image title

Can Senior Citizens Buy a Term Insurance Plan?

Janhavi Shinde Janhavi Shinde 10 January 2019

At 60, you might wonder whether buying term insurance would be your best buy. If you aren’t sure, learn about the benefits of buying one and get busted for lifetime!

image title

Old age is the time to enjoy joys of life that you missed out while planning for your family and yourself. Being a senior citizen is that stage of life where you just sit back and enjoy the benefits of your hard earned money.

Gone are the days, where pension, retirement benefit, and fixed deposits were the only financial tools used by senior citizens for investments. As today, life insurance is one of the most sought investment tool opted by senior citizens to secure their future financial needs. Be it endowment plan, money-back plan or buying term insurance is like a cakewalk.

Senior citizens now-a-days do not want to be a burden on their loved ones. They are the ones who want to financially support their family even in their absence. So keeping in mind this need of senior citizens, the insurance companies have come up with specific insurance plans for their elderly customers, including term insurance.

The term insurance plan in earlier days was predominantly known as an income substitute tool for the income that is lost post the bread-winners demise. But now –a-days, the term insurance plans are more known for the pure financial protection it offers across different age-limits.

Term plans in earlier days were designed specifically for younger age groups where they were offered higher sum assured at a lower premium amount. The focus of the term insurance policies in earlier days was to promote the plan for younger generation and for securing the financial needs of their family. But financial security is not only the need of the families of the younger generation but also of the senior citizens.

Financial security is rather very important aspect of old age and you will be surprised to know that buying term insurance once you cross 60 is advantageous for following reasons:

  • Like every life insurance plan, the term insurance policy ensures that your loved ones i.e. your spouse or children or your beneficiaries are not left in any financial crises. Buying a term insurance policy will ensure that your spouse or your children get the monetary benefit to face any type of financial crises.

    Remember that your children might still be financially dependent on you. They might be either studying or desiring to go for higher education. During situations like these, your sudden demise would shatter them the most- both emotionally and financially.

    Buying a term insurance plan will ensure that your spouse or children are financially independent after your demise, even if you don’t have any other financial backup.

    A term insurance plan will act as a source of income to your family in your absence. In this manner, you will help your spouse or children to live in dignity and with self-respect. Buying a term plan might be an expensive affair at this age, yet would deem beneficial for your dependent children.

  • If you have certain debts or unpaid loans that you might have availed in certain circumstances in the later years of your life, then buying term insurance policy will be your best decision ever.

    It will help you to cut down on your loan amount as the death benefit received from the term insurance will take care of all the unpaid loans and debts. So, if you want your loved ones to live a financially worry-free life, then buy term insurance plan immediately

  • Buying a term insurance plan can help you leave a positive mark on the life of your family members. This is because with a term insurance, in case of eventuality, you can leave a handsome amount of money for your family and children in your absence and thereby leave behind a legacy in your best possible way.

  • Senior citizens buying a term insurance policy for themselves gives them a sense of security, pride, and self-respect not only in their own eyes but also in the eyes of their family members as they are making their future secure.

  • Senior citizens can avail income tax benefits under the Income Tax Act, 1961 by buying term insurance policies Thus above are the benefits of availing a term insurance policy by senior citizens. In today’s unpredictable world, gifting yourself a term insurance plan even at the age of 60 is the best gift as you are ensuring the safety and security of your spouse and children.

    Do Senior Citizens Qualify for a Term Insurance Online?

    There is a lot of myth associated with the eligibility of senior citizens to avail a term insurance online and the answer is: YES. Elderly customers are eligible to buy term insurance online as well as through offline channels. There are certain insurance providers that are targeting term insurance plans for people of age 50 years and more while there are few insurance providers who have term insurance plans for senior citizens up to the age of 85 years.

    Thus it is not an impossible task to find an insurance provider who offers term insurance policies to the elder customers between the age group of 50 years to 85 years. A senior citizen now at the comfort of their home can compare all types of term insurance plans online and can choose the best suitable term insurance policy for themselves.

    Here are a few things that every senior citizen must keep in mind while buying term insurance policy:

  • The premium of the term insurance plan and age are directly proportional to each other so with growing age the premium amount will also increase steeply

  • Watch closely for all the terms and conditions offered under the plan

  • The terms and conditions, exclusions in a term insurance plan will be more strict for senior citizens as compared to young customers

  • Before making any decision it is always wise to look around for term insurance plans on various online portals, the premiums offered by the online term insurance brokers and then making an informed choice of choosing the best term insurance plan that offers highest benefits

  • Carry out in-depth feature comparisons of various plans offered by insurance companies and choose the plan that strengthens your financial situation and helps you to decrease your financial dependency on others

    Thus, old age is not the end of life, it is rather the golden years of your life which you must live freely and happily. Even though age might be just a number, leading a financially secured life would definitely matter. So make sure that you are sufficiently insured to live a financially worry-free life. For this, it’s essential that you plan effectively and start early. However, if you are late, don’t worry as there are numerous plans available in the market for those who have started late. You can select the best suitable plan for yourself at the comfort of your home, get multiple quotations and plans from various insurance companies and buy the best-suited term insurance online.

Janhavi Shinde
Written by Janhavi Shinde
Right from being a Flight Attendant to a Banker and now to a Content Writer, she has tasted success in all the fields. The kinda girl who loves pets and knows how to manage difficult people and events.