Buy a term plan and secure your family
The moment your child enters the world, a plethora of responsibilities and expenses sinks in the lives of the parents. Apart from the ethical responsibilities of the parents of giving good values to their child, financial responsibilities are devolved in the lives of the parents.
Raising children in today’s era requires financial assistance especially considering the current cost of education in educational institutions followed by lifestyle and marital expenses.
Irrespective of the earning status of both the parents it is imperative to buy a suitable term insurance plan in the UAE to make sure that your child is protected against the strokes of uncertainties.
As parents, all of us have different goals and objectives for our child that require monetary backing. The process of financial planning begins with building up a well-versed portfolio that consists of essential risk mitigation tools to counter phases of hardships.
One of the most vital risk management tools is term insurance. If you are planning to build up a risk management portfolio to secure your child’s future against unforeseen events, it is crucial to include term insurance plans in it. Before we go ahead and explain why do we need term insurance plans as parents let us first see what are term insurance policies?
Uncertainties and unforeseen events in life do not knock on doors they just come uninformed. Very often such events have a devastating impact on the lives of your loved ones.
In order to counter these unforeseen events in life term insurance plans are quite useful. These plans are one of the most popular forms of insurance amongst the entire line of insurance products available in the market. There are several reasons that contribute to the popularity of term insurance plans such as flexibility, affordability, and the high coverage offered by them. A term insurance plan provides coverage for a fixed period which is also known as the term of the plan and can be chosen by the applicant. The term of these plans typically varies from 5 years to 30 years based on the premium and requirement of the buyer.
Term insurance plans work by providing a death benefit to the nominee of the plan in case of any event that leads to disability or untimely demise of the policyholder within the policy period. However, if the policyholder outlives the policy period there is no maturity benefit associated with term insurance plans hence the plan expires. The policyholder always has the choice to extend the policy period further by renewing the plan based on their requirement.
There are numerous benefits offered by term insurance plans in the UAE, some of the major benefits of term insurance plans are listed below-
Becoming a parent is not just a joyous moment but a moment to realize the responsibility over your shoulders once the new-born has arrived. Term insurance plans ensure that your child is secured and does not struggle for necessities when you are not around to look after them.
There are various points that reveal why term insurance plans are inevitable from the perspective of parents. Here’s a rundown-
In a Nutshell
Term insurance plans are the most vital investment that you can make as a parent in order to secure the future of your child. With the right term insurance plan in place, you are gifting your child the essential financial security that will allow them to chase their dreams and you to live a peaceful life. While buying a term insurance plan one should assess the current expenditure and the estimated future expenses to determine the correct coverage that one should go for. Term insurance plans are undoubtedly the best gift you give your child as a parent.