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Insurance Basics

4 reasons you need insurance even if you don’t have dependents

18 March 2016
Insurance isn’t something meant only for families or middle aged individuals, it’s equally important for the young, the old, the unmarried and absolutely anybody else who earns an income- even if nobody is depending on it!
 

A dependent is someone who needs another person’s financial support. This can be a child who is a minor, your aging parents or even your spouse. Insurance is the best way to ensure that even in your absence, your dependents never struggle through any sort of financial difficulties.

But what if you don’t have dependents? Do you still need it?

The answer is a resounding yes, because insurance helps you save money, by reducing the amount you need to pay out of your own pocket.

Let’s look at 4 reasons you need insurance even if you don’t have any dependents:

  1. To prepare for change and take advantage of cheaper premiums

You might be single and unmarried right now, but what if sometime in the future, you decide to get married, or have kids? What will happen when your parents retire?

If things do change, you’re going to need to buy insurance, but if you wait too long, the premium will rise to a point where it may become unaffordable, especially because you have nobody’s income to depend on but your own. This is why it’s essential to get insurance when you are as young as possible.

Related: Top 6 factors that affect how Life Insurance premium is calculated

  1. Critical illnesses can be devastating both emotionally and financially

If you contract a major illness like cancer, heart disease, etc., the financial strain caused can be unimaginable. It costs an average Rs. 10 lakhs for Cancer treatment, Rs 18-20,000 a month for peritoneal dialysis for Kidney diseases, and around Rs. 20 lakhs for a lung transplant. Such expenses can burn a hole in your pocket and thus, it’s essential you have someone to fall back on, such as your insurer. Here’s your guide to picking the right plan to insure you against critical illnesses.

  1. You can avail tax benefits

Most types of insurance, such as life, health, critical illness, etc., offer tax savings under Section 80 (C), 80 (D) and 10(10)D of the Income Tax Act. These provisions allow that the amount you pay as premium and receive as maturity benefits, can be deducted up to a pre-defined limit from your taxable income. Plus, it’s time to submit investment proofs, so here is how insurance helps you save tax and your guide to submitted investment proofs to avail tax deductions.

  1. You have a lot of assets that need protection

A car, a home, a trip abroad- every one of these- and more- are prone to risks of damage and destruction on a daily basis. You need to get yourself insurance because if you do not, the cost for repairing each of these will have to be borne entirely by you, a situation which can derail your entire future. Thus, here are your guides to Home Insurance, Motor Insurance and Travel Insurance.

Thus, as we can see above, insurance is all about paying a nominal amount as premium, in return for an on-demand amount that is exponentially more than what you pay, and can protect you from the financial consequences of damage and destruction to your most prized assets.

 
 
 
 

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