Term Insurance for Parents: An Overview
Parents usually buy a part-time plan to secure their child's future. However, there are no hard and fast rules to reverse roles. Children can also purchase term insurance for parents to support their parents. Remember, your parents didn't have access to the financial planning services you can get now, even if you saved a lot of money for retirement. A term plan provides financial protection in the event of accidental death of the insured. There are no regular payments in the plan when the insured person dies. The beneficiary receives the insurance amount from the company. A parents' insurance plan covers mortality risk and provides financial security to the insured's family. This article provides complete details regarding the term insurance for parents its benefits, point to remember.
Why Should You Avail Life Insurance for Parents?
Financial protection:
Protect the future of your parents by purchasing term life insurance for parents. A term plan provides financial security for your parents and, later, for your spouse and children. Provide financial assistance in your absence. Your parents, spouse, and children can get by without falling into the debt trap. A fixed plan is an investment you make today to secure the financial future of your loved ones while you are away.
Monthly income:
Term insurance is insurance that provides monthly income for a set period. In addition to the lump sum payment, the insurance plan offers a monthly revenue to help cover your monthly expenses. The monthly income allows the family to maintain their livelihood.
Tax benefits:
Premiums paid for term insurance for parents are tax-exempt under Section 80C. The maximum exemption amount is INR 1.50 lac. In addition, the tax benefits received by policyholder nominees are also tax-exempt.
Early Buyer Benefits:
Making an investment decision has many benefits. As you age, you'll enjoy lower premiums with Life Phase Supplements. By getting insurance when you are young, you can get high coverage at a low cost. A subscription plan is one of the cheapest plans available. By paying a small premium, you can give a higher return.
Other benefits:
An individual can choose from many available plans. With the increase in lifestyle-related diseases, it has become essential to invest in insurance such as disability insurance, cancer insurance, and accident insurance. These drivers are added to term plans to provide coverage for a severe medical condition or unfortunate event.
Benefits of Term Insurance for Parents
- Tax incentives – Investing in a term plan also offers attractive tax incentives. Policyholders can claim tax benefits on their premiums up to INR 1,50,000. Nominees are also entitled to tax benefits on the amount of insurance they receive under the policy under the provisions of the Income Tax Act 1961.
- Affordable Premiums - Term plans are known to be one of the cheapest forms of insurance. It's even cheaper if you buy it when you're young. The sooner you buy a plan, the cheaper you can get it, considering there is less risk due to being young.
- Buy Online – Buying a term insurance plan for parents online can save you a lot of money. It can get the same program at a lower premium, efficiently managing your policy, paying your premium online, renewing your policy online, and accessing your policy anytime. Flexible-Premium Payments When paying premiums, policyholders typically have several options based on their financial capabilities and convenience. Insurance companies usually allow premiums to be paid in various ways, such as a single payment or periodic installments (monthly, quarterly, semi-annually, or yearly).
- High Coverage – Term plans are famous for offering high coverage to your loved ones at affordable premiums.
Points to remember before buying term insurance for parents
- Evaluate your family's needs and financial situation before deciding on a policy amount.
- When determining coverage, the most recommended rule is to set the amount insured at 15-20 times your annual income.
- Before you buy a plan, compare different plans online to determine which method offers the best value.
- Consider purchasing a plan that also offers add-on drivers that you can buy to extend your plan's coverage.
- Most importantly, let the candidate know that you purchased a subscription.
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Final Words
Securing your parents' old age can be the best assurance of security that can be given. Parents never ask for anything except our happiness. Why not do something for their happiness? Many companies provide early buy benefits, long-term plan discounts, and many more perks and benefits for term life insurance for parents. Always be clear and sure regarding the plan he purchased. Never believe in fraudulent activities or other fake publicity of life insurance policies. Only opt for trusted services.