Biggest excuse: I don't need life insurance

When Sohan was asked why he didn’t have a life insurance. He replied with various excuses like he is single, he finds it not very important, he can purchase it later and so on. Most of us have such excuses in our mind but we don’t actually confront them. This actually leads to procrastination which can turn out to be highly expensive in the near future.

Let’s look at some of the most common excuses;

I don’t need insurance because I’m single

Young and single is often synonymous with carefree. However, there is a very thin line between carefree and careless, and most youngsters drift towards the latter in view of the little responsibility they have. Hence, they don’t feel the need to secure themselves with an insurance policy and consider it as a safety tool only for the older generation.

If this is an excuse you are making then you need to remember that life is unpredictable for everyone whether you are young or old. In case an unfortunate event of death occurs to you then your policy will pay off all your debts like student, motor vehicle or personal loan, and will also cover sudden medical emergencies and funeral. You may be single and carefree but you need to protect your parents/guardian from such burdensome expenses.

I don’t need insurance because my company provides corporate insurance

An employer-offered life insurance policy is often seen as wholesome comprehensive protection. However, not many realize that this insurance equals only 1 – 4 times your annual salary (depending on the company) and when you leave your job, you also leave your life insurance.

The key thing to remember is that your company may provide you with an insurance amount that won’t be sufficient for your family’s financial security. After keeping in mind inflation and all liabilities you may need an insurance cover which is at least 10 times more than your current annual income. So, buy your individual term insurance plan that will serve as a power booster for your corporate plan. Here, you can calculate your needs and then choose a customized plan accordingly.

I don’t need insurance because I’m a homemaker

You are not the breadwinner of the family, but you are the bread-bearer. A homemaker is not about luxuriating in the comforts of one’s home; it’s also about management which also includes finances. Home-maintenance, child-care, daily transportation and household chores are just a few things to mention, which will cost a good amount if you are no more around.

Edelweiss Tokio Life – Zindagi Plus has a better half benefit which also covers homemakers. So in the case of an unfortunate event, this plan will not only cover these unforeseen expenses but also give your partner the opportunity to take time off from work and help the family adjust to the loss.

I don’t need insurance because I’m healthy

Being healthy is actually a great blessing. However, lifestyle diseases and the growing rate of accidents are in a tremendous rise. And hence being secured with not just a vanilla term plan but also getting a critical illness cover in today’s world has become vital.

I don’t need insurance because I have a comfortable amount of savings

You may have ample of savings however it could be an investment in non-liquid commodities like real-estate and jewelry. These investments won’t serve as an asset during an immediate need. An insurance plan, thus, serves as an ideal medium for ready-cash.

If you are making one of the above excuses to avoid buying an insurance plan then rethink about it. Because you need insurance for a secured future!

Neha Panchal - Financial Content Writer

Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.