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Term Insurance 7807 views December 31, 2019
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.
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Here are some reasons why people buy term insurance plan after the age of 50:
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.
Here are some of the top term plans for you to consider when you are 50 years of age or older:
Let’s discuss these plans below and see which one meets your purpose the best way.
This HDFC Term Insurance Plan comes in three variants –
The following benefits are applicable to the plan option.
Death Benefit – If the life assured dies during the policy term, the higher of the sum assured on death and 105% of total premiums paid will be payable to the nominee. In case you’ve chosen the Single Premium plan, the highest of 125% of single premium, sum assured on maturity and basic sum assured will be paid to your nominee. The highest of 10 times the annualized premium, sum assured on maturity and basic sum assured will be payable to the nominees of people choosing Regular Pay and Limited Pay options.
Maturity Benefit – This will come only when you have the Return of Premium feature to the plan. If that remains the case, the total premiums paid will be returned to you in case you survive till maturity.
The basic sum assured chosen under the option will be divided between life cover and critical illness. While life cover is set at 80% of the basic sum assured, the remaining 20% will be towards critical illness at the beginning. Critical illness sum assured will increase and life cover will decrease at each policy anniversary starting from the first policy anniversary.
Death Benefit – If the life assured dies during the policy term, the highest of Sum Assured on Death, 105% of Total Premiums Paid and Life Cover Sum Assured will be payable to your nominee. In case of single premium plans, the higher of 125% of single premium and sum assured on maturity will be paid to the nominee. The higher of 10 times the annualized premium and sum assured on maturity will be payable in case of regular pay and limited pay options upon the death of the life assured.
Maturity Benefit – This will apply only if you have the Return of Premium feature to the plan. In such a case, the total premiums paid will be returned to you in case you survive till maturity.
Critical Illness Cover – If any of the covered critical illnesses are diagnosed during the policy term, the sum assured applicable to the same will be payable.
Income Plus Option
It comes with a life cover, regular income from age 60 onward and maturity payout.
Death Benefit – The higher of Sum Assured on Death and 105% of Total Premiums Paid will be paid less than the survival benefit paid till the date of death. For single premium plans, the sum assured on death remains the highest of 125% of Single Premium, Sum Assured on Maturity and Basic Sum Assured. In case you choose either a regular pay or limited pay, the sum assured on death will be the highest of the following –
Survival Benefit – If you survive during the policy term, you will receive a survival benefit at the end of every month following the policy anniversary after 60 years of age. The survival benefit amounts to 0.1% of the basic sum assured.
Maturity Benefit – The benefit will depend on the period of the plan. If it is a fixed term plan, the sum assured on maturity up to 110% of the total premiums paid less the payment of survival benefit will be handed to you. In the case of Whole Life Plan, there are no maturity benefits.
It’s also an exciting term plan with a wide range of benefits for policyholders and their nominees. Let’s check out its benefits.
Death Benefit – If the life assured dies during the policy term, your nominee will receive a payout, which remains the highest of the following –
Now that death benefit will come in any of the three ways – Lump sum, Monthly Income and Lump sum Plus Monthly Income – that you choose at policy inception.
Lump Sum – It is defined by the name itself- the whole amount is paid to your nominee in one big sum.
Monthly Income – The monthly income is payable for 15 years and increases every year at 10%.
Lump Sum Plus Monthly Income – Here, 50% of the death benefit payout will happen in a lump sum and the remaining in monthly income for 15 years increasing at 10%.
Optional Critical Illness Benefit – The plan comes with two critical illness benefit options – Comprehensive Cover and Major Illness Cover. If you choose Comprehensive Cover, as many as 34 critical illnesses will be covered. Whereas under the Major Illness Cover, the company will pay for 15 critical illnesses.
Like the previous two term plans, Aviva i-Life Total also comes in multiple variants namely – Protect, Protect Plus, Protect Assured and Protect Income – meeting different needs of people aged above 50. Let’s talk about these variants.
Protect – This life cover variant pays 50% of the chosen sum assured variant upfront in case of a terminal illness. People with more than 50 years of age can be more susceptible to such illnesses. So, having such a bulk amount upon such an instance makes sense for people aged above 50.
Protect Plus – It will provide financial protection to the dependents of the life assured upon his/her death, besides double the coverage in case he/she dies due to an accident.
Protect Assured – It pays the nominee of the life assured in case he/she dies during the policy term. In case the life assured survives till maturity, 120% of the premiums paid till that time will be returned to him/her.
Protect Income – With this variant, you can secure the monthly income of your family in your absence at an annual increment of 5%.
This plan secures your family financially against death, terminal illness and even accidental death through the following payouts.
Lump Sum with Conversion Option – If you choose this option, a lump sum amount will be paid upon death or specified terminal medical conditions.
Fixed Monthly Income Benefit – This option ensures the payment of monthly income to your family for 15 years upon your death.
Lump Sum + Fixed Monthly Income Benefit – Your family will receive the payout in two parts upon your death – a lump sum amount and a fixed monthly income for 15 years.
Lump Sum + Increasing Monthly Income Benefit – This is much like the above-mentioned part, except that the monthly income will increase by 7.50% each year.
Here are some important points to keep in mind before you buy a term plan at age 50:
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.
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