Why new parents should buy a term life insurance?

2021-04-19

886 Views

Begin securing your future

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

...Read more Consent is required

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Having a baby can bring gaps in your financial system to be addressed directly. New parents often feel they need ways to provide financial security for their growing families, including buying the best online term plans. With so many competitions and attention being paid to you and your finances, buying a term insurance can fall off the list.

When you are ready to put this puzzle piece in place for your financial plan, here are the top things you should know as you get started.

Why New Parents Need to Buy a Life Insurance?

While buying life insurance may feel frustrating, it really is not. Or, at least, it doesn't have to be hard. The process has seen excellent improvements and adjustments in recent years.

Child Care is Expensive

The cost of raising one child up to the age of 18 in a low-income family is Rs.1,69,86,355.44. This figure takes into account basics such as housing, food, education and daycare, and the cost of raising children tends to increase over the years. Remember, this number can vary greatly depending on where you live and how much your lifestyle costs or not.

This is where covering life insurance is most important. It can help ensure that your partner can take care of the children financially when you are gone. In exchange for your monthly term life insurance premiums, the life insurance company pays the death benefit (the amount of life insurance you have bought) your beneficiaries or beneficiaries can use to help cover their costs.

Future Education or Higher Studies

We have already mentioned how expensive it can be to raise a child up to the age of 18. However, the daily expense of food and shelter does not end when your child leaves high school. If you plan to pay for your child's higher education, you should cover the cost of college when you buy life insurance.

Don’t have Adequate Coverage

Employee life insurance, also known as group health insurance, is a great employee benefit. However, it can leave parents feeling insecure and unable to access information when changing jobs.

Most policies provided by an employer only provide 1 or 2 temporary coverage on your annual salary. You can usually buy a lot of coverage if you want, but "at a group rate." This means that you usually do not benefit from the prices you can get as a young, healthy parent as you would benefit from an individual life insurance policy.

Life Insurance is Affordable

With the living costs going up year after year, you may think you cannot afford to buy a life insurance. Think again. Among any other expenses, life insurance policies are less expensive than most people realize. And if you shop while you are young and healthy, you can lock in at a lower rate. That means, if you buy a life insurance plan at an early age, you will have to pay lower premiums. The premiums go up as your age increases due to the associated health risks.

How much Life Insurance Coverage you should Opt for?

Life insurance is a personal financial product. Therefore, every family needs a different and clear amount to cover their expenses and needs. Factors such as your health, income, debt, outgoings and living expenses affect how much insurance is right for you.

As a parent, you have to calculate the entire cost that your family may need if you happen to pass away. Take inflation into consideration while figuring out the life insurance cover amount as your life goals will also evolve with changing stages of life.

Read more on how much life insurance cover do you need.

How to Choose a Nominee for your Life Insurance when you become a Parent?

When naming your life insurance beneficiaries, most parents often refer to each other as the main beneficiaries. However, it is also important for parents to have a mutually beneficial argument in case something happens to both of them. A dependent beneficiary is a beneficiary who receives a benefit only if the principal beneficiary dies or is not available.

We do not encourage the naming of a minor as an heir. Although children can be called beneficiaries, they cannot collect death benefits if they are under "age". If the minor is called a beneficiary, the court will appoint a custodian, which can be time-consuming and prevent your child and guardians from receiving funds after your death.

Read all about how to choose a nominee for a life insurance plan.

Best Life Insurance Plans for New Parents to Consider

Becoming a parent brings in all the more reason in your life to be financially secured. You have a responsibility that needs you to be on your toes all the time. Finding and choosing the right life insurance plan is just the beginning or you can say – is the first step that you can take to protect your child’s future.

There are various life insurance plans that you may buy, here are a few life insurance plans by Canara HSBC Life Insurance for your consideration:

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.