Can a non-graduate person buy term insurance?
Term life insurance plans are usually bought by people who have a family to support. A term insurance policyholder is generally found to be the primary breadwinner of the family. However, these days, it is common to find dependent young adults getting term insurance plans too. Undergraduate students, in the age bracket of 18 and 25 are eligible to get term insurance plans. Also, non-graduate people who have a steady income can buy term insurance policies in India. Read on to know more.
Categories of non-graduate people
Non-graduates in India are mainly classified into two categories:
- Undergraduate still studying -
A young adult, who is pursuing a graduate course is considered to be an undergraduate. The parents take term plans for such students because often the courses are very expensive and student loans are taken. Also, many courses, such as medicine, take a long time to get over and the person becomes a graduate at an age of 23 or 24 years. It may become more expensive to get term insurance at this stage. Keeping this in mind, the term plan is purchased earlier while the person is still an undergraduate student.
- Non-graduate but already employed -
Many non-graduate people are well-established in life. They do not have very high educational qualifications but they are successful entrepreneurs or service people. They also have families who need financial protection. Term insurance is available for those non-graduates who are economically well-off and able to afford the policy. The insurance provider doesn't ask for any educational documents when you buy term insurance. Rather, your bank statements are needed so an income is more important than a degree here.
How can a non-graduate person buy term insurance?
The process of buying term insurance is quite simple and straightforward. You can buy the plan online in just a few minutes. Before buying any plan, however, you should make a list of requirements. See how much life cover you need. Then, evaluate your budget and ensure you have a plan that is comprehensive as well as economical. And finally, do not forget to compare term insurance. Only when you compare the plans do you get to see all the options. This helps you to make an unbiased decision and also to pick the best plan at the best rate.
Advantages of buying term insurance
Whether you are a graduate or a non-graduate, you will benefit from term insurance if you have dependent family members or if you have a large loan to repay. Here are some of the best advantages you get when you buy term insurance:
Financial cover for the family -
If you are a non-graduate and the online or primary breadwinner of the family, you need term insurance. If you die unexpectedly, your family will need a source of income. Buying a term insurance plan will assure your family never faces any financial hardship after you are gone. The sum assured received from the plan can help them to continue with their lifestyle, pay all the bills and take care of all their expenses.
- Debt protection -
You may have several loans like a home loan, a vehicle loan, a business loan, etc. If you die without repaying these loans, your family will be obligated to clear the debt in your absence. This may become a daunting task for them and they may even end up losing the asset. To prevent any such situation from arising, get a good term insurance plan that will cover all your loans and mortgages. After your death, your family can easily clear the loans with the sum assured received.
- Tax benefit -
Another wonderful advantage of term insurance is that you get a tax benefit on the premium you pay towards your term life cover. Section 80 C of the Indian Income-tax act states that premium amounts up to INR 1.5 lakhs a year are eligible for an income tax rebate.
Easy and cheap life cover -
One of the biggest reasons to buy term insurance is that it is an inexpensive form of life insurance. Also, the plans are very easy to get. The term plans are available online and are conveniently available. These are valid reasons why you should get term insurance if you haven't done so already
These are some of the reasons why everyone, irrespective of their educational qualification, should get term insurance.
To wrap it up
Term insurance is a modern-day boon that everyone should take full advantage of. If you are looking to cover the financial wellness of your family, get a term life insurance policy right away. As stated, the plans are very easy to get and are affordable as well. So go ahead and get a good and suitable policy and keep all your loved ones safe and protected from all types of financial challenges.