In India, insurance penetration is low. As per the India Protection Quotient (IPQ) survey conducted by Max Life Insurance and Kantar IMRB, India’s IPQ is a paltry 49.
While Indian families with children have a slightly higher protection quotient with an index score of 51, only 47% of the families and individual insurance holders feel that their life cover is sufficient.
Moreover, the survey reveals some startling findings, especially about how Indian parents and families regard term insurance policies. Even though Term Insurance is the most fundamental and cheapest form of financial protection, it still lacks a significant uptake in the country, with 4 out of 5 Indians not owning a term insurance cover.
There is an urgent need for Indian parents with adolescent children to understand the real value of protecting one’s family from the uncertainties of life.
- Why Does Life Insurance Have A Low Penetration in India?
Having a comprehensive life cover, not only helps you mitigate the risks of critical illnesses, accidental death and disabilities, it also helps secure the financial future of your family and dependents.
However, most Indians buy an insufficient life cover or avoid purchasing it altogether because of several reasons. The IPQ survey revealed the following reasons:
- 25% of individuals in urban India don’t even consider Life insurance for financial investment as they have other investments
- 17% of the population doesn’t purchase due to the stigma attached to the thought of death
- 20% of Indians are intimidated by the formalities involved in buying a term and life insurance plan.
Also, many individuals and young parents do not buy life insurance because they lack awareness about the buying process or information related to insurance products that are adequately tailored to their needs and other regulations.
- Why Is Insurance Necessary for Indian Parents?
As couples graduate from being ‘husband and wife’ to the more crucial role of ‘parents’, their financial responsibilities begin to grow exponentially. This happens because bringing up children requires vast sums of money for important milestones such as education, lifestyle and marriage. Purchasing a term insurance plan is an easy solution to make sure that your child receives the best possible future, even in case of your untimely demise.
Term plans are considered pure insurance products. Even though these plans are the cheapest form of life insurance, they offer a significantly large corpus to your family for a defined period.
In case of any unforeseen situation like your demise; therefore, the term cover amount helps take care of your family’s immediate and future financial needs, ensuring their financial stability and independence.
- In What Ways Can Term Insurance Help Your Child Achieve their Dreams?
As parents, you have a moral responsibility towards the proper upbringing of your child while providing for them through all walks of life. When it comes to children; however, raising them can be an expensive affair. You have to take care of various expenses such as the cost of school tuition fees, lifestyle, higher education, wedding, etc.
With a term plan; therefore, you can easily ensure the best future for your child, even when you are not there to see them grow.
- Additional Benefits of Buying Term Insurance
- Tax Savings
Purchasing a term plan allows you to avail attractive tax benefits. You can avail tax deductions on the premium paid, up to Rs. 1.5 lakhs under the provisions of Section 80C and Section 10(10D) of the Income Tax Act, 1961.
- Affordable Premiums
Term insurance plans offer the lowest rates of premium for a significant Sum Assured and cover tenure. The earlier you purchase the plan, the lower premium you will have to pay. Also, the amount of premium payable remains the same throughout the tenure of the plan.
- Ease of Purchase
You can easily buy a term plan for yourself online. Purchasing the plan online allows you to:
- Purchase the same plan at lower premiums
- Manage your plan efficiently
- Pay your premiums hassle-free
- Seamlessly renew your policy online
- Access the policy details anytime
- Flexible Premium Payment Options
Today reputable insurers such as Max Life Insurance, allow you to choose between different premium paying options. Thus, you proceed to buy term plan online and choose a premium payment frequency as per your convenience and financial capability.
Most of these popular term plans available online enable you to pay the premium either as a single-time payment, or as regular instalments (monthly, quarterly, half-yearly, or annually).
- Protect Your Child’s Dreams with a Term Plan
The birth of your child is perhaps the greatest feeling of joy you’ve ever experienced. Giving birth to a whole new life is indeed unique. That said, being responsible for a child also ushers a new set of duties for you.
You need to ensure that your child remains healthy, receives the best possible care and affection, and can live his or her dreams fully. As a parent, therefore, you can lay a solid financial foundation for your child to build upon with a term plan. Term plan not only provides a high degree of cover but also offers you a sense of security and emotional sustenance.
To buy a term plan online, you need first to assess your existing and future financial needs, and subsequently choose a term plan that aligns with your goals. If you are still thinking, what is term insurance? Or should you purchase a term plan?; don’t delay making a choice. Get online and check out the available plans today!