Why is term insurance important for Senior Citizens?
Term life insurance works for a fixed period allowing individuals to ensure financial protection for their family during unexpected events such as death. Since it provides several features for the policyholder, one should know more about them in detail. However, it is impossible to buy a policy after a certain age, and many people, especially senior citizens, may face difficulties due to various restrictions.
So, does buying a term insurance policy make sense for senior citizens? Although the answer is no, having a term policy will provide several advantages only in certain instances. Let us take the example of a senior citizen named Prakash Sharma, who is above 60 years old. He has two children and wanted to provide a good education for them. On the other hand, his financial conditions are not good because he has some unpaid debts. He is also going to retire in a year from his job. How can he manage his expenses and liabilities now? There is no option available for him except a term plan as he can’t take fresh loans from banks due to his age and unpaid debts.
Why should senior citizens opt for term insurance plans?
Here we listed out the 6 reasons why should senior citizens opt for term insurance plans:-
- Helps Supplement Income
- Allows senior citizens to pay off their debts and liabilities
- Supports Dependents
- Rider Benefits
- Enables senior citizens to get financial stability
- Rising Inflation
1. Helps Supplement Income
Life is unpredictable today, and no one can predict when death strikes in a person’s life. Therefore, senior citizens should ensure that they provide enough protection for their families when they are not around. Moreover, they should develop a contingency plan which works well for their children and spouse in their absence to manage the loss of income to a large extent.
2. Allows senior citizens to pay off their debts and liabilities
Debts and liabilities can cause a burden to senior citizens. Apart from that, unpaid debts will create troubles for their family when they pass away. Having term insurance helps a family to repay the debts in the absence of a senior citizen. It is also suitable for reducing the family’s burden when it comes to funeral expenses and other things.
3. Supports Dependents
If the children and the spouse are mainly dependent on the income of a senior person, then buying term insurance will result in more advantages. Besides that, it helps a family to live an independent life.
4. Rider Benefits
Many insurance providers offer rider benefits for senior citizens such as accidental death coverage, critical illness cover, and permanent disability cover. All of them help a lot to protect a senior citizen from financial loss and other problems.
5. Enables senior citizens to get financial stability
Financial stability is necessary for a senior citizen’s family because it helps them plan life in the future. Buying term insurance plans make a senior citizen lower the financial burden caused by marriage, education, and unpaid debts.
6. Rising Inflation
Rising inflation can lead to high expenses, and managing them may become difficult for senior citizens. Hence, they should buy term insurance to overcome them with ease that gives ways to lead a comfortable life.
5 Things to consider while buying term insurance for senior citizens
1. Age
Senior citizens willing to purchase a new term life plan should know the maximum age in detail for making the right decision. For example, while the maximum age for buying a plan is 60, some companies offer plans exclusively for elderly persons who are above 60. In addition, the age limit may vary from one company to another company, and customers should know about them investing money.
2. Premium Rates
It is wise to check the premium rates while buying term insurance for senior citizens. This, in turn, gives ways to select a plan at affordable rates. In addition, older people should consider comparing the premium prices online to help them buy the right one that suits the requirements and budgets of a person.
3. Medical Tests
A senior citizen should undergo medical tests when buying a term plan. At the same time, some companies ask only for medical history due to aging and other factors. Therefore, it is imperative to check whether a medical history is essential or not before choosing a term life insurance plan.
4. Sum Assured
Senior citizens should check the sum assured amount with more attention because it may vary from one insurance company and another company in the markets. Also, they will determine the premium rates, and customers can pick a plan based on their needs.
5. Terms and Conditions
A senior citizen should consider reading terms & conditions correctly when buying a plan which paves to claim amounts without any hassles. He/she shouldn’t sign the papers immediately without reading them. Apart from that, they give ways to minimize disputes and other problems significantly.
Is it possible to buy term plans online?
Customers can buy term insurance online because it is more convenient and saves time. There is no need to submit documents when purchasing a plan online. A term insurance calculator is available for those who want to determine the premium amount accuracy. However, they should provide some essential details during the calculation process.
Finding the best insurance term plans for senior citizens
Many insurance firms offer term life insurance for seniors at affordable rates. At the same time, it is wise to know the best plans offered by companies in detail that will help gain more advantages. Reading reviews of insurance providers is helpful because they allow customers to find the topmost companies with ease.
The bottom line is a term plan for senior citizens reaps enormous benefits. It even gives ways to ensure more security in life during the absence of the insured person. In addition, the plan helps to reduce the burden of debts and liabilities. Children and spouse can also meet their financial aspirations and needs with a term plan.
