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This article is more than 2 month old.

Here's why you should gift term insurance policy to your parents this Diwali

Mini

While growing up, our parents ensured the best for us – best education, best clothes, best chocolates and more. They showered us with immense love and always put our needs first. This year, let’s gift them something that showcases our love and care for them.

Here's why you should gift term insurance policy to your parents this Diwali
Diwali is just around the corner, and this festival calls for celebrations filled with zest, bright decorations and lights, delicious sweets and savories, and, most importantly, a surplus of gifts. During Diwali family members buy confectionaries, electronics, clothes and more as gifts to show their love and appreciation for their loved ones. While one can certainly indulge and shower love upon their near and dear ones through these small gifts but this year why not do something unique, something different?
While growing up, our parents ensured the best for us – best education, best clothes, best chocolates and more. They showered us with immense love and always put our needs first. This year, let’s gift them something that showcases our love and care for them. This year let’s gift our parents - financial security with a term insurance plan. This might not be the most traditional Diwali present, but it sure is one of the most meaningful and honorable gestures.
What is Term Insurance?
A term insurance is a financial protection plan that provides your family with a life cover (claim money) in case of an unfortunate event. It ensures that your family's needs are met even if you are not around. It will assist them in maintaining their lifestyle and not rely on anyone for their day to day expenditures.
Term insurance is a cost-effective plan. It provides a large cover for a comparatively low premium.
Buying term insurance for parents
Term insurance is usually purchased by parents to protect their children's futures. This cover, however, may always be reversed. This implies you can purchase a term insurance policy to secure the financial security of your ageing parents. This is especially important if your parents are dependent on your income. The life cover amount will ensure that your parents aren’t burdened by any loans that you may have taken, they are able to pay for their day to day expenses and are also able to pay for any age related ailments/hospitalization. Buying a term insurance for parents will help ensure that they spend their later years in comfort.
The main steps to keep in mind while selecting and purchasing term insurance for your parents are:
1. Secures loans
Over the years, you and your parents may have taken loans for education or purchasing a house, a car, and more. In case of an unfortunate event, the onus of repaying the debts may fall on the surviving members of the family, such as your parents. In this case, a term insurance policy will prove to be beneficial. The family can use the life cover money (claim money) to pay off these unpaid debt repayment obligations and liabilities, thus, relieving the family of any financial burden.
2. Peaceful retirement
After making so many sacrifices, your parents have earned the right to live their retirement years in a comfortable and safe atmosphere free of worrying about medical costs and living expenses.
3. Providing the greatest medical care possible
Your parents are deserving of nothing but the finest. Even in your absence, with the life cover money, they will be able to combat health difficulties that come with ageing, assure frequent check-ups and quick diagnosis, as well as the appropriate treatment.
Finally, how much insurance do they require?
By calculating their current and future demands basis the above 3 points, you can determine how much coverage they'll need, allowing you to make an informed decision in their favor.
Conclusion
When it comes to life insurance, the main goal is to ensure financial protection for your loved ones. A term insurance plan is one of the best financial tools as one can avail a large coverage for their parents against life’s uncertainties. 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. The views expressed are personal
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