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Business News/ Insurance / Father’s Day 2024: Why should term life insurance be every dad’s priority?
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Father’s Day 2024: Why should term life insurance be every dad’s priority?

Father's Day approaching prompts reflection on joys and responsibilities of parenthood. Planning ahead with term life insurance offers peace of mind and financial security for the family. Explore different term plans and riders to protect loved ones against uncertainties and ensure a stable future.

 Term life insurance offers a straightforward way to safeguard against uncertainties and provide comprehensive security.Premium
Term life insurance offers a straightforward way to safeguard against uncertainties and provide comprehensive security.

As Father’s Day approaches, I find myself reflecting on the joys and responsibilities of parenthood. My wife and I share a deep commitment to our family: like all parents, our hopes are to create a stable and nurturing environment where our children can dream big and achieve their goals. Our shared goal is to ensure a secure future for our family, no matter what curve ball life brings.

As parents, we strive to plan ahead for uncertainties and safeguard our children against potential financial hardships. One way to achieve this peace of mind is through term life insurance. It offers a straightforward and cost-effective means to protect our family's future, making it a cornerstone of our financial planning.

Also Read: 6 crucial ways term insurance can help working moms in financial planning

Secure your family for the cost of a dinner

A personal term insurance plan provides comprehensive financial security. Unlike company coverage, which is tied to one’s employment period, term plans can be customised to offer high sums assured for as long as 99 years. 

Purchasing these plans early ensures protection against various life risks at significantly low premiums, with some term policies offering a 1 crore sum assured for monthly premiums that cost less than a restaurant meal. Features like waiver of premium benefit provide further support in case of specified critical or accidental total permanent disability, ensuring a stress-free life for the family.

Also Read: Term Life Insurance: Why should you not buy a return-of-premium option?

Protecting yourself and loved ones with enhanced coverage

Riders or add-on coverage enhance the protection offered by term insurance. Couples can opt to include each other in their term plans, extending protection and customising coverage enhancements. These include coverage against death, critical and terminal illnesses, with as many as 50 listed illnesses including cancer and heart ailments. 

An added benefit is the ability to choose the return of premium option, under which all paid premiums are returned to the policyholder upon survival until maturity. In the unfortunate scenario where one of the parents is diagnosed with a critical illness, all future premiums are waived. 

If the term insurance includes a critical illness rider, an accelerated critical illness benefit (if term insurance with critical illness rider taken) amounting to 25% of the sum assured is paid immediately to support further treatment. 

Thus, policyholders can financially secure their family in case of loss of pay while benefiting from additional health-related covers to tide over unforeseen medical expenses.

Also Read: Beyond coverage: 4 common wellness benefits of life insurance

Choose from different term plans to mitigate various risks

Once eligibility conditions are met, parents can choose from various tailored term insurance plans to protect their families against financial liabilities like mortgages or loans. Young or soon-to-be parents should consider investing early in a term insurance plan, gradually increasing the sum assured or purchasing more plans as their family’s needs evolve. 

Moreover, those with multiple policies may consider surrendering some if premiums become burdensome or coverage needs decrease. My wife and I regularly review our insurance plans to ensure they align with our evolving financial needs and goals.

Also Read: What things do I need to consider for buying a critical illness insurance plan?

By making timely investments in term life insurance and exploring additional features and riders, we can ensure our children are well-protected against life's uncertainties. As John F Kennedy famously said, “The time to repair the roof is when the sun is shining", so act now to secure the financial stability your family deserves by opting for a suitable term life insurance plan.

 

Sameer Bansal is Chief Distribution Officer, PNB MetLife

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Published: 16 Jun 2024, 09:58 AM IST
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