Here’s Why You Should Give Your Parents A Term Insurance Policy This Diwali

Diwali is just around the corner, and this festival calls for celebrations full of zest, decorations and bright lights, delicious candy and savory, and, most importantly, a surplus of freebies. During Diwali, family members shop for sweets, electronics, clothes and more to show their love and appreciation for their loved ones. Although one can certainly indulge and spread love to loved ones through these little gifts, but this year why not do something unique, something different?

Growing up, our parents assured us of the best – the best education, the best clothes, the best chocolates and more. They have showered us with immense love and always put our needs first. This year, let’s give them something that shows our love and care for them. This year, let’s give our parents financial security with a term insurance plan. It might not be the most traditional Diwali gift, but it is certainly one of the most meaningful and honorable gestures.

What is term insurance?

Term insurance is a financial protection plan that provides your family with life coverage (loss compensation) in the event of an unfortunate event. It ensures that your family’s needs are met even if you are not there. This will help them maintain their lifestyle and not depend on anyone for their daily expenses.

Term insurance is an economical plan. It offers great coverage for a relatively low premium.

Buy term insurance for parents

Term insurance is usually taken out by parents to protect the future of their children. This cover, however, can still be knocked over. This implies that you can purchase a term insurance policy to provide financial security for your aging parents. This is especially important if your parents are dependent on your income. The amount of life coverage will ensure that your parents are not overwhelmed by the loans you have taken out, they are able to afford their daily expenses and are also able to pay for any age related illness / hospitalization. Buying term insurance for parents will help ensure that they spend their final years in comfort.

The main steps to keep in mind when selecting and purchasing term insurance for your parents are:

1. Secures loans

Over the years, you and your parents may have taken out loans for your education or the purchase of a house, car, etc. In the event of an unfortunate event, the burden of paying off debts may fall on surviving family members, such as your parents. In this case, a term insurance policy will prove advantageous. The family can use the life insurance money (claim money) to pay off these outstanding debt obligations and liabilities, relieving the family of any financial burden.

2. A peaceful retreat

After making so many sacrifices, your parents have earned the right to live out their retirement years in a comfortable and safe atmosphere without worrying about medical bills and living expenses.

3. Provide the best possible medical care

Your parents deserve only the best. Even in your absence, with the money from the life cover, they will be able to fight against health problems associated with aging, ensure frequent health check-ups and rapid diagnosis, as well as the appropriate care.

Finally, what insurance do they need?

By calculating their current and future demands based on the 3 points above, you can determine the coverage they will need, which will allow you to make an informed decision in their favor.

Conclusion

When it comes to life insurance, the main goal is to provide financial protection for your loved ones. A term insurance plan is one of the best financial tools because one can benefit from broad coverage for their parents against the uncertainties of life. The premiums are low and affordable. Since term insurance is the most basic type of life insurance, it is easy to maintain.

The author, Murli Jalan, is Head – Tied Agency & Direct Distribution at Bharti AXA Life Insurance. Opinions expressed are personal

(Edited by : Anshul)

First publication: STI


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Justin D. O'Neill

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