Term Insurance for the Sandwich Generation - Key to Securing the Entire Family

India is seeing a surge of people who identify themselves as the “sandwich generation”. The sandwich generation mostly includes middle-aged working-class individuals who are financially responsible for both their parents as well as their own children. As the name suggests, they are sandwiched between two generations that are nearly completely dependent on their income. For those in sandwich generation, there is a complete lack of financial security for their loved ones. Since both their elderly parents and young children are dependent on them, the sandwich generation struggles with savings and long-term wealth growth. Moreover, if their income were to stop for any reason, the resultant financial stress would hurt three whole generations of the family. 

But that does not mean that peace-of-mind is out of reach! For those in the sandwich generation, term insurance can be an indispensable tool to secure both sides of their family. Term insurance provide a significant life cover amount to your loved ones in case of your untimely passing. This life cover sum will help your parents sustain their lifestyle while also providing a financial buffer for your spouse and children. Moreover, some term plans even come with additional cover for your child, ensuring that they can fulfil their dreams even in your absence. Let’s go through some of the key ways in which term insurance can help secure the sandwich generation.  

Always Provide for Your Parents 

If you have elderly parents who depend on you, then term insurance can be a lifesaver for them in the absence of your income. The life cover amount can help your parents: 

• Maintain their standard of living by acting as a substitute for pension. In fact, some term plans even allow you to opt for deferred payouts instead of one single lumpsum. Deferred payouts can act as a source of regular income for your retired parents, allowing them to take care of their needs on a month-to-month basis.  

• Medical expenses are a common problem for the elderly. The life cover payout can help your parents pay for any unforeseen medical treatments in the future.  

• If you parents have any outstanding debt, the life cover amount can help them pay off their dues and live their retirement with complete peace-of-mind.  

• The life cover lumpsum can also be used to pay for caregiving expenses in case your elderly parents require support from house-helpers or nurses to live comfortably.  

Be There for Your Child, Always 

Every parent worries about their child’s future. Higher education is becoming more and more expense each passing day. As a parent, it is your responsibility to ensure that your child’s dream career is made a reality. Saving money and passively growing your wealth is crucial to fulfilling your child’s dream. However, if you pass away before your child becomes independent, their future career goals can be greatly hampered due to financial constraints. This is where term insurance can be a lifesaver.  

• Term plans can not only secure your family’s future but also help you save more money in the present. Term insurance premiums are quite affordable, and more importantly, premiums paid towards insurance are subject to tax benefit under both Section 80C and Section 10(10D) of the Income Tax Act, 1961. Using a term plan, you can secure your family while saving more money by utilizing all the tax benefits available to you. And more savings means that you can invest more money into wealth growth instruments.  

• You can secure your family’s future milestones with the help of term insurance. Higher-education, marriage, and home ownership are all important milestones that your child will aspire towards as they grow older. Term insurance enables your child to fulfil these milestones even in your absence. The life cover amount will help them financially prepare for their goals, essentially protecting their dreams from future uncertainty.  

• The life cover amount can also be reinvested to further promote wealth growth. This allows your loved ones to create a corpus of generational wealth, allowing them to live a financially stable life even with growing inflation rates.  

• Some term plans also offer additional child cover to help your little one secure their dreams. For example, Edelweiss Life - Zindagi Protect Plus offers the Child’s Future Protect Benefit, an optional benefit that offers an additional sum assured alongside your basic life cover amount. This additional sum assured will be paid out to your child’s guardian in the event of your untimely death. The extra cover amount is valid until your child turns 25 years old. With this additional sum, you child will be able to achieve their goals without any financial constraints!  

Other Benefits of Term Insurance 

Term insurance offers numerous other benefits alongside the basic life cover amount. These additional benefits provide further peace-of-mind for those in the sandwich generation.  

• Long-Term Protection: term insurance plans allow you to choose a policy term that is suitable for your financial needs. If your dependants can start earning for themselves within a decade, then you can just opt for a 10-year policy term. Or alternatively, you can get a policy that is valid until you’re 100 years old, essentially protecting your family for the rest of your life. Moreover, you can also choose to pay off your premiums early with a limited premium payment scheme. This allows you to enjoy the benefits of long-term insurance without having to worry about making regular premium payments.  

• Riders Cover for Other Eventualities: Term insurance plans also come with some optional riders that can enhance the scope of your coverage. Critical illnesses or accidents can severely affect your income generation capabilities. Life cover is only paid out in case of your death, so under a basic term plan, you have no protection against other debilitating conditions that prevent you from earning regular income.  

This is where riders become indispensable. The critical illness rider offers an additional sum assured if you are diagnosed with any of the covered medical conditions. On the other hand, an accidental total and permanent disability rider will financially compensate your family if you are disabled and unable to work due to an accident. Riders help you secure your family against eventualities that are simply not covered by the basic death benefit.  

Conclusion 

Whether you want to secure your parents, your children, or both, term insurance can be an essential instrument for your financial stability. The sandwich generation takes on the tremendous responsibility of securing their entire family. If you are part of the sandwich generation, you are an integral member of your family, and your loved ones will be completely vulnerable if they lose your income. Don’t let uncertainty strain your family’s future, secure yourself with term insurance to ensure their prosperity irrespective of what happens to you!