A term life insurance is a pure protection plan. It replaces the income, which is lost due to any unfortunate event that might occur. With term plan, you can ensure the financial protection of your loved ones in your absence. While a term plan should be bought while you are young, senior citizens can also purchase a term plan to overcome their financial obstacles.
In fact, a term plan for senior citizen absolutely makes sense if they have any financial liability like a home loan, which is still being repaid. Moreover, there are times when senior citizens may have financial dependents like their spouse or children at an older age. In that case, it is plausible that their life savings might not suffice the needs of their dependents during that age. Hence, even if you’ve crossed 60 years of age, you should buy term insurance. There are conditions for maximum age entry, hence one would have to check and make a decision accordingly.
As a senior citizen, you can buy a term life insurance, although there are certain limitations. Every term insurance policy has specific eligibility criteria, which you should fulfill. While the minimum age to buy term insurance is 18 years, the maximum age varies between 60-65 years. However, the eligibility differs from company to company depending on its features.
Consider the following factors mentioned below before purchasing a term policy for senior citizens:
- Sum Assured
The sum assured for term insurance for senior citizens might be up to Rs. 10,00,000. Moreover, many life insurance companies might have an upper limit for the coverage.
- Premium
The premium depends on the three essential factors:
- Your current age
- Your coverage
- Your coverage tenure
NOTE: If all the factors mentioned above are high, the premium amount will eventually rise. Besides, you can pay the premium in installments or as a whole at the time of inception of the policy.
Add-on
Many insurance companies offer add-ons or riders to enhance the base term policy. As a senior citizen, you can choose from a variety of add-ons to boost your term insurance plan. Insurers usually offer add-ons like accidental death benefit, waiver of premium, critical illness cover, and so forth.
Now that you have a basic understanding of a term plan for senior citizens, we should take a look at how to buy term insurance for you, if you’re a senior citizen:
- A term plan is available online as well as offline.
- Many insurance providers might ask you to do a pre-medical test to determine your health conditions to confirm if you’re suffering from pre-medical conditions or not.
- Disclose all your details while filling a form to buy a term plan. If you hide your health-related information from your insurer, your claim might get rejected.
Conclusion:
To sum up, buying a term plan at an older age could be a difficult task. Your age will be the primary reason for an increase in the premium of a term policy. Moreover, you’ll have to undergo medical tests to prove you’re the right fit to purchase a term plan at an older age. Therefore, before finalizing a plan for your family, compare plans online and buy the plan, which is cost-effective.
