Term insurance is commonly bought by young people who like to cover their lives at an affordable rate. Term insurance keeps getting more and more expensive as the policyholder ages. This is because the life risk also rises with age. It is not, however, unusual to see people buying term insurance at the age of 50 years. In fact, the best term insurance plan after 50 has many features and benefits. Let us learn more about this in the article below.
Reasons to Buy the Best Term Insurance Plan After 50
Here are some reasons why people buy term insurance plan after the age of 50:
- For Dependent Family Members: It is a common trend for people these days to focus on their careers and start a family later. As a result, many 50-year-olds have young children who fully depend on them. A term cover is therefore needed to ensure the policyholder’s children and other family members remain financially secured.
- For Spouse’s Wellbeing: If the policyholder had kids early on in life and they moved away to be on their own, he may have a dependent spouse who needs the financial protection of a life insurance plan. At such a time, getting the best term insurance plan after 50 is a very good idea.
- To Cover Loans: If the policyholder is nearing his retirement or his health is fragile and he still has multiple open loans to clear, he definitely needs to invest in a good term insurance cover. If something happens to him at this stage, his family can use the death benefit to clear his loans easily.
- To Save Tax: And finally, a person can save a lot of tax money by paying a term insurance premium every year. Deductions up to Rs 1.5 lacs are permitted each year under Section 80 C.
If you have any such reason do get a good term plan without any further delay. Thankfully, most of the term insurance plans in India have an entry age of 65 years. You can, therefore, find many options to choose from.
The Best Term Insurance Plan After 50
Here are some of the top term plans for you to consider when you are 50 years of age or older:
- HDFC Life Click2Protect 3D plus
- Bharti Axa Life Flexi Term
- Aviva i-Life
- IDBI i-Surance Flexi Term
- Aegon Life Term Insurance
Choose any of these and you will have the best term insurance plan after 50 with you.
Points to Remember Before You Buy the Best Term Insurance Plan After 50
Here are some important points to keep in mind before you buy a term plan at age 50:
- Premium is High: As stated, the term insurance premiums rise as the applicant’s age rises. So when you buy your term insurance cover at 50 years of age, you should be prepared to pay a higher premium than a 30-year-old man who has the same cover. This is a valid point and you cannot negotiate with the insurer to reduce the premium rates in any way.
- Health Plays a Role: In any form of life insurance, the applicant’s health plays an important role. If you are healthy and fit, your term insurance premium will be lower. If your health is not too good, you will be charged a higher premium. This happens because the insurer associates a higher risk with someone who has pre-existing illnesses or a faulty lifestyle. Unfortunately, by the age of 50, most people develop some ailments that affect their overall health. Be honest about your health conditions when buying term insurance to get proper coverage.
- Tenure is Shorter: If the term insurance plan is bought at the age of 25 years, the policyholder will get to stay covered for 50 or 60 years. But when the plan is bought at the age of 50, the coverage tenure becomes shorter. You can get the plan for perhaps 20 years or so. That is alright, as long as you get to stay covered for a suitable time and ensure protection to your loved ones.
- It Helps to Compare: Never buying a term insurance plan without comparing. Comparing helps you to locate the best plan at the best possible price. It hardly takes a few minutes to compare so go ahead and run the comparison before you finalise on a term insurance cover.
To Wrap it Up
Ideally, you should get term life insurance as early on in life as possible. But if you are unable to do so for some reason and need life insurance when you are around 50 years old, go for the best term insurance plan after 50. As mentioned above, you will find many good options to select from. Just keep the important factors in mind and choose wisely. You will then have the best plan at the best rate for sure.