When we talk about term insurance, it is the parents who always make sure that the future of their children is protected. However, as children, you could also buy your parents term insurance. Now that you are financially independent and can take care of yourself, it might be the right time to think about your parent’s future as well. You would want your parents to be financially independent after their retirement. Things like education and urban inflation can take a dig at their financials. This could make them dependent on you. The best way to protect their future is with a term plan that can take care of their needs over time.
There are many life insurance plans available, and which one you choose will depend on your requirements. But with the term plan for your parents, there are things you can gift them.
Top 5 reasons to buy term insurance for your parents right now.
#1 Financial Protection
Buying a term plan will help secure the future of your loved ones. It will guarantee financial security for your parents as well as financial assistance if your parents and loved ones are dependent on you. Your parents, kids, and spouse will continue to live their lives with peace of mind without falling into the trouble of loans. A term plan is a great way to secure the future of your parents and loved ones.
#2 Monthly Income
One of the benefits of having a term plan is that it offers monthly income for a specific time period. That is, in addition to the lump sum it provides, the term plan also provides a monthly income that will help your loved ones cover their daily and monthly expenses. This will help them in maintaining a lifestyle they have always lived.
#3 Tax Benefits
The primary reason why most people take up term insurance is the lucrative tax benefits tailing it. Under Section 80C of the Income Tax Act, the premium paid on term plan gets an exemption from tax. Now, the maximum amount of tax exemption one can avail is INR 1.5 lac. This is a huge exemption and will help you in keeping your finances on track. What’s more amazing is that the tax benefit received by your nominee is also tax-free. Ao, all in all, it is a great affair.
#4 Early Buyers Benefit
If you purchase the term plan as young as possible, you can reap numerous benefits from the same. For starters, the premiums will be low. And buying life insurance plans at a young age gets you high cover at a low cost. Term life insurance policies are the most affordable plans you can purchase. And by starting early, you gift higher returns to your parents.
#5 Additional Benefits
Life insurance plans come with certain riders that can prove to be very beneficial. Considering the increasing lifestyle diseases, you can invest in riders like accident coverage, cancer protection, and disability coverage.
Buying a term insurance plan for your parents is the best thing you can do as their child. It will not only look after their financial requirements but will also give them peace of mind.