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Is It Necessary For Senior Persons To Have Term Insurance?

Published On Mar 14, 2022

Term insurance is a form of plan that provides income in the event of the life assured's death, allowing the family and dependents to weather financial hardship. Though it is best to obtain insurance when you are younger, purchasing one as an adult has its own set of benefits, which will be discussed further down. A term insurance policy is a pure protection policy that replaces income in the event that the family's primary breadwinner passes away.

Is Term Insurance Required for Senior Citizens?

No, in most cases; nevertheless, there are a few circumstances in which acquiring life insurance by a senior citizen makes sense. It is important to keep in mind that term insurance is expensive at this age. It also makes sense in terms of age. Furthermore, employers who refuse to provide insurance use age as a stumbling block. As a result, you will need to utilize the laws as a deterrent to businesses that refuse to provide insurance. As a result, buying term insurance at this age should be approached with prudence. When a senior citizen over the age of 50 buys a term life insurance policy, he or she gets the following benefits:

1. Financial Assistance

Term insurance for the elderly provides a source of income for the dependents of the life assured. Term insurance can help cover the costs of everyday requirements. This allows dependents to meet their financial responsibilities even if a life insurance policy is not in place.

2. Loans and Debts

The family will be in considerable financial problems if the life guaranteed has a loan to repay and dies prematurely. Term insurance coverage can help a family deal with such problems. The proceeds from the term insurance policy will allow the family to repay the loan.

3. Medical Assistance

With the improvement of medical understanding, the cost of medical assistance during a catastrophic illness is increasing. As a result, it may be difficult for a retired individual to pay for such expensive procedures. Term insurance can help to reduce some of this strain by providing financial support in the event of significant medical difficulties.

4. Retirement

Between the ages of 55 and 60, the majority of people retire. A major chunk of the monetary inflows unexpectedly ends after retirement. The family's financial situation may be impacted by a sudden loss in income. Term insurance ensures that the retired life will continue to receive a steady income after retirement, allowing the family to live comfortably.

Top 5 Term Life Insurance Plan for Senior Citizen

1. IDBI iSurance Flexi Term

The IDBI Federal Life Insurance Co. Ltd. iSurance Flexi Term is a one-of-a-kind term insurance plan with four different options. The death benefit can be received in the form of a lump payment, a regular monthly income, a mix of both, or all of the above plus 7.5 percent of the regular monthly income.

  • The minimum admission age is 18 years old, while the maximum age is 60 years old.
  • The maximum age of maturity is 80 years old.
  • The basic sum assured can be anything between Rs.50 lakh and Rs.30 crore.
  • The premiums vary between Rs.6,030 and Rs.12,450.
  • The premium can be paid once a year, twice a year, once a quarter, once a month, or once a month.
  • An accidental death benefit is provided, which pays out if the life assured dies as a result of an accident.

2. Bharti Axa Life Flexi Term

This term life insurance plan has three payout options: a lump sum payment, monthly income, or a mix of the two. The monthly income rises at a ten percent annual rate.

  • The admission age is 18 years old for men and 65 years old for women.
  • The maximum age of maturity is fixed at 85 years in this concept.
  • The minimum sum assured is Rs.1 lakh, with a maximum sum assured of Rs.1 crore, subject to underwriting.
  • Bharti Axa Life Accidental Death Benefit Rider is a rider included with the plan. In the event that the life assured is killed in an accident, the rider pays the entire sum assured.

3. Aviva i-Life

The Aviva i-Life insurance plan also includes rebates. The higher the sum assured, the greater the premium rebate. Furthermore, female lives are eligible for a 5% discount on premium rates.

  • The lowest age to enter is 18 years old, while the maximum age is 55 years old.
  • The maximum age of maturity is 70 years.
  • The minimum sum assured is Rs.25 lakh, with the maximum sum assured determined by the underwriter.
  • Premiums can be paid annually or biannually.

4. Aegon Life Term Insurance

There are two death benefit options available with this term life insurance policy. The first alternative is to get a lump sum payment in the event of the life assured's death. In the second option, 50% of the sum assured is paid immediately following the sum assured's death, while the remaining 3% is paid monthly.

  • The lowest entrance age for this plan occurs to be 20 years and maximum is 65 years.
  • It is possible to reach adulthood at the age of 75.
  • The minimum sum assured is Rs.10 lakh, with a maximum sum assured of Rs.50 lakh, subject to underwriting.
  • The premium can be paid annually, twice yearly, or monthly.

Take Away

Though it is often advised that term life insurance be obtained at a young age, buying a policy at an older age has its own set of benefits. A term insurance policy not only provides cash support in tough situations, but it also gives the life guaranteed important piece of mind by ensuring that their loved ones would be financially secure if they die. This is the maximum amount of time a 60-year-old person can serve.

Also Read: Top Five Advantages Of Using An Annuity Calculator

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.

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