All of us assume various roles at different stages of our lives. Whilst each role carries its fair share of responsibilities and joys, there is perhaps no role more important or daunting than that of a parent. As a parent, you are the primary caregiver for your child, which is why any uncertainties associated with your life and future are bound to have a bearing on your child's well-being. There is one easy solution, however: life insurance for parents.
 

What is Life Insurance For Parents?
 

Life Insurance for parents is a standard insurance policy providing life coverage to the policyholder and their beneficiary. Since life is ridden with uncertainty, it is pivotal to purchase a life insurance policy as early in life as possible. Not only does such an approach entail financial security for your family in the wake of your passing, but it also encourages financial discipline.
 

If you are a new parent or planning to welcome a child to your family in the future, then you must buy a life insurance policy at the earliest. You can check out the Tata AIA Life Insurance plans and choose the one aptly suited to your financial requirements as well as your budget. Remember to be mindful of the additional requirements of the newest member of your family as well.
 

Types of Life Insurance Policies for Parents
 

With a plethora of life insurance policies available to choose from, it can be difficult to ascertain the right insurance policy for parents. Here are the major types of life insurance policies that you can consider adding to your investment portfolio as a new parent:
 

• Term Insurance Plan: Considered to be the purest form of life insurance, a term life plan is available at feasible rates and is, thus, ideal for young people. Such a plan offers you life cover and financial security for your family. Although term plans generally do not carry a maturity benefit, you can buy a term plan with a return of premium benefit.
  
  
• Guaranteed¹ Returns Plan: Another popular life insurance product that can be an excellent life insurance policy for parents is a savings insurance plan or guaranteed¹ returns insurance plan. In addition to the life cover element, such a plan also offers a savings component by way of guaranteed¹ returns. You can use such a plan to build a fund for your child or a general emergency fund for your family.
  
  
• Unit Linked Insurance Plan: If you wish to benefit from market-linked returns, then a Unit Linked Insurance Plan or ULIP can be just the right insurance plan for you. Not only does a ULIP offer you a life cover, but it also enables you to invest in market-linked instruments and enhance your wealth. A ULIP can serve as a great life insurance plan for parents.
  
  
• Retirement Plans with Life Cover: Although childcare is an important responsibility, you must not neglect your retirement planning either. Retirement Plans or pension plans are tools through which you can build a corpus for your post-retirement life. Retirement plans offered by life insurance companies also have a life cover, making them an ideal insurance policy for parents.
  
  

Why is Life Insurance for Parents Important?

There is no dearth of reasons why life insurance for parents is an extremely essential aspect of financial planning. Here is why buying life insurance for parents is important:

 

• A new smile to cherish: The addition of a tiny human to your family is nothing short of a blessing. As wonderful as the miracle of birth and new life is, nothing, not even childcare, is free. Newborns have a whole host of expenses, ranging from basic hygiene equipment to vaccinations.
  
  
• A new future to shape: With the cost of education consistently on the rise, it is wise to choose a life insurance policy that has a savings insurance element. This way, you can enjoy a life cover as well as access to a safe instrument to build a fund for your child's education and future aspirations.
  
  
• An income stream potentially lost: If you are a single parent and the primary breadwinner of your family, then the financial stability of your entire family is directly linked to your health and financial stability. This is reason enough to opt for a life insurance policy to protect the finances of your family in the event of your passing. The loss of a steady stream of income can be incredibly crippling, particularly in addition to the loss of a family member.
  
  
• A shield against debts: If you have any debts, purchasing a life insurance plan can be your way of creating a fund to pay them back. Even if you do not have any debts now, a life insurance policy can serve as a tool to prevent you from having to resort to debt for, say, your child's higher education.
   

Life Insurance For Parents: Tips and Strategies
 

Here are some handy tips and strategies for buying life insurance for parents:
 

• Decide to buy life insurance as early as possible.
• Choose the right life insurance plan for yourself and your family.
• Select an adequate sum assured
• Consider adding the necessary life insurance riders^#.
• Add a health insurance policy to your investment portfolio.
• Engage in timely retirement planning.
   

Conclusion
 

It is critical to have an adequate life insurance policy, more so if you are a new parent or parent-to-be.

Head over to our official website and check out the Tata AIA Life Insurance Plans to buy a suitable life insurance policy for parents.


L&C/Advt/2022/Sep/2168