Why is Term Insurance Plan Essential for Every Parent?

Term insurance is a type of life insurance policy that safeguards and offers life coverage to the policyholder financially from future uncertainties. It is a cost-effective method to protect the future of one’s family members during unforeseen times. A sum assured is paid out to the predetermined nominee in the event of the unfortunate demise of the policyholder.

There isn’t any other alternative to purchasing a term insurance plan, in case you have children and other family members who are dependent upon you financially.

Reasons Why a Parent Requires a Term Insurance Plan

As referred above, it is significant for every parent to purchase a term insurance plan in case their children and other family members are depending upon them financially to fulfill their everyday needs. Some of the reasons why a term insurance plan is absolutely necessary for every parent is mentioned below:

• An Affordable Way to Safeguard Your Child’s Future

It is a responsibility of every parent to fulfill the needs and aspirations of their children. But in case something unfortunate happens, then it could act as a hurdle in the way of your child’s dream. Therefore, in order to make sure that the dreams of your child are fulfilled smoothly and they do not have to go through any kinds of financial hardships in future, it is extremely necessary for parents to have a good term insurance plan. With a term insurance plan you can avail high life cover at a lower premium amount. Thus, it helps you in protecting your child’s future in a very affordable way.

• High Claim Settlement Ratio

The objective of any insurance plan is to offer the nominee with a sum assured in the event of any unfortunate thing happening with the policyholder. For that you would like to maintain a plan that would pay a coverage amount or a death benefit to your child and other dependents in your absence. By purchasing a term insurance plan, you would get the much needed peace of mind. A term insurance plan enjoys a record of low claim rejection. Therefore, if you fill up the application form with honesty and make payment of the premium on time, then in all probability, your assigned nominee would receive the sum assured in case any unforeseen event happens with you.

• Easy to Avail

A term insurance plan is amongst the simplest forms of life insurance to avail. A term insurance plan can be easily purchased online, wherein you can obtain one instantly. In certain cases,on eis not even asked to go through a medical check-up. Hence, it makes the process of purchasing a term insurance plan for parents quick, simple and convenient. In case you have still not purchased a term insurance plan, then, do it as soon as possible as you cannot compromise on the needs of your child and other dependents.

• Longer Cover Period

A term insurance plan offers coverage to your life for a longer duration of time. You are allowed to purchase a term insurance plan for over 20-30 years or till 80 years of age. Thus, you are allowed to offer protection to your child and dependents for a long period and can also ensure that they have a financial safety net till the time they become independent. Hence, a term insurance plan for parents can give you a lot of assurance in this regard.

• Flexible

A term insurance plan is quite flexible. By adding riders, you can make the insurance plan even more suitable to meet all your needs. For instance, in case you are having a family history of critical illnesses such as cancer, then in that case you can opt for a critical illness rider. In case you get diagnosed with cancer at any hour after insuring yourself and have to stop with your work and shift to abroad for treatment, then you are not required to worry regarding the financial safety of your children. A term insurance plan bought with a rider would offer you an extra rider sum assured which can be used by you during these times.

Conclusion

A term insurance plan is an absolute necessity in case you have young children to provide for till the time they become independent. Life is uncertain and you would never be able to contemplate what could happen the very next moment. Thus, the sole way to predict a worry-free and safe future for your children is by ensuring that they have a required financial safety net at every phase of their life, whether you are present with them physically or not. And a term insurance policy allows you to offer this assurance to your children. Thus, purchase an ideal term insurance plan today itself in case you haven’t till now.

Also read 

What Is The Need To Purchase A Term Insurance Plan?

Term Insurance Riders and How They Benefit You

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.