Term Insurance Plan for Parents

Who Should Buy a Term Insurance for Parents?

6 Reasons Every Parent Need a Term Life Insurance

How to Choose the Right Term Insurance Plan for Parents?

FAQs About Term Insurance for Parents

As an Earning Adult, Can I Buy a Term Insurance for My Parents?

You can buy a term insurance for your parents provided that their age falls within the policy limitations and other policy terms. However, the premium for term insurance at an older age is much higher as compared to the younger age. 

Can I Buy Term Insurance for my Mother?

Yes. Depending on the policy terms, anyone can buy a term insurance irrespective of fact that the person is earning or not earning. However, as the age grows, the policy limitations increase. You must check the same with your insurer. 

What is the Best Time to Buy a Term Insurance for Parents?

The lesser the age, the lesser the premium. Hence, parents must buy a term insurance as soon as they start family planning. However, as an earning adult, if you are planning to buy a term plan for your parents due to any reasons, you must buy it as soon as possible because with age, not just premiums but age-related illnesses might also increase, making it difficult to buy a term plan.

What is the maximum age limit for buying term insurance for parents?

The maximum age limit for buying term insurance for parents varies with different insurers, but it is generally around 60-65 years at the time of policy initiation.

What factors affect the premium for parents' term insurance?

Premiums for parents' term insurance are influenced by several factors, including the age of the parents, sum assured, policy tenure, health status, and whether the policy includes any additional riders.

Can I include riders in my parents' term insurance plan?

Yes, you can include riders like critical illness cover, accidental death benefit, and waiver of premium in your parents' term insurance plan for a nominal extra premium, thus enhancing its coverage. 

What happens if my parents have pre-existing health conditions?

Pre-existing health conditions must be disclosed accurately at the time of policy purchase. This will avoid any hassle during the claim process. There might be exclusion or higher premium due to pre-existing conditions during the claim process.

Can my parents' term insurance policy be converted into a whole life policy?

Some term insurance policies offer a conversion option that allows the policy to be converted into a whole life policy or other permanent life insurance without the need for additional medical examinations, depending on the terms and conditions of the policy. These policies are known as convertible term plans and are offered by very few insurers.

What should I consider before buying term insurance for my parents?

Before buying term insurance for your parents, consider their current health status, financial needs, existing insurance coverage, the policy's affordability, and the insurance company's claim settlement ratio to ensure that it aligns with your objectives and their requirements.