Reasons Term Insurance Is A Must For Senior Citizens
Published On Dec 08, 2021 8:00 PM By InsuranceDekho
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A term insurance policy is a pure risk protection plan that covers the policyholder's life against death. A death benefit will be paid to the nominee if the policyholder dies unexpectedly during the policy term. This payout can help the policyholder's family meet both urgent and long-term financial demands by replacing the policyholder's income.
While term insurance plans were once only available to the young, life insurance companies now provide them to seniors as well. Individuals in their 50s and 60s might get a lot of these term insurance policies. Additionally, these policies cover people up to the age of 75 or even 80. Read on to learn why you should buy term insurance as a senior citizen, as well as some of the most common reasons.
Term Insurance Benefits For Senior Citizens
Debt And Loans
If someone takes out a loan and dies unexpectedly, the looming debt can have a significant impact on the family, especially if he or she was the main source of income. It's not the best way to be remembered if you leave a debt for your spouse and children to pay off. The family can pay off the loan with the money they will receive after the deceased passes away, and they will be debt-free.
Spouse Income Protection
If your spouse is financially dependent on you after you retire, you must ensure that while you are not around, your spouse maintains the same standard of life. You must select a term plan that allows you to pick how you want to receive the death benefit in order for this to happen.
Term plan gives you the option of receiving the death benefit as a lump payment, monthly income, or a combination of both. You can choose the alternative based on your financial circumstances. If you don't have any loans or debts, a monthly income choice ensures that your spouse is paid on a regular basis. If you have any loans, the lump sum payment can assist you pay them off, and the remaining funds can be used to provide monthly income for your spouse. It is an essential component to have in your term plan.
Last but not least, make sure it's included in your term plan. Because you have limited investment possibilities in your 60s, you want to save as much money as possible on taxes (you cannot invest in high-risk options).
As a result, your term plan should include tax advantages so that you can lower your tax obligations while increasing your income. As part of your policy, the amount guaranteed to your nominee should likewise be completely tax-free.
Medical Insurance Plans That Are Prohibitively Expensive
The health insurance premium for medical insurance policies is largely determined by a person's age. As a person becomes older, the cost of health insurance for seniors rises. To save money on premiums, it is therefore preferable to purchase senior citizen medical insurance early on.
Coverage for Terminal Illnesses
Illness strikes at any age, whether you are in your 30s or your 60s. Illnesses have a physical and economical impact on you. Some conditions, such as terminal sickness, can swiftly deplete your savings. You would have saved those funds for your retirement years.
You can be confident that your spouse will be able to achieve his or her objectives and demands even if you are not present by purchasing a term insurance plan for older folks.
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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.