Why Is It Crucial For Parents To Have A Term Insurance Plan?

You must safeguard your family's future and your child's dream as a responsible parent. Term insurance is the finest option to satisfy your child's goals while also providing financial security for your family. You don't want to make your family feel alone or abandoned, or that they won't be able to live the life you've planned for them if you aren't there. They will be burdened with the task of making ends meet without your money, and you don't want that to happen. You can show your spouse that you've thought about making their life easier not only while you're there but also when you're not through a term insurance policy.

Why Is It Crucial for Parents to Have a Term Insurance Plan?

Below mentioned aspects can justify why parents should have a term insurance policy:

1. Peace of Mind

Uncertainties in life can strike anyone at any time. It might be a serious disease, a stroke, an accident, or any tragic event. With the help of a term insurance plan, one may provide peace of mind to their loved ones by providing high coverage at a low price against the chance of an unexpected death of the breadwinner. Furthermore, the insured gains peace of mind by arranging for his family to live in peace even when he/she is not present.

2. Child’s Future

Everyone wants to ensure their children's future, and the most risk-free way to do so is through a life insurance term plan. These term plans serve as a backup plan to ensure that your child's financial security is not jeopardised. The fact that these plans provide guaranteed security adds to their legitimacy. When a parent begins to invest in a term plan for parents, he or she understands that his or her children's future is secure in some way. 

3. Affordability

A term insurance plan has little impact on the consumer's existing lifestyle because these term plans are quite affordable. It is easier and less expensive to choose a term plan early on in parenthood. People can now easily comprehend and choose their term plans online and purchase them for their families in the digital age. Parents in India can choose from a range of term insurance plans offered by various companies. People can purchase the plan that best suits their needs.

4. Tax Benefits

You can get two types of tax benefits when you buy a term insurance policy. You can take advantage of a deduction from taxable income and an exemption from total income. The deduction for the purchase of life insurance can be up to Rs 1,50,000 under Section 80C of the Income Tax Act.  Moreover, any payment paid against a life insurance policy, including death benefits or a sum awarded as a bonus, is tax-free under Section 10(10D).

Endnotes

Parenthood comes with a lot of responsibilities, especially in terms of finances. Therefore, it is advisable for parents to purchase term life insurance as soon as they become parents. The advantages of term insurance would come to your aid and assure that your loved ones would be financially supported regardless of the uncertain future possibilities. 

Also read - Important Term Insurance Riders And Benefits Of Purchasing Them

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.