Importance of Term Plan for a Single Child

Importance of Term Plan for a Single Child

As a single child, you need to be more responsible for your aged parents and your family. You should start inculcating a habit of investing money to keep your parents financially secure. If anything unfortunate happens to you, they shouldn’t be helpless or be dependent on anyone else for financial help in your absence.

To get good returns later with your investments, you should consider investing in the best term insurance plan in India to get end-to-end financial coverage. If you choose a customized plan for yourself with add-ons, a single plan will cover several other benefits to provide you and your aged parents assistance in difficult times. 

After reaching a certain age, it’s not easy for your parents to arrange for a huge corpus of finances during critical illness or repay any loan later. Therefore, you can arrange for the same by investing in a term insurance plan.

For availing of the best insurance plan in India, you should go through several insurance plans provided by various insurance providers online. Before you invest in any term insurance plan, you should be clear with the life insurance meaning.  

Given below are a few reasons you should opt for the best term insurance plan in India:

  1. Financial Backup For Your Parents

You should choose to invest in a term insurance plan to create a financial backup for your parents. If anything, unexpected happens or you meet a severe accident, your parents can claim the insurance amount and get your treatment done. Otherwise, they might get helpless and depend on somebody else for the finances at such a crucial time.

  1. Health Cover Benefit

With the increasing medical costs, which include many other things apart from just hospitalization expenses, it is difficult to arrange for such a huge amount on the spot. It is better to be prepared for the same in advance, such that you have ready finances if you face any uncertainty later.

The best term insurance plan in India comes with various other benefits you can opt for. You can also have critical illness coverage along with other benefits and be financially secured if any unexpected disease happens to you.

  1. Peace of Mind

Being a single child, you might feel insecure about who will take care of your parents if anything happens to you. Though that would be the most unfortunate thing that can happen to any parents, you can give them a financially secured life. Few things are not in your control, but you can definitely arrange for the same beforehand to be worry-free. 

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  1. Parents Become Financially Independent In Your Absence

To make your parents financially independent in your absence, you should opt for the best term insurance plan in India to avail of maximum benefits. 

While choosing a term insurance plan, you should consider all the associated charges with the term plan and select one with the minimum charges and maximum benefits. To provide fair coverage, you should invest in insurance equal to 8-9 times your annual earnings. 

  1. Low Claim Rejection

It would help if you make all disclosures related to your health, finances, etc., on your application. A term insurance plan generally has a lower claim rejection rate. 

As per the Insurance Regulatory and Development Authority (IRDA) regulation, an insurance company cannot claim that there has been a non-disclosure regarding any material information after two years of the policy being effective.

  1. Compensation For Pending Loans 

If you have any pending installments of loans, your parents will have to repay the amount in case of your untimely demise. But, it’ll be difficult for them to manage finances for everything, like fulfilling their needs, household expenditure, and loan repayment as well.

If you buy the best term insurance plan in India at a young age, you’ll not have to worry about the financial condition of your parents. They’ll be able to easily pay your pending installment amounts out of the compensation amount that they’ll receive against the term insurance policy.

Apart from making arrangements for your aged parents, term insurance will also help you in availing tax benefits on the amount as per Section 80C of the Income Tax Act, 1961. The tax-benefit on the investment amount can be availed up to Rs. 1.5 Lakh, which makes it a win-win situation.

Once you’ve decided to invest in a term insurance plan, you should choose a plan from reputable insurers like Max Life Insurance. They have a simplified process for settling the claim and provide end to end assistance. Your parents would require an insurer who can easily release the claim amount without any complications in your absence. This will make their lives more comfortable and give long-term financial security.

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