Does It Make Sense For Senior Citizens To Purchase Term Insurance Policy?
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Term insurance plan is a kind of plan that works as an income back-up plan after the demise of the life assured so the family and dependents can live through financial hardships. Though it is advisable to buy insurance in the younger age, purchasing one in the older age too has its own benefits which will be discussed below.
Benefits Senior Citizens Get On Purchasing A Term Life Insurance Plan
When a senior citizen above the age of 50 buys a term life insurance plan gets the following benefits:
1. Financial Support
Term insurance for the senior citizens works as a mode of income for the life assured’s dependents on the life assured then term insurance helps in covering the expenses of the basic needs. This helps the dependents to live through the financial needs even in the absence of the life assured
2. Debts And Loans
If the life assured has a loan to pay and passes away in an untimely manner, then the family faces a huge financial problem. The term insurance plans can save the family from such problems. The family can repay the loan from the proceeds of the term insurance.
3. Medical Aid
With the increase in the development in medical science the cost of medical help during serious illness is also increasing. Hence a retired citizen may find it difficult to bear the cost of such expensive treatments. Term insurance helps in reducing this difficulty upto certain level so that the insure can get the emergence of financial help during serious medical issues.
4. Retirement
Most people retire at the age of 55 to 60 years. After retirement, a substantial part of the monetary inflows suddenly stops. This sudden pause of income might affect the financial situation of the family. The term insurance helps the retired life assured to receive a steady income even after retirement so that the family lives without worrying about financial hardships.
Conclude
Though it is always said that one should buy a term life insurance policy at a young age, buying a term insurance policy at an older age has its own benefits. A term insurance plan not only offers financial support in distressed times but also offers substantial peace of mind to the life assured by assuring that their loved ones will remain financially secure in case they do not remain around.
Also read - IRDA Life Insurance Claim Settlement Ratio (CSR) - Meaning, Details and Frequently Asked Questions.
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.
