When we talk about term insurance policy, we mostly consider this for young people. We also consider this kind of a policy for people who have family members dependent on them. Do any of us think that even an individual who is more than 60 years old can buy this policy? Purchasing a term insurance policy can actually be sensible for a senior citizen under some specific circumstances. Let us talk about a few of them here today:
- If the children are dependent on them
Not all of us get married in our late 20s. Some tie the knots slightly late and as a result, they have their kids late as well. This ultimately results in kids being dependent on you even when you are a senior citizen. Since most of us start developing several types of diseases at such age, the chances of demise become more. Therefore, buying a term insurance plan can help the kids to carry on with their education even if they pass away.
- To make their spouse self-reliant
If you have been the sole breadwinner of the family and now your spouse is dependent on your pension, then you must buy a term insurance policy. The sum assured that they will receive after your death will help them to have an income. At least, they will not have to ask anyone else for money.
- An income after retirement
If you are working even after retirement, then also you must buy a term insurance policy. If anything happens to you within the policy term, your family will receive the sum assured which will work as an income for them.
- If there are unpaid debts
If you took a loan and still paying it off, then also it makes sense for you to opt for a term insurance policy. If you pass away all of a sudden, your family will have to take the responsibility of paying it off. Well, that will not be very fair to them, isn’t it? The sum assured they will receive on your demise can be used for paying off debts.
Term insurance for senior citizens definitely makes sense as it helps the family of the policyholder to carry on with their lifestyle even if anything happens to him/her. Nevertheless, one of the factors that you have to take care of is the premium. If you purchase a term plan after the age of 60, you will be required to pay higher premiums. Therefore, you must be prepared for that. Here are some of the companies mentioned that provide term insurance plans for senior citizens.
Max Life Insurance
Max Life Insurance provides Online Term Plan. This is an online plan that comes with a 10-year plan. The sum assured under this plan is INR 1 Crore and the premium you have to pay is INR 58,000.
Aegon Religare Life Insurance
The plan for senior citizens offered by Aegon Religare Life Insurance is iTerm. The term for this plan is 15 years and it is also an online plan. The sum assured for this plan is INR 35 lakh. The premium that has to be paid is INR 40,259.
HDFC Life offers Click 2 Protect. Like the other plans, this plan can also be bought online. The sum assured under this plan is INR 1 Crore and the premium that has to be paid is INR 76,224.
Like these three, several other term insurance plans are there for senior citizens. If you want to know more about those plans, you can visit the website of IIFL. Make sure you compare all the plans before buying one.