If you are looking for a cover against financial risks, a term insurance policy can be a suitable option for you. The coverage offered by the insurance policy covers the insured’s family against certain eventualities such as loss of income due to the death of the insured.
If such an eventuality occurs, the insurance company pays out a death benefit, which can help the family cover their daily expenses in your absence. These plans are often marketed to young people who are first starting their careers.
However, these days, term life insurance is also available to middle-aged and even senior citizens. Furthermore, many term life insurance companies also offer coverage for up to 75-80 years of age, depending on the insurer.
How Term Insurance Can Be Beneficial for Senior Citizens?
1. Supports Your Family
If you’re a senior citizen with a non-earning spouse and dependent children, then it’s important to have life insurance. If you pass away, then your family would be left with the responsibility of paying bills on their own. But with enough insurance coverage, you can ensure that they’re able to manage their day-to-day expenses.
2. Facilitate Your Income
Those who need to rely on income from jobs past the age of 60 need a good retirement plan. They also need a contingency plan in case there is a sudden loss of income to help their family members manage their expenses in their absence.
3. Repay Debts and Mortgages
It’s best to avoid leaving your family with debt if possible. Term insurance for senior citizens can be used to pay off any lingering debt that you or your family may have. It can also be used to cover other expenses such as medical and funeral costs.
Best Term Plans for Senior Citizens in India
1. Aegon Life iTerm Plus Plan
The iTerm Plus Plan is a comprehensive term insurance policy, which provides financial security in case of emergency and can also protect your family in time of need. Along with benefits such as life insurance coverage and critical illness protection, it offers other exclusive benefits through riders like the accidental death benefit.
The plan offers the option of insurance coverage until the age of 80 years and the option to gain coverage for 10 basic and 38 critical illnesses. The policy also offers a waiver of premiums in the case of permanent disability and critical illness.
Moreover, it also features under section 80C of the Income Tax Act. It even offers a discount for non-smokers and female policy buyers, and the policy’s life insurance component can be increased as per your financial requirements in the future.
2. Canara HSBC Oriental Bank Of Commerce iSelect Star Term Plan
The iSelect Star Term Plan offers flexibility and convenience to your day-to-day financial planning. This is a feature-rich term insurance policy that can save your family from unexpected financial turmoil. Not only does it offer a lump sum payout, but it also offers an attractive return of premium option while you enjoy tax benefits.
Investors can choose the type of coverage they want, and can even extend it for their entire lifetimes. The policy allows you to select from a variety of investment and payout options and create a plan that best fits the needs of you and your family.
The Canara HSBC OBC iSelect Star Term Plan is designed for people with different needs. It also comes with an option to increase your coverage by purchasing additional coverages like Accidental Death Benefit, Child Support Benefit, and so on.
3. IDBI Senior Citizen Term Insurance
Throughout life, you will encounter many uncertainties, particularly as you age. By investing in IDBI Senior Citizen Term Insurance, you can provide your family with the financial security they deserve. It is one of the best term insurances for senior citizens available in the market.
If you’re looking for insurance that covers you after 50 years of age, this policy is one of the few that doesn’t require a medical test. With this policy, you can get a maximum of 5 lakh rupees in coverage. It takes two years for this to be applicable, so if you die within those two years, 125% of the total premium paid will be returned to your nominee
The policy also offers tax deductions of up to Rs. 1.5 Lakhs under section 80C of the Income Tax Act of India. However, keep in mind that there are no maturity proceeds or return of premium benefits available in this plan.
4. LIC e-Term Plan
The LIC e-Term Plan is a comprehensive protection plan that can be purchased online in a hassle-free and straightforward way. If you are a non-smoker or female, you can get special discounts on this plan as well.
The premium for this plan is tax-exempt up to Rs.1.5 lakh per year under Section 80C of the Income Tax Act. The policy offers coverage until the age of 75 and you can choose a term between 10 and 35 years, which makes it highly preferable for senior citizens.
5. Max Life Insurance Online Term Plan Plus
This is a term plan for senior citizens, which can be purchased online easily. The plan comes with three different variants of cover options to choose from. It provides financial coverage to the family of the insured against any eventualities. With the Max Life Insurance Online Term Plan Plus, you can choose from three different kinds of protection: Basic Life Cover, Life Cover + Monthly Income, and Life Cover + Increasing Monthly Income.
6. The Takeaway
As a senior citizen, you are most likely to be among the largest financial commitments in your family. It is therefore important that you don’t put yourself at risk by not having adequate insurance cover. A term insurance policy can help you keep your family protected against several eventualities. Therefore, make sure you purchase a term plan as soon as possible.