Term insurance is available to people over 70 years of age. It is also possible for senior citizens to purchase different types of insurance products based on their financial needs, such as term insurance, whole life insurance, pension plans, etc.
Choose the best term insurance for senior citizens policy for your parents and get life cover for those over 70. Most term plans have a minimum entry age of 18 years, whereas maximum entry ages vary from insurer to insurer.
The premium for term insurance for senior citizens may be more due to increased mortality risks, therefore, consider comparing various term plans and their premiums using a term plan premium calculator to find the best plan at an affordable price.
Read on to learn all about the term plan insurance for senior citizens, its importance, and its features.
Importance of Term Insurance for Senior Citizens
Senior citizens over the age of 70 should consider purchasing life insurance policies for many reasons:
- As a way to ensure that your dependents and loved ones receive inheritances after you pass away
- To provide a greater degree of financial security for relatives and dependents
- Maintaining your spouse’s financial security after you have passed away
- You can use this money to pay any unpaid property taxes or property-related obligations at your death.
- In case your family incurs expenses after your death, such as funeral expenses
- If you die with unpaid loans or other obligations, your surviving family members will not be burdened by these obligations.
- After retirement, many seniors choose to work. The loss of income resulting from the death of a senior citizen who contributes financially to the family can be compensated through senior citizen term insurance.
Senior Citizen Term Insurance – Features
Senior citizens’ term insurance plans typically include the following features:
- Age Limit
The age of entry for purchasing a term insurance policy in India is 18 years, but most life insurers allow policyholders to buy a term policy up to 70. It is also possible to extend this insurance up to age 85. The nominee will receive the sum assured if the policyholder dies before turning 85.
- Death Benefit
As term plans are pure protection plans, the insurer pays out the death benefit if the senior citizen policyholder dies during the policy term. A life insurance policy payout will be made to the named beneficiary or nominee in the policy.
- Premium Payable
As long as all policy premiums are paid, any life insurance policy benefits remain in effect until maturity. The premium amount for term plans increases as a policyholder’s age increases. In terms of life insurance, term plans are the most affordable. The online term plan calculator lets policyholders estimate senior citizen term plan premiums.
- Medical Test
An applicant for senior citizen term plans must undergo a medical exam before purchasing the plan. At the time of insurance purchase, the insurer should be aware of any pre-existing conditions, such as diabetes or cardiovascular disorders. Senior citizen’s term plan premiums are affected by the existence or absence of pre-existing conditions.
- Add-on Covers Available
Senior citizens can also add optional add-on coverage to the death benefit provided by a term policy. This enhanced coverage, however, usually comes with an additional fee. These include accidental death benefits, waivers of future premiums, and refunds of premiums.
Conclusion
To meet your life insurance needs, purchase a term insurance plan for senior citizens. Anyone between 55 and 70 can enter term plans of this type. A senior citizen term insurance policy provides a death benefit to the policyholder if they pass away during the term.
