A life insurance is predominantly for your family & loved ones & not for yourself, so the question is do we really need a life cover if we don’t have any dependants to leave any money behind for?
Well, the answer is YES. There’re many different products available in the market with each being suitable for a certain type of customer depending upon his or her personal circumstances. For e.g. someone with no dependants or no mortgage would still need some form of cover to protect his or her personal interest.
There’re 2 types of covers suited to this situation:
- Critical Illness cover
- Income Protection
Critical Illness Cover: A critical illness cover pays out a lump sum upon diagnosis of a serious/ critical illness. Although this is a comprehensive life insurance suitable for working individuals with families to look after, this type of cover is also suitable for individuals with no dependants or liabilities just to ensure they’re able to carry on living the same lifestyle till the time they’re off work due to an illness. If tomorrow you’re not able to continue working due to an illness & it could take perhaps a year or two for you to get back to work, you’ll at least have something to fall back upon. It’s most suited to people who’re self-employed for there’d be no sick pay that they could rely on, & that’s one of the reasons why majority of people tend to cover themselves for about a year or two years’ worth of salary. The money obviously can also be used in case you were to contract a disease & you decided to go for private treatment.
Income Protection: Income Protection on the other hand pays out a part of your salary month on month (depending upon your plan) in the event that you were not able to work due to an illness or even an accident making it THE most comprehensive policy in the market. This cover is by far the most important cover to consider as long as your budget allows & inasmuch as it’s suitable for individuals with families, it’s equally important for single individuals with no dependants. The best part about an income protection policy is that it pays out a monthly income to you regardless of how severe your condition is, so long as you’re medically unfit to work.
So if you’re single, have no dependants & you think you don’t need any form of cover, think again because life insurance isn’t always for your loved ones, your life is equally precious.