What Makes a Term Plan the Best Gift for Your Parents?

What Makes a Term Plan the Best Gift for Your Parents?

Your parents have been doing everything for you – from education to grooming and even job search. They have been spending every single hard-earned penny for your well-being and growth. Now that you have a good job and settled with your family, it is your turn to look after them during their retirement days.

Yes, what else can be more benefitting for your parents than being financially secured? That being said, buying a term insurance plan can give them enough protection without emptying your pocket. 

Let’s talk about term insurance and the need to purchase a term plan in life.

What Is A Term Plan?

Those who keep wondering what is term planit is nothing but a type of life insurance policy that provides coverage for a specific period or a specified term of years. In case the life insured dies during the tenurespecified in the policy and the policy is active, the beneficiary will receive a death benefit under the chosen term insurance plan. 

When life is uncertain and comes with an emergency crisis like Covid-19, it is high time that you need to have a term plan for the parent’sfinancial security. This will help them pay off debts, such as personal loans or home loans, if any, while also maintaining their lifestyle.

Term Plan – Why Is It the Best Gift for Your Parents?

Age is not a factor when it comes to uncertainties like COVID-19 or natural calamities. Anything can happen at any time. Hence financial protection in the form of term insurance plans can benefit your parents, even if you are not there.

Let’s have a look at the benefits of investing in term insurance plan:

  1. Secured family needs

At some point in time, youbecome the family earning member to look after your elderly parents. Buying a term insurance plan makes it easier for you to plan foryour family’s financial needs, even if you are not around. 

  • Pay off debts

We all have dreamt of having a car, a two-wheeler, or house, and procured them through loans. It should not be a burden to your family members, especially parents,when all of a sudden, you are not around. Investing in a term plan simply meansthat your family does not have to face theburdens of borrowings and debts. 

  • Minimized risk of living expenses

Even in your absence, your parentsshould be able to meet their day to day living expenses – be it a high spending nature or meagerspending. Investing in the best term insurance plan will make it easy for themto meet the two ends. 

  • High Sum Assured at an affordable premium

One of the highlighting benefits of a term insurance plan is its affordable cost. When compared to other life insurance policies, a term plan is available at an affordable premium. The premium amount is easily affordable in general and depends on how early you buy the term insurance.

That said, the earlier you buy a term insurance plan, the lower will be the premium amount. Also, the insured can get a low premium when buying the term insurance online. 

  • Multiple options for payout

As stated above, you might be paying the EMIs of your car, home, or personal loan that you have borrowed. Your absence shouldnot be a financial burden on your loved ones. It iswhere the role of the term plan comes into light. Your dependents will receive a lump sum amount in case of your unfortunate death, and this amount will help them manage the existing debts and financial liabilities.

Some best term insurance plans also give you the option of receiving a monthly income along with the lump sum amount as the death benefit. This monthly income can be very beneficial for your family to meet day-to-day expenses. 

  • Tax benefits

Buying a term plan provides tax benefits. The premium amount that you pay for the policy is tax-deductible. Also,the death benefit comes with tax exemptions as per the existing tax laws. 

  • Critical Illness Coverage

Life is just unfair when it suddenly tosses you down with some major illness that requires a fair amount of money for treatment. Thanks to additional riders/ add-ons, which help in strengthening your term plan. For instance, choosing a critical illness rider will help you get critical illness treatmentunder the scheme. 

  • Accidenal death benefit coverage

Accidents are uncertain, and death due to an accident can be traumatic for the family as well. But if you choose an accidental death benefit rider to safeguard your family’s financial future, that would be the best gift you can give to your parents. You can add this rider to your term insurance plan to get additional benefits as per policy terms.