Why is it Important as Parents to Buy a Term Plan?

Children are a huge responsibility. Especially if your children are still young and studying, providing for them financially is the only way to help them build a better tomorrow for themselves. But what happens in case of an unforeseen event? Who takes care of their financial expenses if you and your partner incur an untimely death? 

We all know that emergencies do not come with warnings. They arrive at your doorstep unannounced, and you have to deal with them boundless of your circumstances. In this case, you want to make sure that no matter what happens, your child is well protected and their finances are taken care of. Term plan can come in handy for this purpose. Here’s how!

What Is A Term Plan?

A term plan is the kind of life insurance that provides life cover to your nominees in case of your untimely demise as a policyholder. If both you and your partner opt for a term plan, you could accumulate enough cover to support your child’s financial future even when you are not around. This means your child’s financial goals, needs, and interests will not have to be compromised due to your untimely demise in any manner. That is why a term plan seems to be a smart investment in today’s day and age. 

A term plan is a necessity for all those parents who understand how important it is to cater to the financial needs of their children so they can have a safe future ahead of themselves. This is not only important for them to complete their education and accomplish their goals. It can also help them to get married without pinching pennies and look after themselves sufficiently until they start earning for themselves. 

How To Safeguard Your Child’s Aspirations With A Good Term Plan?

Affordable

A term plan is a very affordable choice. The best part about this plan is that you can get your hands on a high sum assured by paying cost-effective premiums. This leverage allows you to make the most of the plan without too much investment and pinching pennies. So, you can continue to use the best features and benefits of a term plan even at the most affordable premiums for convenience. 

Whole Life Cover

Term plans are known to provide fairly long life covers. This means your children can be protected under this cover financially for a long period of time. In fact, Whole life cover provides compensation for up to 99 years. That is why you must purchase it right away to help your child secure their financial future without any worries. 

Sum Insured Payout

The payout type of compensation provided to children helps them to curb their expenses and use the money mindfully. The policyholder can opt for this money to come to their children in the form of monthly or yearly payments. In fact, the payout can also be increased when needed. As such, this will make it easier for your children to manage the cash flow and take care of their financial expenses in need. 

Opt For Good Riders

Riders are a great selection for when you want to expand your child’s safety net. By choosing the right add-ons that may be relevant to your lifestyle, you can improve the chances of your child’s improved financial future. Accidental death benefits and critical illness are some of the main riders you can purchase from. Speak to your insurance provider today to learn about more available covers in need. This will help provide better protection when you are not around. 

Tax Benefits

Term plans also come with their own set of tax benefits. So, Section 80C is applicable to the premiums you pay. According to Section 80D, even the riders like Critical illness cover are applicable for better convenience of the policyholder and their nominees. In fact, the entire amount that your children will receive as nominees after your untimely death is also tax exempted under Section 10 (10D). 

Winding Up!

As parents, it is your duty to make sure that your child’s financial future is secure. Now, it is easier than ever to do this by investing in a good-term insurance plan. Start today to build a better tomorrow for them.