A term insurance plan is perfect for anyone who wants to buy a life cover for an affordable premium. Term insurance only pays any cover if the policyholder does not survive the term maturity date. This insurance plan is designed particularly to protect a family financially in case of the bread earner’s sudden death. There is a misconception that the term plan is perfect only for young people as they can get a longer term. However, the term insurance for seniors is becoming very popular these days. A 50 or 60-year-old person can buy a term plan for a duration of 25 to 30 years. Many insurance providers are offering term plans that are particularly designed for senior citizens.
Why is it important to purchase a term insurance plan for senior citizens?
There are many reasons why a senior citizen needs a term plan. If you are a senior citizen, here are the most important reasons to avail of a term plan
- Term cover will help your nominee to pay off your remaining debts
- The cover also takes care of the financial needs of your nominee
- The sum assured is often enough to help your nominee maintain the lifestyle they enjoyed when you were alive
- These days, many people keep working past the age of 60. If you do the same then you need to make sure that your family keeps getting the monthly income that you maintain right now. The term cover will help with that.
What you need to know about the term insurance plan for senior citizens
Term insurance comes with different features. Here are the ones you need to know about:
- The maximum age limit for buying a term plan for senior citizens may vary depending on the insurance providers. However, the age limit in most cases is 60 years.
- The term insurance is a life cover insurance plan. It only pays the cover if the policyholder passes away before the policy’s maturity. However, you can always buy a ‘Term Return of Premium’ plan. With it, the amount, which you had paid as premiums, is paid to your nominee when the policy tenure is over
- The amount of premium one needs to pay depends on the age of the policyholder. So, a senior citizen needs to pay a higher premium compared to a younger policyholder. The benefit still outweighs the price.
- Any respectable term insurance provider requires medical tests for all their customers before the insurance is approved. However, some insurers do not ask for medical tests. They only require your medical history.
- An important feature of any good term plan is a rider. The riders are additional covers or features that you can add to your policy to maximize the benefits.
How to purchase term plan for senior citizens online?
Buying term insurance for seniors has become quite easy these days because you can complete the entire process online. First, spend some time comparing the available term insurance plans to determine which one is perfect for you. You can then visit the insurer’s website and provide them with your personal information like identity, age, address, and contact details. After doing this, you can add an online payment method of your choice to complete the process. The policy provider will contact you within a few days to inform you if your application is approved. They will send you the necessary documents once the policy is finalized.
