Financial obligations and responsibilities keep you occupied even as you grow older. But, while retirement and old age should be associated with exploring the world or a favourite hobby, it should never pose financial stress. Well, ensuring financial security to your family is a moral obligation at a younger age. It is no different at an older age too!
As a primary responsibility, you have to ascertain financial security for your family in case of your unexpected demise. And, if you didn't get the opportunity to plan and invest in financial products during your employment phase, you can always start doing it when you become a senior citizen as well! Yes, a senior citizen can always purchase a term policy. Let us understand how to gather a better idea!
What is a Term Insurance Plan?
A term insurance policy is a pure life insurance plan that provides a sum assured to your nominee in case of your unexpected death during the policy term. It is one of the most affordable life insurance plans that provide an apt sum assured. It is flexible as you can customise the plan based on personal financial needs.
Can Senior Citizens Purchase Term Plans?
Traditional term life insurance plans have been subject to changes to accommodate the financial obligations of different individuals. Thus, insurance providers have flexible options that allow senior citizens to purchase term plans and reap the apt benefits for their families as desired.
The policy at TATA AIA provides different options to invest in term plans, the Life, Life Plus, Life Income, and the Credit Protect options:
- The Life option is the traditional term plan with death and no maturity benefits.
- The Life Plus option provides the death benefit in your demise and provides a refund of the premium paid if you survive the policy term.
- The Credit Protect option will provide a sum assured, in line with the outstanding loan according to the loan interest rate you have provided.
Pointers to Focus
While term insurance plans for senior citizens are a good option; you must focus on certain pointers.
- The premium for term plans is more than the premium for younger people. It is because insurers cover the risk of death associated with age and related illnesses that are bound to occur.
- There may be many inclusions and exclusions as part of the term plans for senior citizens. Be aware of such factors and invest in ascertaining claim approval later for the benefit of your nominees.
- Read the terms and conditions of the senior citizen term insurance plan, take the necessary advice from the customer executive team, and make a smart decision by analyzing the different plans and the available flexible options for maximum benefits.
- Make a financial plan and derive an approximate sum assured to fulfil your family commitments and purchase the term plan to comfortably help your family accommodate the obligations.
Why Do Insurers Consider Term Insurance Beneficial for Senior Citizens?
Term insurance for senior citizens is considered one of the investment tools for the following reasons:
- If your spouse and parents are dependent on your income for their survival, you can secure their future finances by your life coverage until you reach 100 years of age with certain plan options. So, your loved ones will not be a burden to any other family member in case of your unexpected death.
And, if you have children, siblings, etc. dependent on your income for their day-to-day needs, they will not suffer in your absence. It will be an effective source of income to handle their routine expenses.
- It will help your family repay your debts or unpaid loans in your absence on time. It will help your family reduce financial stress in the long term.
- Today's digital world has made ways to help you purchase the online term plan. Therefore, as a senior citizen, you can be at the comfort of your house and access the term plans online, and choose the best. You can provide the necessary details, upload the documents, and apply online for the term plan. The online premium calculator will assist you in determining the premium based on the sum assured and the policy term.
- It is a matter of pride and self-confidence that you have secured your family, and you will be at peace. It will eliminate the financial risk and help you lead a satisfying life. It is a valuable legacy to leave behind!
- You can also avail of the tax* deduction and exemption benefits at an older age which makes a significant difference. The premium paid on term plans qualifies for tax* deduction under Section 80C and exemption on the payout under Section 10(10D) as per the Income Tax laws. Also, if you have purchased the health riders# additionally, you qualify for an additional tax* deduction under Section 80D.
Term insurance plans have been issued traditionally and recommended for purchase to the younger generation considering the affordable rate and the sum assured to secure their family in the future. However, securing the family's financial future is a responsibility for the senior citizens as well. Therefore, insurers have tried to customise the plan to offer term plans to senior citizens for maximum protection! You can access the different term insurance plan options online, navigate through the features, analyse the benefits and choose the suitable plan based on your financial needs!