Term Insurance For Senior Citizens

Term life insurance is the most basic type of insurance, in which an individual is covered for the duration of the policy. The beneficiaries receive the insurance money if the insured person dies within the period. Term life insurance is a crucial financial instrument for anyone with dependents or other financial obligations that must be paid.

Senior citizens can buy term life insurance since insurance firms have started offering term plans for the age ranges. At first, insurance companies were hesitant to extend coverage to persons who had already reached retirement age. However, they have begun to recognise that the older population has good financial means to pay for insurance plans.

What are Term Plans For Senior Citizens?

There are various aspects of term life insurance for seniors that should be examined before purchasing a policy from an insurance company. Term life insurance for senior citizens is available in a variety of age brackets, depending on the insurer. Some insurers, for example, offer it to persons aged 50 and up to 80 years old; others may offer it to people aged 60 to 80 years old. Premiums, like those for other insurance, are determined by the amount insured and the time period selected. Many organisations evaluate health data when deciding whether or not to offer an insurance policy.

Why Should Senior Citizens Buy Term Insurance Plans?

The term insurance policy provides financial assistance to your spouse after your death.  Moreover, as an inheritance, you can leave a sizable amount for your children. If there are any debts, the money acquired from term life insurance can be used to pay them off. If you don't want to burden your loved ones with funeral costs, they can pay for them through death benefits.  Moreover, these death benefits can be used to cover the cost of any property taxes or legal fees that the property you're leaving behind may incur.

Read more: Can Senior Citizens Buy Term Insurance?    

 Best Online Term Insurance For Senior Citizens

Most term insurance plans are only available for people between the ages of 25 and 60 years. However, if you're a senior citizen, here are five of the best term life insurance products to choose from. 

• HDFC Life Click2Protect 3D Plus

The plan promises to cover the three Ds: Death, Disability, and Disease. The lump-sum payout option offers six alternatives, and the lump amount with the monthly income option has three options. The plan also includes a provision that waives future premiums if the life assured is permanently incapacitated due to an accident. The lowest age to enter is 18 years old, while the maximum age is 65. The maturity age has been raised to 75 years old. The premium can be paid in annual, bi-annual, quarterly and monthly instalments. 

• Bharti Axa Life Flexi Term

This term life insurance plan offers three payout options: lump payment, monthly income, and a combination of lump sum and monthly income. The minimum age for getting a plan is 18 years old, and the maximum age is 65 years old. Under this concept, the maximum age at maturity is set at 85 years.  Annual, semi-annual, quarterly, and monthly premium payment options are available. The plan comes with a rider called Bharti Axa Life Accidental Death Benefit Rider. In the event of the life assured's death due to an accident, the rider pays the entire sum assured.

• Aegon Life Term Insurance 

There are two death benefit payout options available with this term life insurance policy. The first option is a lump-sum payment in the event of the life assured's death. In the second option, 50% of the sum assured is paid immediately following the life assured's death, while the remaining 3% is paid monthly. This plan's minimum and maximum entry ages are 20 and 65 years, respectively. The premium can be paid once a year, twice a year, or once a month.

Endnotes 

All of the term insurance plans mentioned above have a maximum age of 65 years and a maturity age of 85 years. This enables senior folks to obtain term life insurance even if they have never done so before. As previously stated, these policies also provide several advantages.

Also read: How Do I Get Best Life Insurance Quotes for Senior Citizens?

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.