Why New Parents Should Buy Term Life Insurance?

You want to provide for your children as a parent. You probably have a plan in place for how you'll pay for their clothes, food, school, and other necessities. It's also crucial to have a plan in place in case something unforeseen happens to you and your family, resulting in a loss of income. If you're a parent, you should consider purchasing term life insurance to protect and care for your family in the case of your untimely death. The following article mentions more points that will convince you to buy a term insurance plan for your baby as soon as possible. 

Why Should New Parents Buy Term Life Insurance?

Here are some of the arguments which support purchasing a term insurance plan by new parents. 

• Future Higher Education

  Raising a child up to the age of 18 can be quite costly.  The daily cost of food and shelter, on the other hand, does not disappear when your child graduates from high school. If you intend to pay for your child's further education, you should include college costs in your life insurance policy.

• Insufficient Coverage

  Employee life insurance, often known as group health insurance, is a fantastic perk for employees. However, when people change professions, they won't be able to access this facility. Moreover, most employer-provided policies only provide 1 or 2 months of temporary coverage based on your annual pay. Sometimes, even the prices you may receive as a young, healthy person are usually not as good as you would get from an individual life insurance policy. Hence, a personalized term plan can help solve all of these problems.

• Expensive Child Care

  Depending on where you reside and how much your lifestyle costs or not, the cost of parenting children tends to rise over time. A good term  life insurance is crucial at this point. It can assist your partner in providing financial support for the children after your death. The life insurance insurance company pays the death benefit, the amount of life insurance you have purchased to your beneficiary or beneficiaries in exchange for your monthly term life insurance premiums.

• Affordable

  You may believe that you cannot afford life insurance due to rising living costs year after year. However, l ife insurance premiums, like any other expense, are less expensive than most people assume. You can also lock in a reduced rate if you purchase a plan while you are young and healthy. That means that if you acquire a life insurance policy when you're young, you'll pay lesser rates since the health concerns lead to a rise in premiums as you get older.

Take Away

Term life insurance may be more important to you as a parent than any other investment you make for your child during these early days. Although no one can predict the future, having a policy in place can ensure that their basic needs, such as education, medical care, housing, and overall well-being, would be fulfilled on a regular basis.

Also read: 

How Long Should You Have Your Term Insurance Policy For?

Difference Between ELSS Or EPF

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.