Why Every Parent Must Buy Term Insurance?

Even children can buy term plans to secure the livelihood of their parents. Remember your parents did not have access to the kind of financial planning services you can avail now, even if they saved dearly for their post retirement life, urban inflation may take a toll on their corpus and leave them dependent on the children. You can protect their future with a term plan.

You know your family is financially dependent on you and it will become difficult for them to manage in your absence. A term plan provides financial security for the unfortunate demise of the insured. There are no regular payouts in the plan, at the time of the demise of the insured; the insurance company pays the amount to the beneficiary. Term plan covers the risk of death and provides financial security to the family of the insured.

Listed below are some of the reasons why you should purchase term insurance plans for your parents.

Importance of Term Insurance Plans For Parents

Following are some key benefits offered by term insurance plans for your parents -

1. Financial Protection

By investing in term plan insurance, you secure the future of your loved ones. The term plan will give financial security to your parents, and later to your spouse and kids. It will provide financial assistance when you are no longer around. Your parents and your spouse and kids will be able to continue with their life without falling into a debt trap. A term plan is an investment you make today to secure the financial future of your loved ones in your absence.

Must Read: Why PPF Is A Good Investment In 2021?

2. Monthly Income

The term insurance plan offers a monthly income for a specific period. In addition to the lump sum payout, the insurance plan provides a monthly income which will help cover the monthly expenses. The monthly income will allow your family to maintain their lifestyle.

3. Tax Benefits

The premium paid on term insurance gets an exemption from tax under section 80C. The maximum amount of exemption is Rs. 1.50 Lakh. Further, the tax benefit received by the policyholder’s nominee is also tax-free.

4. Additional Benefits You Can Avail with Term Plan

There are some riders you can opt for. With increasing lifestyle diseases, it has become essential to invest into riders like disability coverage, cancer protection and accident coverage. These riders are in addition to the term plan and will provide a cover in case of a critical medical illness or an unfortunate event.

Concluding

Therefore, buy a good term plan today and give your beloved parents a secured future in an extremely economic and convenient manner. This article will help you with the reasons that you should keep in mind while purchasing a term insurance. This will help you to purchase a term plan that matches your needs and requirements in your budget.

Also Read: Should I Go For FD Or SIP?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.