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Protect Your Parents with Term Insurance: A Guide For Indian Families

Life is full of uncertainty. In case of your untimely demise, your family is left with not just emotional turmoil, but also financial difficulties. It becomes a tough situation especially for your parents. However, you can gift them at least financial protection with a term life insurance. It offers a lump sum amount in case the life insured dies during the tenure. Read More

 

The sum assured helps your parents meet daily expenses, service a loan or debt, or pay medical expenses. Since term insurance is for pure life cover, it is lower in price than other insurance plans. If the life insured lives after the term of the policy, nothing is paid out. However, the peace of mind such plans offer is priceless. Considering this, many people in India buy term insurance for parents to provide financial security to the family in the unfortunate case of death of the primary breadwinner. Read Less

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 27th June 2025
Modified on: 30th June 2025
Reading Time: 15 Mins
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Benefits of Term Insurance For Parents


Getting term insurance for parents offers important financial protection. The key benefit is monetary assistance in case of your death during the policy term. Besides this, you can buy a plan in the name of one parent and nominate the other. Thus, you can protect your parent during difficult situation. This money can help cover monthly bills, outstanding home loans, education fees, or other essential expenses, providing financial security during a difficult time.Another benefit is affordability. Term insurance plans generally offer higher coverage at lower premiums compared to other types of life insurance plans. This ensures it is accessible to a broader audience.


You can also get tax benefits. The money you pay for premiums may reduce your taxable income under Section 80C under the old tax regime. Also, the amount received by your parents is usually tax-free under Section 10(10D).


You can add extra protection with riders. These include critical illness, accidental death, or disability cover.


Why Sum Assured is an Important Factor When it Comes to Term Insurance?


The sum assured is the amount of money the nominee gets if the sum insured dies during the policy term. Picking the right sum assured is very important. It decides how much help your dependent(s) will get during tough times.


  • If your parents have debts, like a home loan or personal loan, choosing an adequate sum assured will help them manage these obligations in case of your untimely death.. This way, the burden of repayment will not fall on the family after your death.
  • If your parents are dependent on you for financial needs, your untimely demise may cause them additional trouble. The coverage amount will help them manage the suddenly arrived long and short expenses.
  • Also, there are future needs to think about. A good sum assured can support your siblings’ education, family weddings, or medical treatments. It’s also smart to think about rising prices. Inflation can make things costly in the future, so the sum assured should be high enough to keep up.

You can use an online term insurance calculator to find the right sum assured. It will help you check what premium you need to pay based on the coverage amount. Choosing the right sum assured gives full protection to your loved ones.


Why Should You Get Term Insurance For Your Parents?


There are many strong reasons to prefer to buy term insurance for parents.


  • If you or your parents have taken a loan, and you are responsible for its repayment, a term insurance for parents becomes crucial. In case of your demise, the amount can help them clear the debt.
  • Healthcare is another big factor to consider. As parents grow older, medical bills go up. With a term plan, you can add riders that cover illnesses and hospital costs. This way, your parents don’t have to worry about their health expenses.
  • Another benefit is peace and independence. If one parent dies, the other may feel insecure. A term plan helps the surviving parent live with dignity. They don’t need to depend on others for money.

How Much Coverage Do They Need?


Before determining the proper coverage amount, you must assess what your parents require both now and in the future. Educate yourself about the terms of their loans, monthly expenses, and medical requirements. Take into account both rising prices as well as family expenses. Adding riders may provide coverage for hospital treatment expenses as well as at-home medical care .


The right term plan will help your parents manage everything easily without depending on others. Always compare a few options and read the fine print before you decide.


Parents' Health Status


When buying a term plan, your parents’ health matters a lot. Here’s what you need to check:


  • Medical History: Assess any past or existing illnesses.
  • Medical Tests: Most insurers will ask for your basic tests.
  • Riders: Choose add-ons like critical illness or disability based on health status.
  • Pre-existing Conditions: Declare everything honestly to avoid claim rejection.
  • Coverage Type: Check if the plan supports regular income payouts or lump sum.

Summary


  • Financial Security: Gives your parents a secure future.
  • Debt-Free Life: Helps clear any dues left behind.
  • Affordable: Low premium for large coverage.
  • Customized Plans: Choose riders as per health.
  • Peace of Mind: Assures a worry-free life for your parents.

If you haven’t already preferred to buy a term insurance for parents, now is a good time. Compare plans, read their features, and buy what fits your needs best.


FAQs on Term Insurance for Parents


Can I take term insurance for my parents?


You can buy term insurance plans for your parents. This plan gives financial support to your parents in the unfortunate event of the death of the sum insured. It helps cover their unpaid loans or other costs. A term plan gives peace of mind, knowing that your parents will have financial support when they need it the most.


Who cannot buy term insurance?


There are certain conditions under which someone cannot buy term insurance. Usually, people above the age of 65 may not be allowed or may have to pay a very high premium. Some plans may also not be available to people with serious health problems. Every insurance company has its own rules. So, it’s important to check the age and health limits before applying. Sharing complete health details is important to avoid any issues later during the claim process.


Can parents be nominees for term insurance?


Yes, you can name your parents as nominees in your term insurance plan. A nominee is the person who will get the money if the insured person passes away. If you are the insured, and you choose your parent as the nominee, they will receive the benefit amount. This helps them stay financially strong. You can also choose other family members, but parents are the most common and trusted nominees.


What is the best age to buy term insurance?


It is wise to purchase term insurance when you are in your youth. If you buy it young, the premium will be low, and you will have the most coverage for the money you spend. Typically, when you are young, you are healthy and not an issue for the insurance company to give your health approval. Further, it allows you to begin planning for the future at an early stage. Generally, life insurance is better purchased in your 20s or 30s.


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*Above illustration is for Bajaj Allianz Life eTouch II - A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN:116N198V01) considering Male aged 25years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 5,092. 2nd Year onwards premium Rs. 5,520. Total Premium Rs. 1,65,172 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 40, Income Payout Percentage: 60). Income payout instalment opted for 40 years | Premium shown above is inclusive of Online Discount only, no other discounts have been considered and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.

##Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

**5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. 5% Discount for salaried customers, applicable only on first year’s premium. 6% Discount on online purchase is available for regular premium payment and limited premium payment frequency on first year's premium.

$Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium means total of all the premiums paid under the base product, excluding any extra premium and taxes, if collected explicitly.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

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Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


Term Insurance Guide

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Many people may opt for a term insurance policy to secure their family’s financial future in their absence.

Term insurance plans are the essence of life insurance. They provide the basic protection against the risk of premature demise.

A term insurance policy is a life insurance plan which is intended to cover the risk of premature death or demise of the life assured, during the policy tenure

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Disclaimer

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

X
Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

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Disclaimer

%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

X
Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


Disclaimers:
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Tax benefits as per prevailing Section 80C (under old tax regime) and Section 10(10D) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy

BJAZ-WP-ECNF-15796/25

X
Disclaimer

*Above illustration is for Bajaj Allianz Life eTouch II - A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN:116N198V01) considering Male aged 25years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 5,092. 2nd Year onwards premium Rs. 5,520. Total Premium Rs. 1,65,172 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 40, Income Payout Percentage: 60). Income payout instalment opted for 40 years | Premium shown above is inclusive of Online Discount only, no other discounts have been considered and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.

##Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

**5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. 5% Discount for salaried customers, applicable only on first year’s premium. 6% Discount on online purchase is available for regular premium payment and limited premium payment frequency on first year's premium.

$Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium means total of all the premiums paid under the base product, excluding any extra premium and taxes, if collected explicitly.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

X
Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

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