Right from the time you grow up, your parents might have managed to fulfil your financial goals until you settle financially. However, your financial responsibility towards your parents can drastically increase after you start earning. Since your parents might be nearing their retirement period while you grow older, they might need your financial support to lead a comfortable future.
While your parents can cherish your presence, they might suffer financially in your absence if you are the sole breadwinner of the family. Under such a scenario, having term insurance can play a crucial role. A term insurance policy can let you cover your parents financially from the eventualities of life when you are not around to look after them. The primary objective of a term policy is to offer financial security to your loved ones in your absence.
Since a term plan can safeguard your parents financially, you should buy term insurance. While purchasing a term plan, you might come across various term plan options in the market. Due to a host of options, you might get confused at the time of purchase. Therefore, let’s go through the top three tips mentioned below to buy term insurance for your parents:
- Consider the past medical history
As your parents grow older, they might come in contact with severe health conditions such as stroke, cancer, kidney failure, and so forth. For such illnesses, medical treatments can be expensive. If you are not around to offer financial aid to treat their diseases, your parents might tend to avoid the treatments due to high medical costs. When you buy term coverage, your parents can use the pay-out to cure their illnesses.
On the other hand, you should disclose your parent’s medical history accurately to your insurer. If you inform about the current health status of your parents, your insurer can be able to determine the premium value of your term insurance. The premium amount can depend on the health conditions of your parents. Therefore, you should buy term insurance when your parents are fit to avoid high costs. In simple terms, the fitter your parents, the lower your premium amount.
- Identify their financial goals
Every individual can have financial goals in life, whether it is you or your parents. However, your parents might have sacrificed their dreams to provide for your financial requirements when you were young. Although they might aim to achieve their unfulfilled dreams after retirement, they might still need your financial help after the flow of their professional income completely stops.
Before purchasing a term plan to meet your parent’s goals, you should identify what they plan to achieve. Typically, they might aspire to travel the world, start a new business venture, indulge in sports activities, and so forth. You should discuss their financial goals with them and plan your finances accordingly.
- Consult a financial expert
Purchasing a term plan can be quiet simple. However, it can end up into a daunting task if you don’t know the right type of term insurance for your parents. Many insurance companies can provide you with a diverse range of options to choose from. Before purchasing a term plan, you should research and compare the term plan options to determine the difference between features, benefits, and premium.
If you are unable to understand the details of term insurance policies, you should seek financial help. A financial expert can allow you to make the right choices based on your financial needs as well as guide you through the whole selection procedure. With an expert’s help, you can even ensure you get high coverage at an affordable rate as well as high term insurance benefits.
As highlighted above, talk to your folks before you buy a term insurance plan in India. Understand their coverage needs and financial aspirations. Moreover, gather as much as information possible from them to apply for term insurance. Since the term insurance is for your parents, it should ensure that their financial requirements are met with the coverage amount in your absence.