Can I Buy Term Plan for My Mother?

Term Plan for Mother 

Nowadays, more and more women are becoming dependent financially and equally contributing to their household expenses. This is why term insurance plans are equally significant for mothers too. 

A term insurance plan is a pure protection plan that secures and benefits the woman in different ways. If your mother is a working woman, then it can act as a safety net for the family as she can protect her family in case of an eventuality. Moreover, term life insurance plans also provide funds to the family to pay their debts, if any, in case of an unfortunate event such as the policyholder’s premature death or any type of disability or critical illness. 

The working lifestyle of women these days is quite tough as they are balancing their lives between the office and household chores, they can likely get diagnosed with a serious illness. In such cases, a term insurance plan will protect her. While buying a term insurance plan, a common question that comes up in a buyer's mind is why buy a term plan for my mother? Let's understand this in detail for a smooth understanding: 

Why Buy Term Plan for Mother? 

• Cost-Effectiveness – A term insurance plan is one of the most pocket-friendly plans available in the market as compared to other life insurance policies. They provide high coverage at low premium rates. It is always better to buy a term plan at a young age because the risk of death is low at that time and consequently the premium rates are also low. 
• Financial Safety – By investing in a term plan for a mother, you are securing the future of your family, this plan provides financial protection to your child and your other dependents, and it also secures your family in case of your absence. Your parents, kids, a spouse can continue to live their lives comfortably without any stress of paying debts. It is a type of investment that you do today to secure your family’s future when the insured is not around them. 
• Monthly Earning – The term plan offers a monthly income for a specific time. Monthly income is provided along with the lump sum pay-out to cover the monthly household and other expenses. 
• Renewal – You can renew your term insurance plan as per certain requirements. It does involve any complex procedure to be followed. 
• Easily Available – You can buy term plans online that are simpler and more convenient than visiting the company’s branch and buying it offline. These plans can be purchased anytime, anywhere as per your convenience. All you are required to do is to keep a track of your policy status just sitting at your home. 
• Riders – Availability of riders under a term insurance plan is one of the important benefits. Riders enhance the coverage of the existing policies by paying an additional premium. 
• Discounts – Various insurers offer special or low premiums rates for women as compared to men. As per the survey, women have a higher life expectancy than men. 
• Tax Benefit – Tax benefit is available on paid premium under section 80C of Income Tax Act, 1961. The maximum exemption is Rs. 1.5 lacs. Additionally, the tax benefit received by the beneficiary/nominee of the insured is also tax-free. 

“Tax Benefit is subject to changes in tax laws. Standard T&C apply.”

How Much Term Insurance Does my Mother Need? 

The amount/coverage of term insurance that a mother needs depends on her financial requirements. You can calculate the amount of premium to be paid using a term insurance calculator. Here are the few factors you should take into consideration while deciding the right cover for your term insurance plan: 

• Financial Responsibilities – The coverage should always be enough to meet all your financial responsibilities such as paying debt or outstanding loans, etc. 
• Financial Objectives – Your goals such as the marriage of a child, child’s education, buying a house, also play a very important role in deciding the term insurance cover. 
• Age when buying the plan – Age is one of the major factors on which term insurance cover depends. As in different stages of life, the needs are different. 
• Current Yearly Income – It is another factor that plays a major role in determining the cover of term insurance. For Instance, if your yearly income is above 4 lakhs, then it is recommended to opt for a term plan that offers Rs, 1 Crore cover. 

Why Are the Premiums of Women Lower Than Men? 

As per the research and surveys performed by experts, it has been noticed that women live longer than men. This is why the low premium rates are offered to women as compared to men. In other words, if someone lives for a longer tenure, then the duration of paying the premium will also be longer. 

Moreover, health also plays a very important role while deciding the premium amount. Women lead a much healthier life than men. Some of the illnesses are more common to men at 40 years of age such as heart attack when compared to women. This indicates that women are less susceptible to diseases and death. Hence, the premium rates are lower for women. So it is better to buy a term plan for the mother at an early age. 

Wrapping It Up! 

The term plan for mother protects your loved ones against any unexpected or unfortunate event. It is suggested to all, to gift a term plan to your mother as it is providing them continuous health and peace of mind. An individual should select a term plan based on her mother’s requirements. Buy Term plan for mother as a gift that provides her financially happy and secured life.