Why Buying a Term Insurance is Important for all Parents

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.

  • Icon for Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability.


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.


Why Buying a Term Insurance is Important for all Parents

Term Insurance Quote
  • 6th May 2019
  • 2,206

Why Buying a Term Insurance is Important for all Parents

If you are a parent to a little child then you will surely understand that it is quite terrifying to see him or her grow up in a world that is not as safe as you would want it to be. Imagine a scenario of you not being there to protect your child when he or she needs you the most. At some point, you have to trust that your child will be fine even if you are not around. However, one thing that you can still do for your child is to buy term insurance for parents in order to secure your children financially.

Understanding the term insurance for parents

Before you buy a term life insurance for parents, you need to understand what a term plan is and how it can benefit your children. God forbid, if something happens to you before your son or daughter could grow up to secure a job, they suddenly lose the financial security that you used to provide them. This is even truer for a household with one earning parent. If you buy a term plan and set your children as nominees, they will get the pre-determined sum assured from the insurer, in case if an unfortunate incident takes place before the maturity of the plan.

Why term life insurance for parents is important?

One of life’s most excruciating truths is its uncertainties. You can never know for sure what might happen to you the next moment. Accidents can happen to anyone and at any moment. It takes only one second of miscalculation from a driver and your child can lose their parent. Apart from the emotional struggle, the financial insecurities too can make their life very difficult. The term insurance for parents can be helpful in that case. The term insurance cover is a pure life insurance policy. This means that it pays only when the policyholder dies untimely, before the end of the policy term. So, it comes with lower premiums but higher returns. When you buy term insurance, you can peacefully live with the knowledge that you have secured your children’s future financially.

If you look at the current inflation rate then you will understand how fast everything is becoming more and more expensive. From healthcare to education, the cost of basic human needs is rising drastically. If you have a newborn then it is time for you to realize that everything will become even more expensive when they grow up. It is important that you start planning for their future at the earliest. You need to start saving for them, and investments in the right insurance cover is a part of that. Term insurance plans can be very rewarding if you start early.

If you are a 30-year-old then buying a term plan now will cost you less in order to avail of an INR 1 crore cover compared to a 35 or 40-year-old parent. To get a cover of that amount, you only have to pay around INR 8,500 annually as premium for 35-years. This may vary depending on your health condition and the insurer, but it is still a smart idea to start early. Remember, buying the right term life insurance for parents is not only a necessity but it is an obligation for you as a parent.

- A Consumer Education Initiative series by Kotak Life

Also read

  • Why One Must Buy Term Insurance before 25 Years

    Term insurance plan is one of the policies that you need right away. It is a great investment to help you cope with the uncertainties of life. Click h...

    Read more
  • Key Things to Review in Your Life Insurance Policy Document

    A life insurance contract includes multiple clauses. At the time of life insurance policy review, it is important to check all details thoroughly. Her...

    Read more
  • Life Insurance vs Health Insurance

    Life insurance pays out a death benefit to the insured individual’s beneficiaries. Health insurance plans is pay for the policyholder’s current me...

    Read more

Related Plans

  • Kotak Term Plan

    Kotak Term Plan

    The Kotak Term Plan is a pure risk cover plan and an economical way of providing an adequate level of financial protection.

    Know more
  • Kotak Credit Term Group Plan

    Kotak Credit Term Group Plan

    Kotak Credit Term Group Plan provides life cover to a group of borrowers of credit institutions where the life assured is the borrower and the credit ...

    Know more
  • Kotak e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more