For many of us, a childbirth is one of the most important milestones in our life. It is considered auspicious and there are many emotions surrounding it as well.
Protecting your child financially is very vital too. A proper financial stability will give your child the liberty to make the right choices and choose the path they aspire.
While providing for your child when there is a stable income from you and your spouse is doable, have you thought about their financial safety if something unfortunate happens and you or your loved one has to leave them behind?
A term life insurance is an answer for that. It will provide your child with financial stability even in your absence.
How does a term life insurance work?
Through a term life insurance, you can insure yourself for a fixed amount of money for a fixed term. The beneficiary, which is often a family member, will get the whole insured sum if you happen to, unfortunately, pass away during the term period.
Why is term insurance inevitable for parents?
A term life insurance is considered a must for parents. Let’s look at how a term insurance could help you, your family and children in case of a sudden demise of a family member.
- It will keep your children debt-free
People usually start to build their new home and advance in life around the birth of a child. Having a child is thus life-changing in many ways. But this could also mean more debts and liabilities.
Now, you might have a solid plan that will work out if things go well, but in life, things are often unpredictable.
If something unfortunate is to happen to you, your children might have to bear the debt and things could get tricky for them at a very young age.
But, having a term life insurance means that you have that covered even if something unfortunate happens. In this scenario, your children will get the insurance money, which could be adequate to cover the debts.
- Ensures financial stability in their life
Losing an earning family member means losing a solid part of a family’s income. In these situations, children could suffer the most. A term life insurance will help you avoid that. The insured sum they could claim after a sad demise will ensure that they can pay for the things they need, including for food and clothes, without depending on external factors.
- Protects their quality of life
Quality of life is important for children. You must have high dreams on how they should live and could have been saving for that as well. A term plan ensures that this dream of yours is kept alive, even when you are not there.
- It pays for your child’s education
Among all the term insurance benefits, this is one of the most important. It will help your child not compromise in their education, even at a stage where you can’t be there. The key is to ensure that your insured-sum is high enough for them to comfortably pay for their education if something unfortunate happens to you.
- It helps them kick-off their adulthood
Whether it’s moving to a new city for your first job or for buying that first professional laptop – parents help most of us pay for these. Your child should have the same help, even if you are not there to provide for them directly. A term life insurance can ensure that as well.
How to choose a term plan that’s best for your children?
There are plenty of resources available nowadays to analyse and compare what will work the best for you. Most of the insurance providers’ website will have tools that will help you with your research. Term insurance calculator is one of them. It helps you figure out your term insurance premium and plan according to your needs.
If you are a parent or parent-to-be and thinking about term life insurance, it’s advisable that you waste no time. Go to an insurance company’s website, figure out your desired insured sum and term insurance premium and get insured today!