Term Plan For Senior Citizens? Know Why It Is Beneficial

The term insurance policy, as a pure protection plan, provides risk coverage to the insured's family against every catastrophe. If the policyholder dies as a result of an occurrence within the policy's term, the policy's beneficiary receives a death benefit. The payment from a term plan can be used to supplement the insured family's income and assist them fulfil their short- and long-term financial needs.
While term insurance policies were once primarily targeted at younger policyholders, life insurance companies now provide term plans for seniors as well. Individuals in their 50s and 60s can obtain a variety of term insurance products. Furthermore, most term insurance plans give coverage up to the age of 75-80. To find out why senior citizens should invest in term plans, read on.

What Is The Purpose Of Term Plans For Senior Citizens?

Following are the Reasons of having term plans for senior citizens - 

1. Term insurance products offer to protect your dependents' financial future.
2. A variety of payment alternatives are available with some term insurance contracts. As a result, policyholders can select payment options based on their needs and appropriateness.
3. In the long run, the insured can build a financial buffer.
4. Assume that a person works part-time after retirement and helps towards the family's monthly wage. In that situation, they might consider acquiring senior citizen term insurance, which serves as an alternative livelihood for the family in the event of an unexpected incident.

What Are The Features Of Term Plans For Senior Citizens?

Following are the features of term plans for senior citizens -

1. Age Limit - Most term plans have an entrance age of 18 years, however the highest age at which a policy may be purchased differs from insurer to insurer. The maximum entrance age for most term insurance policies, however, is between 55 and 65 years old. Furthermore, the policy's maximum maturity age might be up to 85 years.

2. Insurance Coverage - Because a term insurance plan for older persons is just a protection plan, the policy's beneficiary receives only a death payment if the insured person passes away within the policy's term. If, on the other hand, a person purchases a TROP (Term Return of Premium Plan), the whole premium paid during the policy's term is refunded to the insured at the policy's maturity.

3. Premium Rates - Term insurance premium rates are set by the age of the insurance purchasers, despite the fact that term insurance plans are regarded as the most economical life insurance policy to acquire. As a result, if a person buys a term plan later in life, he or she will most likely have to pay a larger premium for the term insurance policy.

4. Medical Examination - When obtaining term insurance for elderly adults, the insurance buyer may be required to complete a pre-policy medical examination so that the health insurer may ensure that the policyholder has no pre-existing medical conditions. If the insured individual does not take any medical tests, he or she must give the insurer a declaration of good health. When acquiring coverage, one should not conceal any information about his or her health.

5. Riders - Rider benefits are provided under term plans for older citizens to supplement the coverage of their term insurance policies. The insurer's riders may differ from one plan to the next. By paying an additional premium for the insurance, the policyholder can acquire the add-on rider.

Endnotes

Indians are noted for their strong attachment to their families. We may not get out of our children and continue to be responsible for their well-being even as we grow older. However, one's personal future and financial stability may be jeopardised in the process. It is, however, still not too late to make plans for the future. Even if you are 60 years old, you may get a life insurance policy to protect yourself and your loved ones. This is possible with term insurance, which is one of the most affordable and straightforward types of life insurance.

Also read- Mistakes You Should Avoid While Choosing An Investment Plan In India

Why Should I Purchase Life Insurance During Coronavirus Pandemic?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.