How to Buy Term Insurance For A Parent?

Why should Parents Buy Term Plans?

11 Sep 2020
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Starting a family is a huge responsibility. You now have to consider yours and your family’s life aspirations when setting future financial goals.  As parents, it becomes your responsibility to secure the future of your child. It may be in terms of ensuring that they get a good education, have their dream wedding, or are financially secure until they settle down. If you are lucky enough, you may be a part of this journey with them.  However, life is uncertain, and there is nothing that you can do to avoid unfortunate events. But you can certainly keep your children's financial future secure if anything were to happen to you. And a term insurance plan helps you do just that.

Why is it Important as Parents to Buy a Term Plan?

Having a child changes a lot of things in life. You two are no longer just a couple but are parents too. Nowadays, most people tend to have the future of their children chalked out even before they are born.

A few things that people plan are the child’s schooling, college, gifts when they turn legal, higher education, marriage, etc. Like any responsible parents, you would want what’s best for your child. And any financial interruption in accomplishing it can be a bummer.

When a child is on its way, people tend to manage their finances accordingly to adjust the new addition in the family. While investing in different strategies plays out well, it is also necessary to make sure that your children are financially secure after your death.

Hence, a term insurance plan is the best life insurance product for parents. Keep reading to know why.

Know What a Term Insurance Plan is

As explained earlier, life uncertainties arise at any time. They can leave your family emotionally, as well as financially distressed. Imagine what happens if you are the sole earner in the family? To make sure your family does not suffer, at least financially, after your death, buying a term plan is a wise decision.

Term insurance provides a lump sum benefit to your family members in the event of your untimely death during the policy tenure. The amount received can be used by your spouse and children to accomplish their life aspirations without any financial interruptions.

Let us help you understand how term insurance helps protect your child’s dream.

How Can You Protect Your Child’s Dream with Term Insurance?

Below are some of the benefits of term insurance that will help you (the parents) make an informed decision -

  • Since you, as a parent, will be dedicatedly investing towards term insurance every year, you can continue to live peacefully as your child’s financial future is secured.
  • Term insurance is the most affordable life insurance product available in the market. You can get a high sum assured at a nominal premium price.
  • You can extend the scope of your term insurance plans with rider benefits such as critical illness cover, accidental death benefit, waiver of premium cover, etc.
  • Apart from protecting your child’s future, term insurance also offers tax benefits. You can read more on term insurance tax benefits at Finserv MARKETS online.

Joint Term Insurance For Parents

Most insurers in India offer joint term insurance plans to married couples. As parents, you can certainly opt to buy the policy. It is ideal to buy this plan when one of the parents has a full-time job. That way, if anything were to happen to the sole earner in the family, the spouse and the children will receive the death benefit under the policy.

However, each parent can opt for individual term insurance plans as well. That way, if anything were to happen to both the parents, the children will receive benefits from two term insurance plans. You can consider buying Bajaj Allianz Smart Protect Goal Term Insurance at Finserv MARKETS and secure yours and your family’s financial future at an affordable premium rate.

How to Buy Term Insurance

At this point, you must be wondering how you can find the best term insurance plan for parents. Well, it is simple. Before you go out on the pursuit to buy a term plan, ask yourself the following questions -

  • How long do you think your children will be financially dependent on you?
  •  How much coverage do you think is sufficient?
  • At what age do you plan to retire?
  • Is your spouse working? If yes, how long do you think they plan to continue with their job?
  • Do you think joint term insurance will be sufficient for you?
  • How much is your family’s current income?
  • What are your current expenses?
  • Do you have any liabilities?

Having answers to these questions will help you narrow down on your future financial needs. Based on it, you can then buy a term insurance plan that is affordable and suits your needs. You can also use the term insurance calculator to determine the premiums charged on your chosen coverage and rider benefits.

Conclusion

The primary purpose of buying term insurance is to secure the financial future of the loved ones, and protecting your child’s future is a top-most priority for any parent. In case you are looking for a trustworthy insurer, consider buying term insurance plans at Finserv MARKETS. It offers you ideal term plans at affordable premium rates, hassle-free claim settlements, extensive rider benefits, a high coverage, and more.

So, don't wait. Protect your child’s future by opting for term insurance plans at Finserv MARKETS today!