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Why term plan is important for every parent?

  7/11/23 12:03 PM

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A term insurance plan is the simple form of financial protection that can help your family meet its financial needs in your absence. Term plan gives peace of mind with cost-effective premiums and a life cover that you can choose depending on your family’s lifestyle and financial needs. Term plans can be brought online conveniently by just completing a few steps & without any lengthy paperwork.

Some of the key benefits of term insurance plans are:

Term Insurance Plan provides a large amount of life cover at cost-effective prices. It also helps to protect your loved ones from any unforeseen eventuality. Term Insurance Plan can cover your financial liabilities and offer tax benefits on premiums paid and the payout received and helps in critical illness.

Why term plans are a must for parents?

As couples graduate from being ‘wife and husband’ to the more important role of ‘mother and father’, their financial responsibilities grow. This is because bringing up children includes expenditures like his/her education, lifestyle, and marriage, which require vast sums of money. Purchasing a term insurance will ensure that your child goals are met even if the breadwinner meets with an untimely demise.

Term plans are the cheapest form of life insurance that provides death benefits to the beneficiaries of the insured person for a defined period of time. So in the event of any unexpected situation like one or both parent’s death, the policyholder’s family is taken care of and financial stability is ensured because of term insurance. If both parents are income earners, they can both buy term insurance policies to create a wider corpus for their child/children. In India, a vast majority of parents almost 86% fund their child’s education. A term policy can actually help you fulfill this responsibility even in your absence.

Easy payment terms

Term insurance policies give options for premium payment and payout options. You can opt for a one-time premium, limited pay premium payment option or an annual payment mode. Also, the death benefit i.e. the payout can be received by your nominee in a lump sum, monthly installment or a combination of both.

 

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.

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