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Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

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Can Senior Citizens Purchase Term Insurance Policy?

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:
 

  1. The Life option is the traditional term plan with death and no maturity benefits.
  2. 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.
  3. 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.
 

  1. 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.
  2. 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.
  3. 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.
  4. 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:
 

  1. 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.

  2. 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.

  3. 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.

  4. 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!

  5. 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. 
     
Conclusion
 

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!
 

L&C/Advt/2022/Nov/2724

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Disclaimers

  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility for tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch