Term Insurance 311 views March 10, 2021

A term insurance plan works best for individuals who opt for it when they are in their 20s or 30s. As health conditions are likely to be pretty good at that stage, the premium amount remains significantly lower compared to senior citizens aged 60 years and above. That may make senior citizens believe that a term insurance plan is not for them as they need to shell out more at a time when they don’t have a regular source of income i.e. salary. The reason for the same is  – Retirement. But it’s not only the premium amount that should influence your decision. Other factors need to be looked into too.

Term Insurance

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Even after retirement, you could have dependents and liabilities to take care of. And in case you die, financial uncertainties could loom large for your dependents without a term plan! More so when they are yet to be financially empowered. So, you can use a portion of your retirement corpus to buy a term plan and ensure financial security for your loved ones.

In this article, we have depicted scenarios where term insurance plans can help senior citizens live peacefully. In case you do come across such scenarios, choosing a term plan won’t do you any harm! Let’s read and decide accordingly.

So When Do Term Insurance Plans Come in Handy for Senior Citizens?

As expressed earlier, you could have dependents and liabilities even after retirement. It is possible to have your kids struggling financially and remain dependent on you even at that stage. You may also like your better half to be financially secure in case you take the last breath before her. Let’s talk about these scenarios and see how term plans can come in handy at such times.

Your Kids Remain Far Away from Achieving Financial Independence

By the time you bid goodbye to your professional life, you expect your kids to be financially strong. But there’s no guarantee that such a thing will happen! Your kids may get jobs, but may not have the earnings to remain flexible across seasons. Things can go awry if you die and leave them. In case things do pan out this way, you will need financial protection for them by having a term insurance plan. The cover amount, if chosen carefully, will help sustain the lifestyle of your kids.

If You Want Your Spouse to be Financially Independent

Your better half remains with you till your lifetime. But post your death, things can get challenging for your spouse – emotionally, mentally and even financially. While nothing can be done about the first two, the last one is in your hands! A term insurance plan with an optimum cover amount will allay all your concerns regarding the financial security of your spouse in your absence.

Have Debts Even After Retirement? Choosing a Suitable Term Insurance Plan Won’t be Bad!

Some debts have a pretty long lifetime, such as a home loan, which can run for a maximum of 30 years. Although banks and housing finance companies (HFCs) mostly ensure the loan tenure does not exceed your retirement age, sometimes the tenure can go past the same. But in case you die before the loan payment is over, the onus of paying the debt will most likely fall on your family members. However, with a term insurance plan, you can avoid this obligation for your family members to do in your absence. They can use the cover amount to pay off the outstanding loan amount.

The Above-mentioned Scenarios Warrant a Term Insurance Plan for Senior Citizens – But How Much Will They Need to Pay to Get it?

The premium rates for term insurance plans can go up once you are into your 40s and above. Besides age, the premium amount also depends on the sum assured, policy term, gender, whether or not you consume tobacco, etc. Assuming you are a non-smoker male aged 60 years old and seek a term insurance cover of INR 1 crore over a policy term of 15 years, your monthly premium could be around INR 6,000-8,000. See how you can set aside this amount from your routine for a hassle-free life cover.

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