Benefits Of Buying Term Insurance Plan For Senior Citizens In India

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Benefits of Buying Term Insurance Plan for Senior Citizens in India

Term Insurance Quote
  • 20th Jun 2022
  • 5,752

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Term insurance is a policy, which is designed to offer complete protection to your loved ones. The policy will also provide peace of mind by ensuring that your aging parents will be well looked after in the future. Buying term insurance for senior citizens is essential. It will ensure that your loved ones are taken care of even in your absence.

Moreover, the life insurance policies for senior citizens have many added benefits too. This type of life insurance can be very useful when it comes to the needs of elderly people and couples. It gives them a feeling of care and protection, while making them feel financially independent and mentally secure.

When we put light on the importance of life insurance for senior citizens in India, it highlights that even in your absence, the term insurance for senior citizens will have them covered and protect your family from landing into financial trouble in case of an emergency. Additionally, and most importantly, term insurance for senior citizens gives you peace of mind by providing surety that your ageing parents will be taken care of in the future and in your absence.

What is a term insurance policy?

Term insurance is a type of insurance which will provide coverage for a particular period. In case of death of the insured during the policy tenure, he will receive a death benefit, and if he survives the tenure, he will not receive anything. The idea behind an online term plan is to provide for the well-being of the policyholder’s family if an untoward incident was to occur.

Why is term insurance for senior citizens important?

Parents are the most important part of our lives. Taking care of their needs and requirements is a duty. When you choose to get term insurance for senior citizens, you are not only ensuring that your spouse will be taken care of but also that they will be comfortable, free, and independent.

In addition to this, term insurance for senior citizens is also important because the benefit received from these policies helps manage debts, loans, medical expenses, etc.

What are the Benefits of term insurance for senior citizens?

If you are a senior citizen, listed below are the reasons why you should avail of a term insurance policy.

1. Children might be dependent on you

In many cases, children are financially dependent on their parents for their expenses. When you buy term insurance, you give them the financial freedom to take care of themselves until they start earning particularly when you are not around.

2. Independence for the spouse

Term insurance for senior citizens can provide complete independence to your spouse during your absence. It can act as a source of income for the spouse. If you are a man and have a wife who is dependent on you, things could become financially difficult for her. Hence, term insurance will give her a sense of respect when you are no longer around.

3. Leave behind a legacy

When you are no longer there to look after your family, you can leave behind a legacy. It is nothing but a wish to help loved ones and ensure that they remember you in difficult times. In case of an unfortunate event, the insurer will provide your dear ones with a lump sum to take care of their financial requirements.

4. Take care of debt and loans

Imagine a scenario wherein you are the only earning member of the family and have taken a loan. Due to an unfortunate incident, the burden of repaying the loan comes on your family in your absence. This situation could leave your family members in a pile of debt. However, with an online term plan, the family members can pay off the loan with the sum assured they receive as the death benefit.

How to select the right life insurance for senior citizens in India?

Selecting the right life insurance for senior citizens in India can be a difficult and time taking task, given the huge number of policies that are available in the market. However, it is advised that you must take ample time and explore the market before opting for term insurance for senior citizens.

Here are some important steps that you must follow to select the right term insurance for senior citizens:

  • Identify your purpose and goal of opting for a senior citizen life insurance policy.
  • Explore the market and compare what it has to offer.
  • Make a note of the pros and cons of the top senior citizen life insurance policy identified by you.
  • Keep in mind the need and requirements of your parents before buying a term plan for senior citizens.

Top features of life insurance for senior citizens in India

Let’s have a look at some of the key features of a good term plan for senior citizens:

  • Offers a regular payout ensuring financial independence.
  • A good senior citizen insurance policies offer a wide range of income options based on the financial need of the policy buyer.
  • Offer flexibility to choose payout frequency (Monthly, Quarterly, half-yearly, yearly).
  • The average entry age of senior citizen insurance plans in India is between 45 years to 55 years, as the plan is specifically designed to serve the policyholder in old age.
  • The tax benefit on life insurance for senior citizens in India is one of the key features that you must consider while buying the policy.

Buying the best term insurance plan for senior citizens in India will ensure that you feel honored and do not worry about the financial future of your family. In addition, with a term insurance policy, you can avail income tax benefit under Section 80C of the Income Tax Act, 1961. Term plan can also provide a source of funds for death expenses, medical expenses, funeral expenses, and payment of loans. Therefore, a term plan is the best investment you can make. It will ensure the financial security and safety of the most important people in your life. Compare available options, check term insurance quote, and choose a plan that is suitable as per your needs in terms of your age, finances, and health condition.

- A Consumer Education Initiative series by Kotak Life

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