Why Should New Parents Buy Term Life Insurance?

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Why Should New Parents Buy Term Life Insurance?

Why Should New Parents Buy Term Life Insurance?
  • 26th Nov 2021 |
  • 591

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.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

9 Ways to Help Family Members in Financial Trouble

Ensure Protection Against Death, Disease & Disability With Life Insurance

Insuring Against Accidents with an Accidental Death Insurance Rider

What are incremental term insurance plans?

How Does A Term Life Insurance Work in India?

Why Should You Add a Rider to a Term Insurance Plan?

How do I Calculate My Term Insurance Premium

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Why Spending Time with Friends is Essential for Your Mental Health?

Planning For Children's Future

Insurance Policy for Housewife In India

What Should You opt for - Limited or Premium Pay?

How Much Term Life Insurance Cover Do I Need?

Difference Between Term Insurance and Endowment Plan

What Happens if you Hide Facts in your Term Insurance?

Choosing Riders for Insurance Plans

All about Online Income Tax Calculator

Advantages & Disadvantages of Term Insurance in India

Know How to Invest at Every Age for Larger Returns

Can I Get Term Insurance on Behalf of My Spouse?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Comparing Term Plans – What Should You Look Out For

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Why 1 Cr Term Plan Is Necessary For Family?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Should Youngsters, Working Couples Buy Term Insurance Plans?

5 Term Insurance Benefits for Single Women

8 Benefits of Term Insurance You Should Know

Is Life Insurance Investment Worthy Enough

Is There Any Tax Benefit on Term Insurance?

Protection for your family

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

How to Compare Term Insurance Online

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Do You Need Term Insurance Cover After Retirement?

Calculating Term Insurance Premium

Term Plan with Spouse Cover

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

How To Change The Nominee in Term Insurance?

Best Investment Plans for Children - Secure Your Child's Future

Which Death Type Does Your Term Plan Not Cover?

All you need to Know about Term Insurance Plans for housewives

Is Term Life Insurance Plan an Investment or Expense?

What is Term Insurance? Term Plan Meaning and Definition

Why should single women purchase term life insurance?

Why does every working women need life insurance?

Why Should You Not Take A Term Plan Without Medical Test in India?

What Is the Correct Age to Buy Term Insurance?

What Should Be The Duration Of Your Term Plan in India?

3 Things to Consider When Buying Term Insurance, If You are Single

Eligibility Criteria for Buying Term Insurance in India

Can Term Insurance Plans Be Purchased As A Gift?

What are the Documents Required for Term Insurance Plan?

Term Insurance: Smokers vs Non-Smokers

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

How to Buy 1 Crore Life Insurance Policy Without Medical Test

5 Reasons to Buy Term Insurance When You are in Your 30s

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Form 16, Form 16A, and Form 16B?

Importance of Term Insurance at Every Stage of Your Life

Term Insurance Age Limit – Term Plan for All Age Groups

10 Ways to Mentally Refresh After a Stressful Day

4 Methods to Calculate How Much Term Insurance You Need

Make Your Online Term Plan Your Familys Monthly Payout

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Should you have more than one nominee in your term insurance?

Steps on How to Buy Term Insurance Online

What All Documents Required For Term Insurance In India?

What Is a Renewable Term Insurance Policy?

Advantages of Buying Term Insurance in Your 50s

Should You Have Multiple Term Life Insurance Policies?

Different Types of Premiums in Term Insurance?

Does Term Insurance Cover Accidental Death?

Term Life Insurance Plan for Smokers vs Non-Smokers

Why Term Insurance Is Better Than ULIP?

Can I Extend the Tenure of My Term Insurance Plan?

9 Point Guide on how to File Income Tax Return Online

Make Your Online Term Plan Your Family's Monthly Pay Cheque

10-Year Term Life Insurance Policy - Explained in Detail

8 Factors to consider before choosing a Critical Illness Insurance

How Much Term Insurance Do I Need

How to Surrender Term Life Insurance When You Have No Liabilities?

Why Term Plan Should Be The First Step To Securing Your Future?

What is a short term insurance policy?

Term Insurance Plans and Policies for Smokers

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Insuring yourself against Ill Health with a Critical Illness Rider

6 Reasons That Make Term Insurance a Must Buy

Insuring Against Disability With Disability Insurance Rider

Term Plans are Definitely Cheaper than You Think!

Can I Make Changes to My Term Insurance Policy Post Purchase?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Busting Myths and Facts About Term Insurance Policies

Insuring Protection Against Death With Death Insurance Rider

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Why Premium Amount for Term Insurance is So Low?

Is ₹1 Crore Term Insurance Good Enough Cover?

Term Insurance With Riders In India

Why Married People Should Buy Term Insurance Under MWP Act?

4 Reasons Why You Need Critical Illness Cover

Can Senior Citizens Avail Term Insurance?

5 Things To Consider While Buying Term Insurance Plan

Do Beneficiaries Pay Taxes on Term Insurance?

Why Buy Term Insurance Even at Rising Rates?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Term Insurance Basics You Should Know

How To Choose the Right Sum Assured Under a Term Plan?

What Types of Deaths Are Covered in a Term Insurance Plan?

Why Term Insurance Is Important in times of COVID-19?

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

How to Identify Term Insurance According to Your Needs?

Reasons You Need Term Insurance Plan as a Self-Employed Person

All About Term Insurance Inbuilt Coverage

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

What is Insurance Premium - A Detailed Guide

What Are Insurance Riders and How to Choose Them in a Term Plan?

Is a Term Insurance Policy Portable?

Gift Your Father A Term Insurance Plan This Father's Day

5 Benefits of Early Retirement Planning

How To Calculate The Amount Of Term Life Insurance You Need?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Planning For Son or Daughter's Wedding

Term Insurance with Critical Illness

9 Most Frequently Asked Questions on Term Insurance

Top 3 Reasons Why You Should Buy A Term Plan Now

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

8 Things To Do After Buying Term Insurance

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Is term Insurance Needed for People With No Dependents?

8 Types of Death not covered in Term Insurance Plan

Is Group Term Life Insurance Provided By Employer Sufficient?

Is It Good To Buy A Term Insurance Plan In 2022?

Buying A Term Insurance Plan? Take These Factors into Account

Should you buy a Renewable Term Life Policy?

How To Choose the Right Term Insurance Plan?

What Are the Best Term Insurance Plans for Planning Retirement?

Why is it important to buy term insurance plan?

How Much Cover Should I Take In A Term Plan?

What is Critical Illness Policy?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Why Should You Buy Term Insurance in 2022?

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Can I Buy Term Insurance for a COVID-19 Patient?

Different Types of Protection Plans

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Zero Cost Term Insurance Plan: What is & Should you buy it?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Increasing Term Insurance and Riders

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Do I Need to Give a Medical Test for Term Insurance in India?

How Does Term Life Insurance Work? Learn the Benefits

Side Effects of Covid-19 Booster Doses

Cost of Term Insurance Likely to Increase Soon

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Can You Increase Your Term Insurance Cover?

Why You Must Include In Your Financial Planning?

Endowment Plans vs Term Plans: Understanding the difference

Everything About Claim Settlement Ratio for Term Insurance

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Tax Benefits of Term Insurance in India

4 Things To Expect From Your Term Insurance Plan in India

Should You Buy a Term Plan After 40?

Why Buy Term Insurance Plan With a High Cover?

Individual Life Insurance vs. Group Term Life Insurance

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Tips to Choose the Right Term Period for Term Insurance Plan

Term Insurance Calculator - Everythng You Need To Know

Understanding Term Insurance Riders

6 Types of Death not covered in Term Insurance Plan

How Not To Get Your Term Insurance Claim Rejected

What is a term insurance plan with a return of premium, and how does it work?

While Buying Term Insurance Compare Features, Not Just Premiums