets, and in case if there is any damage to these assets, the expenses will not be completely borne by Amit. In fact, his travel insurance also helps him in the future.
However, although Amit has no plans to marry in the future, but there is no surety of it as life has its own twist & turns, and in fact old age demands company. He could even plan to adopt a child, thus in such a scenario, the child will be his dependant, and an insurance policy can perfectly ensure the education of the child is well looked after the demise of Amit.
Well, these all are hypothetical situations for those who have no dependants and could face such situations in the future. Thus, with the help of having a life insurance policy people like Amit will remain financially secured, and there will be no calamities that will uproot them.