Term Insurance For Senior Citizens
Most people tend to overlook term life insurance. However, they are one of the most cost-effective insurance options available for individuals. It helps you protect your family from financial stress in the event of your unfortunate demise and gives them financial benefits that help them carry on and achieve their life goals.
A term insurance policy is not something that is useful only during your early years. In fact, it can be an indispensable tool during the latter part of your life as well. Moreover, with the average life expectancy increasing consistently across the country and the world, it makes more sense for older citizens to plan for term insurance.
Continue reading if you are interested in getting to know everything about term insurance for senior citizens.
What is term insurance?
Also known as term life insurance, a term insurance is one of the most affordable type of life insurance plan. It is, in essence, a pure protection plan. When you opt for a term insurance policy from an insurance company, you will be required to make periodic and regular payments known as premiums. In addition, in exchange for the term insurance premiums, the insurer will provide you with a life cover for a certain predetermined period known as the policy tenure.
In the event of your demise during the policy tenure, the insurer is obligated to pay out a certain predetermined amount of money to your nominees or beneficiaries. This sum of money is commonly known as the death benefit. A term insurance policy is a very cost-effective option when compared to other types of life insurance policies.
Why should senior citizens invest in term insurance?
Now that you know what term insurance is, let us look at some of the reasons why it is important for senior citizens to invest in a term life insurance plan.
1. It can help cover the loss of income
Not all senior citizens would want to retire once they reach 60 or 65 years of age. Some of them might just wish to work for a longer period, while others might be compelled to do so due to their financial situation. Whatever the reason may be, if a senior citizen prefers to work beyond their retirement age, it is necessary for him to purchase good term policy. It would help his family deal with the loss of income, which is likely to arise because of his untimely demise.
2. It can help meet healthcare expenses
Our health inevitably deteriorates as we age. This might give rise to ailments and diseases, which in turn would increase the healthcare expenses. With a term life insurance, senior citizens can manage their healthcare and medical expenses in a far better manner. This is possible because while term plans offer death benefits, most of them also come with the option to add-on riders at nominal extra cost.
These riders offer the policyholder certain extra benefits in addition to the policy’s base death benefit sum assured. Riders that include disability benefits and critical illness benefits pay out a certain sum of money in the event where the policyholder is temporarily or permanently disabled or is diagnosed with a critical illness like cancer. The sum assured offered by these riders can then be used by senior citizens to meet their medical and health expenses.
3. It can help meet any unpaid financial obligations
Loans and other financial obligations with long tenures can lead to the repayment of the loan spilling over and beyond the age of 60. In such cases, the burden of repayment would fall entirely on the individual’s surviving family if the said individual faces an untimely demise. However, term insurance for senior citizens can help avert this situation since the surviving family members can simply make use of the death benefit proceeds from the policy to settle all their unpaid financial obligations.
Benefits of having term insurance during retirement
In addition to the above reasons, there are also other additional benefits that individuals over the age of 65 get to enjoy by opting for term insurance. Here is a quick look at some of them.
Step 1. It can help you take care of your dependent children
Many senior citizens over the age of 65 tend to still have children that are either wholly or partially dependent on them for their needs. If a senior citizen faces a premature death, it can derail his dependent children’s life goals, since they may not be in a position to be financially independent. However, with a term insurance plan, the death benefit that they stand to gain can be used to further their life’s goals without any hassles.
Step 2. It can help make your spouse financially independent
The likelihood of senior citizens having a financially dependent spouse is quite high. In such a case, a premature death can leave the spouse in a tight spot without any source of income. The death benefit from a term insurance policy can help such spouses stay financially independent.
Steps to buy term insurance in your old age
Most term insurance plans have a cap on the entry age. For instance, while some limit the age of entry to 55 years, others limit it to 65 years. With such limits, it might be hard to get a term insurance for senior citizens. In addition to that, the amount of premium would be higher if an individual were to get one late in their life.
That said, a good way to circumvent this restriction would be to opt for a term life insurance plan early on in life with a long coverage period. Many term plans come with a longer coverage period, for instance, up to 75 years of age or so. That is not all; you could also opt for whole life term plans that offer coverage up to 99 years of age.
Here are some steps that you can follow to buy term insurance -
Step 1. Simply visit your insurance service provider’s website.
Step 2. Browse through their term insurance product line-up and choose the one that fits your needs and requirements.
Step 3. Ensure that you select a long coverage
Step 4. Once you have done that, make the payment.
Step 5. Upon issuance of the Policy, you will receive a copy of the insurance policy document via email.
As you have seen above, it is clear that there are certain advantages of opting for term insurance even when you have reached your retirement age. In order to keep the premiums lower and enjoy the benefits start right from a young age, always make sure that you opt for a good term insurance policy early on in your life so that you can live a worry free live and enjoy your retirement.
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