Why Should New Parents Buy Term Life Insurance?

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Why Should New Parents Buy Term Life Insurance?

Term Insurance Quote
  • 26th Nov 2021
  • 315

Why Should New Parents Buy Term Life Insurance?

When you become a parent, your responsibilities increase. You must fulfil specific duties towards your child and cater to their needs. One of the critical responsibilities, however, that you must perform is securing your child’s future. As a parent, one of the most vital securities and gifts you can give your child is assuring their financial security.

Talking about securing your child’s financial future, one of the best ways to accomplish this goal is to purchase a term life insurance policy. Term plans are the most affordable life insurance policies, and they provide your family financial aid in the event of your untimely demise.

Today, in the purview of rising inflation, it can be challenging for an average person to maintain the lifestyle of the family members, especially if they are the only earning member. In times like these, term insurance comes in handy and gives your family much-needed financial security.

Why is term life insurance a necessity for all new parents?

Term insurance is vital for all new parents. As a parent, you would want to secure the future of your child. Buying term insurance is the most risk-free and affordable way to accomplish it. The term plan can act as a Plan B and ensure that your child gets financial security in an unfortunate event.

The fact that a term insurance policy offers guaranteed security by paying a death benefit to the dependent family members increases its credibility. When you invest in a term plan, you can rest assured that your child’s future is secured. Also, you need not burn a deep hole in your pocket or change your current lifestyle to buy these plans.

To make the most out of the term plan, it is better to purchase it in the early stages of parenthood as the premium is much cheaper. Today, as most insurance companies offer digital services, you can easily buy a policy online. You can also compare the different policies from insurers and choose the one that suits your specific needs and fits your budget.

Other benefits of buying a term life insurance policy

Apart from its exclusive benefits for new parents, term insurance also offers several other benefits to the policyholders, including:

  • Term insurance policies are one of the cheapest ways to guarantee financial security to your loved ones. It also has the most affordable premium compared to other types of life insurance policies.
  • These plans are easy to understand, and even a first-time life insurance policy buyer can easily understand the terms.
  • Since it is a pure protection policy, term insurance offers high coverage at an affordable price. You can get extensive coverage for more extended periods up to 30 years or more.
  • You can easily renew or cancel the term insurance online. To renew the policy, visit the insurance company’s website, click on the policy renewal option, and follow the steps. To cancel your term policy, stop your premium payment.
  • A term life insurance policy allows you to get attractive tax benefits and reduce your overall annual tax liability. The premium you pay for the policy is eligible for deduction up to Rs. 1.5 lakhs in a financial year under Section 80C of the Indian Income Tax Act. Also, the death benefits that your family may receive are fully tax-exempt under Section 10(10D).

Leave a good legacy for your child with term insurance

When you become a parent, you must fulfil the duty of taking care of your child’s needs; it becomes one of your primary responsibilities. Hence, it is advisable to purchase term life insurance at an early stage of becoming a parent. It could help you leave a good legacy for your child in the future.

- A Consumer Education Initiative series by Kotak Life

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