Life insurance penetration is still dismally low in India. In as late as 2018, the penetration for life insurance was a mere 2.74%. While the life insurance industry is poised to grow in the coming years, it will be a long and arduous uphill climb.
These low penetration rates are partly on account of a lack of awareness among Indian consumers. However, with more affordable insurance plans, innovative coverage solutions and ease of accessibility online, several consumers are waking up to the benefits of life insurance policies. You, too, can be one of them.
While purchasing a life insurance policy for oneself is crucial, purchasing such a policy for one’s parents is equally important. Parents take a number of steps to financially secure their own child’s future. Children, too, once grown up, can repay them in kind by securing their financial future with life insurance. A comprehensive life insurance plan can guarantee a lifetime of security for your parents. An added bonus of investing in a life insurance policy for one’s parents is the tax benefits one can avail of.
Read on to learn about how you can secure your parents’ future by investing in life insurance, and why you should do it at the earliest.
- Financial Security: When one’s spouse passes away, great financial strain can fall on the shoulders of the widow/widower. In such cases, a life insurance policy can prove to be highly beneficial. It can provide a sum of money to help the spouse of the policyholder lead a dignified life without worry for financial security. This becomes even more crucial if one spouse is financially dependent on the income of the other. Ensuring that your parents have a life insurance policy can guarantee this financial security for them.
- Pay off all Debts: Debts tend to accumulate throughout the course of a person’s life and your parents are no exception. Be it a mortgage for your childhood home or an education loan to fund your higher education ambitions, your parents may have accumulated debt over the years and still be in the process of paying them off. In such situations, in the event of their death, the burden of paying off the debt would fall on the shoulders of the rest of your family. Thus, a life insurance plan can ensure that such debts and liabilities do not leave one’s family financially vulnerable. You can also opt for a decreasing life insurance plan, wherein one’s coverage decreases over a period of time, keeping in pace with their decreasing amount of liabilities.
- Retirement Planning: A life insurance policy can play a significant role in retirement planning for your parents. Unit-linked life insurance plans help provide a life cover while helping your parents build a large corpus for a comfortable and financially secure retired life. Their life insurance policy can be tailored according to their risk appetite and market movements to guarantee high returns. Thus, a life insurance policy can be an integral part of retirement planning for one’s parents.
- Mitigate Risk of Illness: With age, comes the increased risk of illnesses. As the immune system weakens, it is much easier to contract illnesses. Additionally, minor sicknesses can also turn into a major disease if not treated at the earliest. This is why life insurance can often be a boon for your parents. With the availability of critical illness riders, hospital and surgical care covers and terminal illness riders, one can ensure that hospitalization expenses and treatment costs are well taken of. Such riders dole out a predetermined sum of money upon diagnosis of the concerned health conditions. These riders can help ensure your parents don’t need to take out a separate insurance policy solely to cover such hefty costs.
Conclusion: A surefire way of securing your parents’ future is to purchase for them a comprehensive life insurance plan. You can purchase the
iSelect+ term plan from Canara HSBC Oriental Bank of Commerce, which provides comprehensive coverage at affordable premium rates. With several options for riders, numerous different types of coverage (including increasing, decreasing and level coverage), an assortment of payout options (lump sum payout, monthly income payouts or combinations of both) and various premium payment options, your parents can make the most of their life insurance policy.