Why It Makes Sense For A Mother To Have A Term Insurance Plan

She is the embodiment of the many-handed Durga. In ages past, women stayed at home to take care of their families and children. But now things have changed. One more feather has added to her cap- of being an earner. While, on one hand, she is conquering professional battles, on the other, she is looking after the needs of a child to ensure a bright future for him/her. In short, she is shouldering her husband’s responsibility for taking care of the family. Today, be it a non-celeb mom or a celebrity mother is gearing up to enhance her child’s future and secure it from all odds.

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With this change in trend, now the onus of providing a secure financial future is not (or should not) only her husband’s job. In short, “why should men have all the responsibilities”? Moreover, when ‘two’ incomes work together towards fulfilling ‘one’ common goal – here it means, securing their child’s future financially – things become easy. They would be able to provide good education along with giving all the means for the overall personality development of a child.

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Let’s have a look at the child’s expenses which you, as a mother, are already facing. As per the age of your child, you are already incurring the following expenses.

Term insurance plans:

Regular Expenses Amount (in Rs.)

College Expenses

Annual Amount (in Rs.)Marriage ExpensesTotal Amount (in Rs.)
School FeesRs 40,000-Rs 50,000 (Yearly)

Depends on: – (a) stream of education (medicine, engineering, economics, etc.) (b) Which college (a local city college, an IIT or IIM, foreign university, etc.) (c) Location (India or abroad)

Rs 5,00,000-20,00,000

Depends on socio-economic class you belong to

Rs 15,00,000-20,00,000

Coaching and Tuition FeesRs 2,000-5,000 (Monthly)
Extracurricular activity feesRs 3,000-5,000 (Monthly

The inflation devil has made the situation worse. For instance, a medical degree that costs Rs 10 lakhs today may cost Rs 48 lakhs after 20 years. As a mother, you might have already started prioritizing your financial planning today to ensure your child grows up to get the best of everything. And for that, you might have already started investing for your child in some way— be it mutual funds, SIPs, PPF, fixed deposit, or gold.

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But is investing enough to secure your child’s future? Your investment will help your kid only if you keep investing in them but what if you are not there to invest? While you are planning for your child’s future, considering that you will always be there to support him/her, but have you ever thought – what will happen if you are not there? Or worse, if you are there, but not able to support your kids’ dreams financially? Your child still needs to have a secure future.

How to secure your child’s future financially?

You can’t put your kid’s future at stake, will you? So, take steps to ensure that any eventuality doesn’t make the child fall short of funds. And for that precisely, you need a term insurance policy.

What is a term insurance plan?

It is a policy that makes payment in case of the death of the policyholder. Moreover, there are term insurance policies that come handy in case the policyholder doesn’t die but suffers from an accidental disability or a critical ailment like cancer, heart attack, etc. Given the rise in the cases of critical ailments, especially cancer, among women, it makes complete sense to go for this policy to secure your child’s future.

Why it makes sense for a woman to have a term insurance plan?

To ensure your death or accidents do not derail your child’s financial planning, it is important to have a term insurance plan. Term insurance ensures that even if you are not around or there is an accidental disability, your child’s goals are not compromised at all.

If anything were to happen to you, your term insurance cover will be sufficient to cover all the expenses related to your child till he/she becomes financially independent. It also ensures that your partner doesn’t have to go through any financial hardships in raising a child all alone. 

How to buy term insurance?

Though you can buy term insurance policies, both online and offline, considering the benefits offered by online mode, it is apt to say, ‘online is more effective and money-saving option’. Thanks to the internet, you can compare and find the right coverage for yourself, depending on the expenses, and pay premiums from the comfort of your home. You can increase or decrease your cover as per your child’s education and other expenses.

How much this cost?

A term insurance plan is the cheapest life cover option available in the market. For instance, a 30-year old woman needs to pay only Rs 5,701 per annum to get Rs 50 lakhs coverage for a term of 30 years. Moreover, in most cases, it costs 30% cheaper for a woman than a man. The prices can be reduced further by buying term insurance online. As there is no involvement of an agent, the insurer saves on policy administration and issuance costs which are then further passed on to a policyholder in the form of cheaper premium rates. In addition, there’s no running around, and you can buy the policy from the comfort of your home also.

Conclusion: As they say, the future destiny of a child is always the work of the mother, secure it from all hardships. Buy online term insurance now and give assurance of financial security to your child.

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