It is common knowledge that life assurance has always been viewed as a coverage designed for those who are married.
You would be right in that thought pattern.
Indeed, this is true for married people with dependents like a wife and children. Proceeds from a life assurance claim is a great buffer for the family after the loss of the life assured.
The next of kin of a person who has a life assurance policy feels the impact of the loss of income when death occurs.
So where does this leave unmarried and single people when it comes to life assurance?
The following three (3) reasons qualify unmarried and single people for life assurance coverage:
Tax Rebate Benefits
As an unmarried person, you can enjoy some savings against tax. You can do this by having a life assurance in place. This benefit is backed up by law (Personal Income Tax Law and Pension Reform Act 2004).
This is possible in the eyes of the government because the proceeds from your life assurance will go towards keeping loved ones destitute and off the streets thereby taking a burden of social intervention off the government’s neck.
Disciplined Savings Using a Life Assurance Policy
There are life assurance policies that can help a single and/or unmarried person accumulated cash over a period of time.
Insurance is first a contract of interest where you pay an insurer to bear your risk of loss which further means that the terms of the contract become binding on you.
Some of these terms may include a termination charge in case you want to end the life assurance policy before the scheduled time.
Using a Life Assurance Policy As Collateral for a Loan
Banks extend credit facility to people very often but they do it with a sense of security.
This is the reason they ask for collateral which is most times ten times the value of the loan facility you applied for.
Apart from this arrangement, banks usually insist on a life assurance cover to the tune of the value of loan while sometimes they accept it as an additional guarantee to approve your loan application.
As an unmarried or single person, you should have a life assurance coverage.
Do you have any questions about life assurance? You can ask in the comments.