Having a kid is the most exuberant feeling that parents can experience, but it also sinks in the responsibility of saving for your child’s needs. There are different investment options that parents can choose for their kids. Nonetheless securing the child’s future even if death occurs to the primary earner of the family is also essential.
Raising a child could be an expensive affair, which starts from the initial stage of raising the child from an infant to completing the education until he is an adult. Regardless of whether both the parents are earning or a single parent earning, term insurance becomes a must. This assures seamless financial flow even after the untimely demise of the earning parent.
Why Choose Term Insurance
Term insurance is one of the popular insurance types available in the market that too at affordable rates. In case of the demise of the policyholder, the assured sum is given to the nominee. This way, the future financial needs of the family is taken care of. Here are a few reasons why a term insurance policy is necessary for all parents.
Uninterrupted Financial Support– At every stage of the child, there would be several goals to be fulfilled, and all these goals require money. So before selecting a plan, it is necessary to know the life goals. This will ensure that the standard of living of the surviving members remains the same in the event of the death of the bread earner.
So, life insurance here replaces the income that would otherwise be an interruption to the financial goals.
Risk- free Investment– To raise a child, a person would invest in different avenues like PPF, mutual funds, shares, gold or real estate. These self -funded investments can only help in building corpus if the person regularly invests, which needs the person to remain alive. In case of a nasty event, such investment process would end up abruptly, bringing vagaries to long term financial goals.
In case of an untimely death, life insurance acts as continuous support to fulfil the financial goals that were meant for the child or the family.
Along with these benefits, there are added benefits of term insurance plans that one can enjoy while investing.
Tax benefits– Policyholders investing in term insurance plans can get tax benefits on the premiums paid toward the policy. After the death of the policyholders, the nominees can also get tax benefit on the assured sum.
Premiums at an affordable price– Policies if purchased at a very young age can get premiums at the lowest price. This works in a manner that the earlier you purchase a premium, the lower is your health risk and the premium paid is low.
Purchasing Insurance online– Getting the term insurance online can be more affordable as it eases the process of managing the policy. Also, one can get it after comparing the different insurance plans, with the convenience of renewing it or paying the premiums online.
The flexibility of paying premiums– When paying premiums, policyholders can choose from multiple payment options depending upon their convenience and payment capabilities.
Different payments options can be single- time payment, regular payments (monthly, quarterly, half-yearly or yearly).
With term plans, you can not only assure financial stability in your absence but can also help your loved ones with a high amount of cover.
