Most Indians assume they cannot do without life insurance. An Insurance policy is one of the first ‘investment’ that young Indians are encouraged to buy, on securing a job.

Life insurance won’t improve someone on your death. Its primary purpose is to make up for the loss of your income due to your untimely death. So, there are many types of people who don’t need to buy life insurance. Here are the main ones.

No income:

Are you a student, a college pass-out preparing for competitive exams or a person who’s quit her job to pursue personal interests? Then you have no need for a life insurance policy. A life insurance cover supports you temporarily.
Strangely enough, quite a few insurance products (usually traditional plans) in India come with in-built insurance covers on the lives of children and other young dependants. These are completely avoidable.

No dependants

When thinking of life insurance policies as an investment, most folks forget that the pay-out from the policy will not come to them but to their chosen beneficiaries. If you have no dependants whom you need to support, you don’t need a life insurance policy either.
Young folks who have just signed up for their first job may not need life insurance at all, as long as they are single and their parents and family members do not rely on them for financial support. Folks who are married and don’t have children may not need life insurance if their partners earn and are self-sufficient with enough income to live comfortably after their passing.


If you’ve bid goodbye to a successful career and are currently enjoying a comfortable retired life with your retirement benefits, you do not need an insurance policy. Most insurers in fact do not offer term covers for folks beyond 60 years of age.

Comfortable net worth

Those who have large enough net worth to live off their investment income also don’t need life insurance.


In India, there’s no estate duty yet. Therefore, having a Will and nominations in place ensures that dependants of HNIs get to enjoy their investments and the passive income flow from it, after their passing.


Ashutosh Gupta

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