Usually, parents buy term plans to safeguard their children's future. However, there is no hard and fast rule for the reverse cover. Even children can buy term plans to secure the livelihood of the 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.
These are the things you can gift your parents with a term plan.
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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 parent, 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.
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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.
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Tax Benefit:
The premium paid on term insurance gets an exemption from tax under section 80C. The maximum amount of exemption is INR 1.50 lac. Further, the tax benefit received by the policyholder’s nominee is also tax-free.
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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.
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Early Buyers Benefit:
If you make the investment decision while you are young, you can avail various benefits from the same. You will be able to enjoy a low premium with a life stage increment as your age increases. Buying an insurance policy at a young age ensures that you get a high cover at low cost. Term plan is one of the most affordable plans for you to invest in. By paying a small premium, you gift higher returns.
It is essential to invest in a policy that will cover all the expenses of your loved ones in your absence. You can purchase online term insurance and remain stress-free about the financial security of your parents. With term insurance, you are gifting financial security to your parents and your spouse and children. Life is unpredictable, and if anything, unfortunate happens to you, your family will be emotionally and financially devastated. If you have a term insurance plan, you will be able to reduce their stress to some extent. Consider the monthly expenses, your current lifestyle and future events like the education of your child when you fix the sum assured. The sum assured should be sufficient to cover the expenses of your family now and in the future. We hope nothing unfortunate ever happens to anybody, but precaution is always better than cure. In case of any unfortunate event, you will remain rest assured that your family will have financial protection.
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