Term Insurance for Senior Citizens

Term Insurance for Senior Citizens

Old age is the time when most people want to enjoy their day relaxing and doing fun activities. For most people, entering the senior citizen age bracket is to have laid back days and enjoy the benefits earned during the working days.

Many people plan for their retirement well in advance, as they do not want to be a financial burden on their children and other loved ones. At times, many senior citizens want to contribute to the financial security of their family members, even in their absence. This is where the term insurance for senior citizens plays a vital role.

Why Opt For Term Insurance for Senior Citizens?

Let us understand the need for term insurance at an old age with the following examples.

Illustration 1: Your children might be financially dependent on you

In case you decided to have children later in life, they are bound to be economically dependent on you. So, by the time you are 60 years old, your children will either be studying or starting a career. Having term insurance will ensure that they are financially secure for the future, even in your absence.

Illustration 2: You want your partner to be self-reliant

If you have a non-working spouse, ensuring their financial security in old age, in case of your absence, becomes your responsibility. That way, if anything were to happen to you, they will be financially protected with a term insurance plan.

Illustration 3: You have financial liabilities

Repaying some major debts can stretch into your retirement days as well. In case of your death, these liabilities will fall upon your loved ones. To avoid stressing your family in such a situation, it is wise to have a term insurance plan under your name. The death benefits received can be utilised to pay off any outstanding loan/debt amounts.

Features of Term Plans for Senior Citizens

The features of term insurance for senior citizens in India are no different from a basic term plan. Let’s take a look 

• The policy offers death benefits to the beneficiaries in case of your (policyholder’s) death.
• You can also buy rider benefits to enhance the coverage of your existing term insurance plan. Consider buying riders such as:

1. Critical Illness Cover
2.  Waiver of Premium Cover
3.  Accidental Death Benefit
4.  Return of Premium Cover

• The premiums paid toward term insurance plans for senior citizens can be claimed for tax deductions under Section 80C of the Income Tax Act, 1961. Also, the death benefits received by the beneficiaries are tax-free under Section 10(10D). These term insurance tax benefits help you to save money.
• The plan offers protection against several minor and major health conditions if you opt for the Critical Illness Cover.

Check On Premium Rates

Buying an insurance product at an old age can be a task. Your age makes it difficult for you to find a good term insurance plan that will fulfil your needs. Moreover, you will have to undertake a medical examination to avail the policy.

Above all this, the premiums charged for term insurance plans can be more for people above the age of 40 years old. For instance, a married individual at the age of 60 years old will have to spend a hefty amount (approx. INR 70,000) to seek INR 1 Crore term insurance coverage of 15 years. On the other hand, an individual at the age of 50 years old has to spend approx. INR 34,000 to seek INR 1 Crore term insurance coverage for 30 years.

Hence, it is highly advisable to compare plans offered by different insurers when seeking a term plan for senior citizens.

To Sum It Up!

A term insurance plan is one of the most affordable and simplest life insurance products available in the market. It can be bought at any of your life stages, as its prime purpose is to offer financial security to your loved ones.

If you are a senior citizen looking for term insurance plans, consider factors such as maximum entry age of the policy offered by the insurer, the premiums charged, the coverage provided, add-on benefits, exclusions, etc. before buying the policy.

You can then consider the term insurance plan available on Bajaj Markets, and choose a policy that best suits your needs.