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You may have your own way of expressing love and concern for your parents! Everyone has.
Just the way your parents never thought much when it came to buying valuable things for you, you must do the same. When old the active income for your parents might stop, but for you, it can grow fast. So it is when you can create a source of income for them. There could be ways in which you can do it. Out of those, the wisest way to create safety and wealth is to buy life insurance for parents.
Yes, you read it right!
If a child, a spouse, a life partner or a parent depends on you and your income, you need life insurance.
Suze Orman.
- Can I purchase life insurance for my parents?
- How can a life insurance policy for parents help?
- Best life insurance policies you can purchase for parents.
- How to buy life insurance for parents?
- Things to keep in mind before purchasing life insurance for my parents.
- Conclusion
Can I purchase life insurance for my parents?
Yes, you can buy life insurance for your parents.The average life expectancy rates have increased, which has resulted in the rise in the older population in India. As a result, lifestyles have changed along with the rising inflation. Overall, the living cost is higher, requiring you to arrange for funds.
Buying life insurance is arranging funds for unexpected emergencies. It provides financial security to the policyholder. Your parents might feel financially distressed in old age; they can have a sense of security with life insurance.
Parents' life insurance policy can help them replace their income and offer them financial help.
In case of the unfortunate demise of either of the parents, the spouse gets back-up to bear with the financial difficulties.
With a life insurance policy, you can manage outstanding debts.
How can a life insurance policy for parents help?
Sudheer purchased a life insurance policy for his parents. He lived with his wife, 2 kids and dependent parents. Sudheer and his wife were both working, but the expenses, especially the house rent and the kids' tuition fees, were sky-rocketing. This led both of them to think about creating wealth and financial securities.10 years after buying the life insurance policies for parents, the procedure started paying back the returns. Finally, the parents had a source of income. For 5 years, when Sudheer's father died, his mother felt confident because the life insurance policy occasionally paid her.
When his elder son was about to get into college, the fees were high. The life insurance policy helped the family manage their expenses. In addition, it offered monetary help to both Sudheer and his mother.
Best life insurance policies you can purchase for parents.
There are different types of life insurance policies you can purchase for parents. These policies include :1. Term Life Insurance Policy: Term insurance is a life insurance policy that offers financial security for a specified period. The premium for the policy term is the same for any individual. If anything happens to the life insured during the policy term, the dependents or the family members get the sum assured as the death benefit. The term life insurance is a pure protection plan for which the premium is low for higher choices. You can buy a term insurance plan from here.
2. Retirement Plan: Retirement plan or pension plan are savings cum investment plans. This insurance policy helps your parents earn when they are not employed. After years of paying the premium, your parents can withdraw all the amount saved. With a pension plan, partial withdrawals are allowed. The amount of money on maturity helps your parents maintain a standard of living. Find out more about pension plans here.
3. Savings Plan: The savings or endowment plan will help you build a corpus of money. You can save money for different goals or dreams that your parents might have. The savings plan provides financial protection to the family in case of any unfortunate events.
4. Health Plan: Medical inflation and the probability of contracting a critical illness rise. You may not always have funds to manage expenses. This is why you can have a health plan for your parents. The plan will enable you to manage a sudden financial crunch, especially when your parents are diagnosed with a critical illness.
How to buy life insurance for parents?
Before buying the life insurance policy for parents, you will have to follow these:- Evaluate and analyse all your financial requirements, especially living with a family. Consider the monthly monetary flow like fees, bills, loan EMIs, etc.
- Understand the age of your parents and their financial status. Compare the plan you want to choose with their style of living at present. For the best and affordable insurance plan, you can visit https://lifeinsurance.adityabirlacapital.com/.
- After deciding the requirements, find out which life insurance plans you can buy. Then analyse your premium paying capacity and the policy tenure you would want.
- Choose the insurance plan online and see the affordable life insurance for parents.
- Visit the website online, click buy and then pay the premium.
Benefits of the life insurance policy purchased for my parents.
Affordable life insurance policies that you purchase for your parents will offer you these benefits:- Your parents will feel protected, confident, and respected in old age.
- Investing in life insurance policies for parents will avert financial uncertainties in the future.
- With a life insurance policy, if either of the parents passes away, the other has a feeling of security.
- All the premiums of life insurance policy provide you tax benefit under Section 80C of Income Tax Act, 1961. The maturity amount on the death of the life insured is also tax exempted under Section 10(10D).
Things to keep in mind before purchasing life insurance for my parents.
These are the things that you can keep in mind before purchasing life insurance for my parents:- Understand the current lifestyle of your parents: Understand the current lifestyle of your parents before choosing life insurance. The life insurance policy should offer financial help to your parents, especially when they are in need.
- Buy the right product for a financial goal: Suppose your parents have taken a loan for building the house you live in. You can buy a term plan for the specified period. If anything happens to the life insured, the policy will pay the death benefit. The amount of sum assured received will help you get rid of loan liabilities if any.
- Check your premium paying capacity: You can know the premium paying capacity for a specified policy term. Compared to other monthly expenses, you can decide the premium and the policy term. Remember that if you are invested for the longest possible term, the power of compounding pays you more.
- Find out the Claim Settlement Ratio: Check the claim settlement ratio of a company. It indicates the claim settled by the company against the total number of claims received by the insurer. If the claim settlement ratio is high, the company has a good image, showing the customer-centric approach.
- Explore the services offered by the insurance company: You must explore the services provided by the insurance company. The company must provide service on digital platforms to speed up the process.
Conclusion:
You can gift as many things to your parents as you want. But buying a life insurance policy for your parents would be the best solution. A life insurance policy will support them for sudden financial crises in the future. Purchasing a policy for your parents becomes essential when you have dependent children to take care of. Though you would never wish that anything happens to your parents, a life insurance policy will reduce financial troubles.
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