Ankit had recently gotten a job with an international corporation in his city. As all children care for their parents, Ankit too cared dearly for his parents’ well-being and decided to ensure he provided for them now as they provided for him when he was growing up. He bought them things like appliances that made their lives comfortable, and also got them health insurance . One day, one of his friends mentioned that they recently purchased term insurance policies for their parents. Surprised, Ankit asked “Can I buy term insurance for my parents?” His friend remarked, “Yes, it’s easy as pie!”
What is term insurance?
Term insurance, popularly known as term life insurance is a type of life insurance policy that provides the person who takes the policy coverage for a fixed term, hence the name: term insurance. If the person who has been insured happens to die during the “term” of the insurance, a death benefit (sum paid to the beneficiary of a life insurance policy) is paid. This “term” could be any period of time agreed upon – 10 years, 20 years, 30 years, etc.
Can you buy term insurance for your parents?
Many people find themselves asking the question, can I buy term insurance for my parents? The answer – yes, you can buy term insurance for your parents given that they are in perfect health, earning and below 60. It will help ensure financial stability, and relieve stress for the person buying it and their parents.
What are the advantages of term insurance?
There are a couple of factors that make term life insurance stand apart when compared with other types of life insurance. Here they are:
- Simplicity: Term life insurance policies are quite simple to understand. Unlike normal life insurance policies , term insurance has no savings aspect, only coverage. By virtue of that, you only pay premiums for coverage; none of the money you pay goes into any sort of savings plan. So, the fact that you pay purely for coverage makes it a whole lot easier. This is directly tied to the second point, flexibility.
- Flexibility: As discussed above, the nature of term life insurance is such that it only covers risk, not savings. So, since there is no savings component, extending, renewing, and terminating term insurance policies is a straightforward process.
- Cost: Given than term insurance policies only provide risk coverage and have no savings component, you only pay for the risk cover, not saving. This makes term insurance policies relatively cheaper than other life insurance policies.
- Financial benefits: Apart from the fact that one can claim tax benefits when buying term insurance for their parents, in the unfortunate event of a parent's demise, term insurance plans often offer fixed monthly income for a specific period in addition to a lump sum pay-out.
How can one go about buying term insurance for their parents?
Before you go about purchasing term life insurance for your parents however, there are two things you need to look at:
- Firstly, you need to look at the amount of coverage you would like for your parents. Depending on their age and a couple of other factors, you can choose from different amounts of coverage that will have different premiums associated with them.
- Then, you need to finalise a term. Remember, the person insured will only be covered if the unfortunate event of their death occurs within the term of the policy.
Once you have these things in mind, it’s a fairly simple process. Future Generali for example, has a very convenient Flexi Online Term Plan , which you can opt for from the comfort of your home. It has flexible coverage options: basic life cover, which offers a lump sum payment in case of death and income protection, which offers monthly income on death till someone would have turned 60 or a period of 10 years, whichever is higher. It is lucrative because it provides for life cover up to the age of 75, competitively premium rates for women, and an assured discount in case you opt for a higher sum.
Three simple steps:
- Visiting the page and generating a quotation.
- Filling in the application form and paying for the premium, both online.
- Submitting all documents (also online).
So, getting life insurance for your parents is as easy as following those three steps!