It is pretty standard to buy a term plan to secure the future of your children, but one can also purchase a term plan to ensure the livelihood of his/ her parents. Most parents feel stranded during their old age, especially when they become dependent on their children. To make them feel comfortable and secure financially, you can buy them the best term life insurance in India. There are many insurance companies available nowadays for senior citizens who will take care of all the financial security in your absence.

One of the main advantages of buying a term plan for parents is that it provides a steady source of income along with financial support. In the event of the sudden demise of one of the parents, children might face financial difficulty, but the insurance bought by their parents will help them in this situation. The term insurance for parents will help in creating a steady source of income for other family members. Also, in case of any outstanding debts and liabilities, the term life insurance should be considered. Let us learn the reasons to buy a term plan for parents. 

Reasons to Buy Term Insurance for Parents

Provided below are the reasons to buy term insurance for parents:

• To look after healthcare expenses

Over a period of time, life expectancy has increased, due to which the diseases and ailments have also increased. This may increase in the case of senior citizens and old people. Also, with an increase in age, their healthcare-related expenses may also rise, leading to financial issues. To deal with the rising healthcare expenses, parents can opt for term insurance, which will help them deal with critical illnesses and ailments, if any.

• Provides Independence

It provides financial security to the surviving parent in case of the sudden demise of one of your parent. A good term plan can buy them a great relaxation to deal with the stress as the death of his/ her partner leaves them with no source of income. The death payout provides financial security, enabling them to stay financially independent and secure. 

• Takes care of debts and liabilities

Some of the accumulated debts and liabilities must have been left unpaid at the time of the sudden demise of one of the parents, leaving behind the burden on the other one. Here, term insurance comes into the picture to safeguard one parent from the burden of repayment of the loan.

Advantages of Term Insurance for Parents

Provided below are the advantages of term insurance for parents:

• Tax Benefits

As per the Income Tax of India Act, 1961, an insured of a term plan can get an income taxdeduction for the amount of premium paid, a maximum of up to INR 1,50,000 in a financial year. Apart from the premium amount, the death benefit is also tax-free for the beneficiary. 

• Flexibility to Add Riders

One can also add riders as per his/ her own flexibility, as when the diseases or ailments increase, it becomes crucial to add riders for parents to the base plan. There are many riders available, including accidental coverage, terminal illness, critical illness, disability coverage, etc.

• Affordable

The term plans are cheaper than other life insurance plans as they are pure life coverages, and the cost of the premium is lower and quite nominal. Gift your parents a term plan to provide a protective life cover without dealing with fancy premiums.

• Death Benefits

In the event of the sudden demise of one of the parents, the other one will receive the death benefit. In case of the demise of both parents, the death benefit will be received by the children to take care of the monthly expenditures.

• Mental Peace

As parents get a sense of self-esteem and self-respect, they do not get a feeling of ignorance and loneliness. This makes the parents mentally healthy and active.

• Financial Security

The term insurance for parents provides financial security and reduces financial insecurities such as death, illness, disability, etc.

Points to be considered about Term Life Insurance for Parents

Provided below are the points that should be considered while opting for term insurance for parents: 

• The first point to keep in mind is that term plans are meant for those who want to save funds for the long term or any unplanned circumstances.
• They grow expensive with the passage of time, which means the premium amount at starting is cheaper at an early stage as compared to the later stage, i.e., in the late 40s or 50s. Parents should try to purchase the plan at the time they start their family planning.
• Term life insurance provides financial aid in the unforeseen situation of an unexpected critical or terminal illness. Parents who are aware of such critical illness as a family history should plan to buy a term plan as a tool of income replacement.
• It also includes a time within which the investment in the policy cannot be withdrawn or redeemed, i.e. a lock-in period. One should opt for a policy where there is no such lock-in period.
• One should also check for the maximum age within which the policy can be renewed in the case of term life insurance.
• Check for additional coverage, riders, etc.
• Look for hospitals and medical centres where the policy can be utilised.

Conclusion

A term plan plays a vital role in a parent’s life as every parent wants to safeguard the life of their child, and a term plan is the most risk-free solution to it. When parents start investing in a term plan for their children, it, in a way, ensures their children’s financial security as well. One should start investing at an early stage of parenthood to keep it affordable and less expensive. The same can be done through online modes available offered by different insurance companies.