Unmarried Individuals and Working Couples May Still Need Life Insurance

Jun 27, 2018 | 1 year ago | Read Time: 3 minutes | By iKnowledge Team

If you are married and have children, you are probably well aware of the need for life insurance to financially secure your family. But how can life insurance fit in for single individuals and working couples with no children? Almost every financial expert recommends life insurance at the beginning of a financial plan. Circumstances may vary but the necessity of getting a risk cover cannot be ignored. Furthermore, you may be single now, but there are prospects of having a family or dependents in the future. A life insurance is vital for their financial protection as well.

Here’s why one’s marital status should not determine need for life insurance:

  • You have dependent parents

If you have parents or siblings who financially depend on you, make life insurance a priority. As the sole breadwinner of your family, you would not want them to face hard times if something was to happen to you. An optimal insurance policy will ensure that your family gets enough money to fulfill their basic requirements and maintain their lifestyle in your absence.

  • You may want to start a family

You may not have children now, but you may want to start a family sometime in the future. In this case, buying life insurance now could be a good option. Investing in life insurance as a single, young individual is more affordable than waiting to buy it when you are older since premiums tend to increase as you age. So, consider buying a policy when it is affordable. Perhaps the coverage you have now is sufficient, but with children in the future, you may want to look at increasing the amount of coverage on your existing policy.

  • You may be prone to health issues

Are you at risk of health conditions? If there is a history of specific health conditions in your family, you may want to consider life insurance while you are young. One of the reasons why financial experts recommend life insurance while young is affordability of premiums. If you wait to buy insurance until you start showing symptoms, you would have to shell out more.

  • You may want to clear debt

Buying an insurance policy befitting your needs can help you in covering your liabilities. Perhaps you have a home loan that has to be repaid in 10 years. Here, you may want to consider a term insurance with a similar maturity period. Therefore, when your term insurance policy matures, you can use the sum assured to repay your home loan. You don’t need to worry about having the resources when it’s time to repay the loan as it is taken care of by your term insurance policy. This makes insurance an attractive investment for singles having outstanding debt.

  • You want to reduce your taxable income

Are you looking to save taxes and maximize your income? A Life insurance policy can help you there. Under section 80C of The Income Tax Act, 1961, you can claim a maximum deduction of Rs. 1.5 lakh paid towards insurance premium thereby reducing your tax outgo.

Your spouse is financially independent. Do you still need life insurance?

Yes. If you and your partner are financially independent, it is a good idea to be adequately insured. If both spouses contribute towards household expenses and one’s income stops, it could negatively affect the financial situation. For instance, in case of a partner’s untimely demise, the entire financial burden could fall on the other spouse. However, with the payout from the deceased spouse’s insurance policy, the burden could get lessened to a great extent.

The way forward

To determine how much life insurance you need, financial planners usually recommend two strategies:

List your expenses you want covered in the event of your death like education expenses for children, outstanding loans to be cleared, etc., and get an insurance worth that amount.

Get an insurance cover worth your annual income for 10 years.

To determine the appropriate amount, take the help from online insurance calculators or consult a qualified professional.


A low-cost, high cover term insurance plan can provide adequate cover to meet the needs of unmarried individuals and working couples.

Advt. no.: IA/Jun 2018/4147

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