Is It Necessary For Senior Citizens To Purchase Term Insurance?

Term insurance is a type of plan that serves as an income backup plan following the death of the life assured, allowing the family and dependents to survive financially difficult times. Though it is preferable to get insurance when you are younger, buying one when you are older has its own set of advantages, which will be described further below. A term insurance policy is a pure protection policy that functions as an income replacement after the death of the family's primary earner. Experts advise that you obtain a term insurance plan when you are young. However, after you reach the age of 60, purchasing a term insurance policy makes little sense. Although you may be shocked, let us explore some of the data that would warrant obtaining a senior citizen term insurance plan.

Is It Necessary For Senior Citizens To Purchase Term Insurance?

Generally, no; nevertheless, there are several conditions in which purchasing life insurance by a senior individual makes sense. Remember that purchasing term insurance at this age will come with a hefty cost. Age makes sense as well. In addition, age acts as a barrier for employers that refuse to furnish insurance. As a result, you must use the acts as a disincentive to corporations that refuse to provide insurance. As a result, you should proceed with caution while purchasing term insurance at this age. When a senior individual over the age of 50 purchases a term life insurance policy, he or she receives the following advantages:

1. Financial Assistance

Term insurance for older persons serves as a source of income for the life assured's dependents. Term insurance assists in covering the costs of basic necessities. This enables dependents to meet their financial obligations even in the absence of a life insurance policy.

2. Loans And Debts

If the life guaranteed has a loan to repay and dies prematurely, the family will be in serious financial trouble. Term insurance policies can protect a family from such issues. The family will be able to repay the debt using the proceeds from the term insurance policy.

3. Medical Assistance

The expense of medical assistance during a major sickness is rising in tandem with the advancement of medical knowledge. As a result, a retired person may find it difficult to afford such costly therapies. Term insurance helps to alleviate this burden to a certain extent, allowing the insured to get financial assistance in the event of major medical problems.

4. Retirement

Most people retire between the ages of 55 and 60. After retirement, a significant portion of the monetary inflows abruptly ceases. This unexpected drop in income may have an impact on the family's financial status. The term insurance allows the retired life guaranteed to get a consistent income even after retirement, allowing the family to live comfortably.

Take Away

Though it is commonly recommended that term life insurance be purchased at a young age, purchasing a term life insurance policy at an older age offers its own set of advantages. A term insurance policy not only provides financial assistance in difficult circumstances, but it also provides significant peace of mind to the life assured by ensuring that their loved ones would be financially secure if they pass away. A 60-year-old individual can only serve for this amount of time. A married guy in his 50s, on the other hand, will have to pay Rs 34,529 for the same plan's Rs 1 crore life insurance. Premium prices for 30-year and 40-year married males are Rs 7617 and Rs 13792, respectively, for the same plan. So, consider before you act. Only choose a term plan if it is unavoidable and there are no other options.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.