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TERM INSURANCE

Should You Buy Term Insurance For Senior Citizens?

Janhavi Shinde Janhavi Shinde 31 October 2017
5.0 (1 votes)

Whether you agree or not a term insurance for senior citizens is the best way to get financial coverage. Read this 5 minutes article to understand why you should buy a term plan for senior citizens.

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Well someone said it right, ‘Age is a question of mind over matter. If you don’t mind, it doesn’t matter’. Even if age is just a number, having a safe and secured life is what matters the most.

This is the age you would want to reap all the benefits of the hard work you had put in since your young age. Back in those days, there were very few options for senior citizens to lead a financially secured life in the form of term insurance.

But today, with so many insurers in the market, buying a senior citizen term insurance plan has become like a cakewalk.

A Term insurance is a pure protection plan that is like an income-replacement for the bread-winner’s family post his/her demise.

Experts recommend to buy one at a younger age. But does it really make sense to buy term insurance once you cross 60 years? Though you may be surprised, let’s uncover some facts that will prove justifiable to buy term insurance for senior citizens!

Let’s explain it this way:

1. You don’t want your spouse to be dependent.

They say it is important that you be self-reliant and strong to survive in this world. While you cannot fill the emotional gap for your spouse post your demise, you can certainly fill the monetary gap.

If you are a pensioner and your wife depends on your funds to run the house, it will be very difficult for her to cope-up once the source of income stops.

If you haven’t made any other financial arrangements, having a senior citizen term insurance policy would act like a lost source of income for your spouse. She can utilize the sum assured either in monthly installments or in lump-sum to take care of her day-to-day expenses.

So, give your spouse a sense of self-respect and dignity to live her life peacefully, even when you aren’t around.

2. Your children are still dependent upon you financially

You might be the ultimate role model for your children in your presence. They might be still studying or aspiring for higher education. Which means they are financially dependent upon you. Your sudden death may leave them financially impaired. Give them the opportunity by opting for a term insurance, which will take care of their education as well as other finances when you aren’t around. Buying a senior citizen term insurance will certainly be expensive at this age, but show your children your selfless and unconditional love. Help them lead a life they deserve!

3. You still have loans and unpaid-debts piled up

Retirement is the age to cherish and live your golden-years worry free. But there may be circumstances when you might have availed for a car loan, a personal loan or a housing loan at later stages of your life. It is also quite possible that you might have availed private loans for your house renovation. Or maybe your close relative or a friend had lent you money during a financial crunch? If you do not want to burden your family members in your absence, buy a term insurance plan to take care of such major outstanding loans. Your family members can for-close the pending loans with the sum assured they receive post your demise. So, buy a senior citizen term insurance plan even if you feel it’s late to buy simply to keep your dependents worry-free financially.

4. You wish to leave behind a legacy

If you wish to leave a mark on your family members in some way or the other, term insurance is the best possible option. The idea behind leaving a legacy is nothing but the desire to be well remembered by your loved ones in their need of the hour. If anything uncertain happens to you, your beneficiaries will be eligible for a lump-sum amount with the help of your life insurance policy. So, carve your name on the souls of your family members by opting for a term insurance plan, while you peacefully wither away.

5. You are still working post your retirement

Certain financial crunches in life will force you to be on the tip of your toes even when you have crossed your age to work. You may choose to work for your ex-employer part-time as a consultant or start a small scale business to take care of your finances. While some may have monetary problems, some may prefer working to gain a social security and remain more active. If circumstances force you to work post your retirement, it does make sense to opt for a senior citizen term insurance plan. This way you can fill the income gap that may occur post your untimely demise.

Conclusion

While the premiums for term insurance for senior citizens may increase steeply with growing age risk involved along with exclusions and additional terms and conditions, it does make sense to buy one to let your dependents lead a worry-free life. However, if you wish to skip the high-premiums and secure your family members financially at an early age, do buy one when you are young. If you are keen on getting a term plan, take time to talk to people, research online and compare different policies to zero down on the best one! But, do access your requirements before you decide to opt for a term plan.

Recommended Read: When Is the Best Age to Buy a Term Insurance Plan

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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.