Life is short and unpredictable. Financial stability is the need of the hour and everyone thinks for the same. Life insurance policy for senior citizens can provide financial stability and peace of mind. This is one of the cost-effective ways of securing your future. It is pretty easy to buy a term insurance plan for the youngsters, but what about the term insurance for senior citizens? The people who are above 50 years can buy the term insurance plan.
There are several other plans too which the senior citizens can buy. They can buy any plan according to their financial needs. As the age increases, insecurity of health and finance both increases proportionally. To make them feel protected, senior citizens must buy a life insurance policy.
A rapid increase in life expectancy is seen thereby increasing the population of elderly people. Once the age increases, elderly people find themselves helpless. If they will have a good financial hold, they can feel secured and happy. Mental security is also much needed in the later stage.
Read Also: 10 Reasons Why You Need a Term Life Insurance?
Why do senior citizens need a life insurance policy?
Reasons supporting the statement are many but one of the prime and obvious reasons is the financial requirements by which they can help themselves and their family too. After a certain age, the inflow of money decreases, and the expenses increase. For the very same reason, it is good to save for your old age.
Term insurance for senior citizens helps in getting a bulk amount after maturity of the plan. It may happen sometimes that the senior member of the family dies suddenly. In this situation, the spouse and the children and their dependant members might suffer financial scarcity.
This period or the situation is quite difficult to survive. Therefore, to avoid such situations and tensions, the life insurance policy for senior citizens is essential. It might help you in saving as well as it is a source of income at the time of maturity.
#1: The children become financially strong
Term insurance for senior citizens will help give a strong financial background to you and your children. As people are starting their family at an older age, this delays their children’s education and marriage.
At the same time, these policies work and give a boost to the finance.
#2: Clearing off debts
The term plans if purchased on time will help in clearing off debts like the home loan, education loan, or even a car loan. These loans are taken to live a comfort-oriented life but these usually are the long-termed loans. And if something unfortunate happens and the policyholder dies accidentally, the term plan comes to the rescue.
#3: Financial shoulder to the spouse
Spouse is the dependent person in your life who can need money at any point in life to meet different requirements. Term insurance for senior citizens will protect your spouse against any odds.
He or she can become financially independent and will have a regular cash-flow even after the demise of the policyholder.
Term Insurance for senior citizen
The term insurance for senior citizens is the same as it is given to younger people, though premiums may vary. It is purely a protection plan in which if the policyholder dies at a certain age then the nominee and the family members get the benefits as an income. This helps them to meet their short term and long term financial needs.
Earlier it was seen that the term life insurance plan was given only to the younger people but things have changed now and the senior citizens can also buy term insurance plans and in an easy-going manner. The coverage of term insurance for senior citizens is up to the age of 70 or 75 years.
Benefits of buying term insurance for senior citizens
#1: A higher insured benefit is there if the plan is for senior citizens.
#2: Usually, free annual medical-checkups are available for senior citizens.
#3: The person buying the term insurance for senior citizen gets the tax deductions on the premium paid.
#4: It is common to have pre and post-hospitalization cashless, which eases off the complication of hospitalization to a much extent.
#5: The settlement as per the terms and conditions in the plan is quite easy and hassle-free.
#6: Some plans are such that it has different payout options. As and when required, the payout can be made according to your suitability.
#7: This term insurance for senior citizens provide a great sense of relief in the long term.
How to choose the right term insurance for senior citizens?
Life insurance or the term plans are one of those important decisions which require thorough grilling and research. It will be a good thing to take the advice of the experts before choosing any life insurance plan especially in the case of senior citizens.
The medical history of the person who is to be insured plays an important role. That decides how much premium will be there before maturity and is it feasible to go ahead with the plan. It is better to move ahead with the health insurance plan if the person is suffering from any critical or chronic illness.
Due to the advancement of digital platforms, comparing each plan is easy and quick. Compare each plan with patience and come out with a smart decision.
Age is also a deciding factor in purchasing any senior citizen plan. Cashless schemes are also there with many insurance companies and it will be great to choose those plans with cashless hospitalization. Tax saving is also one of the chief motives behind purchasing such senior citizen plans but it would not be a smart decision. Take the plan with maximum benefits and hence lead a stress-free life.
Each and every decision in life shall be taken with utmost caution. This will help in attaining good results. Term insurance for senior citizens is also of the same kind. Take the right term plan and enjoy your second innings with peace.