Should You Buy Term Insurance for Senior Citizens?
Updated On Aug 22, 2021
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A term insurance plan is like a pure protection policy and acts like an income replacement post the demise of the sole breadwinner of the family. As per the advice of the experts, it is recommended to purchase a term insurance plan at an early age. However, it does not make any sense to purchase a term insurance plan once you get over 60 years of age. Although, you may seem surprised, let us uncover some of the information that would justify purchasing a term insurance plan for senior citizens.
Scenario 1: You Do not Want Your Partner to Be Dependent
After your unfortunate demise, it is not possible to fill in the emotional void that your spouse may have to go through in your absence, however, you can certainly fill in that financial gap. In case you are a pensioner, and your partner is dependent on you for meeting their day to day expenses, then it would get extremely difficult for them to sustain themselves once a regular income source stops. If you have not thought of alternate financial arrangements, then insuring yourself with a senior citizen term insurance plan would behave like a source of income replacement for your spouse in your absence.
Scenario 2: You Need to Pay Back Loans and Unpaid Debts
Retirement is the golden year of your life when you are supposed to cherish and live your life free from any kind of worries. However, there are chances that you may have availed a car loan, housing loan or personal loan during later phase of your life. It can also happen that you may have availed for some private loans in order to renovate your home. Or maybe you need to repay some loan or money that you would have taken from your close friends or relatives during financial instability. Therefore, in case you do not wish to burden your loved ones in your absence, then make sure to purchase a term insurance plan to meet with such types of loans and other debts.
Must read: How to Choose Term Insurance Policy in 2021?
Scenario 3: You are Having Children who are Financially Dependent Upon You
It is possible that even in your old age your children may still be studying or aspiring to go for further education and may have to depend on you financially for the same. And your sudden demise can leave your dependents financially impaired. You can safeguard your children financially from this situation by buying a term insurance plan which would take care of their education and other finances even in your absence. Purchasing a senior citizen term insurance plan would be a bit on the higher end yet it would help them in leading a dignified life ahead.
Scenario 4: You are Working Even After Your Retirement
Due to some financial crunches in life you would be forced to still work hard even in your old age. You might either opt to work part time for your ex-employer or may start a startup to meet your daily expenses. While some people may be having financial problems others may prefer to work in order to get some social security and to remain active. In case life situations force you to work even after your retirement, it is only wise to consider investing in a senior citizen term plan. Also, in this manner you can fill in the income gap that can occur because of your unforeseen death.
In a Nutshell
Although the premium payable towards senior citizen term insurance plans may increase sharply because of the old age and the risks involved with it alongside other terms and conditions and exclusions, it is still considered wise to invest in a term plan in order to help your dependents lead a stress free life.
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.