Help your seniors feel protected with senior insurance policies!
Life insurance for senior citizens is extremely important to make them feel protected. The elderly population in India is rising with improved life expectancy rate. Currently, almost 95 million people in India are above the age of 60 and 8 million people are above the age of 80. Also, in the coming years, it is expected that about another 80 million will reach the age of 60.
Everybody wants to be cared for in their old age. Senior citizens tend to feel very lonely and helpless as they are not in a position to help themselves, either financially or physically. So, one of the best ways to take care of them and make them feel financially and mentally secure is to buy insurance policies for them.
Senior citizen policies are devised to offer protection to your near and dear ones; they also provide complete peace of mind to you by ensuring that your aging parents will be taken care of in the future. By offering your seniors a good insurance policy, you take the responsibility of saving your loved ones from running into financial trouble. Even in your absence, these policies will take care of your seniors financial requirements.
Why do seniors need insurance?
There are a number of reasons why seniors feel the need of insurance policies. However, the main reason is that these policies can serve as a replacement for their income to support them and their family. Because, after retirement, the inflow of money suddenly stops. Sometimes, upon the death of a senior member, the spouse and children may suffer a lot due to the lack of money. So, to avoid such financial tension, insurance policies are very important as they act as a channel for savings and an income source at the end of the policy term. Also, cash received from these policies can be used to pay off any other existing debts like outstanding loans, medical expenses etc.
Different Types of Senior Citizen Insurance Plans
There are different types of life insurance plans to help seniors avoid financial stress. All these plans for senior citizens in India normally fall under two major categories namely “Whole Life Insurance Plan” and “Term Life Insurance Plan”. Apart from these two major plans, there is another type called “Guaranteed Life Insurance Plan” for senior citizens.Term Life Insurance
Term insurance plans for seniors provide coverage for a specific period of time. When the policy period ends, coverage does too. Death benefits are paid out in the event of death during the policy period. They are pure protection plans and since they do not have any additional frills, term life policies are generally more affordable and flexible than whole life plans. You can choose the tenure, sum assured and payment frequency based on your needs. Some term policies come with renewal facilities to renew your policy for a new period when the term is over. This extends coverage even with a progression in age.
When it comes to buying term insurance plans for senior citizens, it is always advisable to spend some time and consider the quotes offered by the insurance company and compare them to choose the most appropriate plan based on affordability and coverage. Also, you need to keep in mind that some companies tend to adjust premiums for seniors after every few years which should be kept in mind when assessing costs.Whole Life Insurance
This is a comprehensive form of insurance which provides insurance coverage to the policyholder for his/ her entire life i.e. there is no fixed policy period. Upon the death of the contract holder, the insurance payout gets transferred to the designated nominees/ beneficiaries. Age is no bar when it comes to buying whole life insurance policies. These policies come with a savings component, along with the original insurance coverage. That is why whole life plans are priced higher than term insurance plans which don’t have a savings component. However, as you grow older, your premium amount comes down. Whole life policies come with many other attractive features e.g. consistent premium payments over the whole tenure of your policy, tax redemptions, cash value growth and permanent protection. With guaranteed cash value offered by these plans, you can access your cash through loans and other withdrawal options.Guaranteed Life Insurance
Under this plan, seniors can buy insurance policies no matter how old they are. These policies don’t differentiate against individuals based on their health condition. It is a good option for those who have health issues. These plans require no medical checkup;it is a no medical examination life insurance plan for seniors. These plans cover high-risk individuals who are generally not covered by other types of insurance policies.
Benefits of Senior Citizen Life Insurance Policies:
Senior citizens insurance policies come with many added benefits apart from providing financial security. The benefits of insuring seniors’ lives include:
- Seniors feel honored and don’t feel lonely and neglected in their old age, which is indeed very important to keep them healthy, both physically and mentally.
- It reduces your future financial worries. Because the insurance policy will take care of your elderly loved ones by paying for their various needs.
- Buying these policies can also help policyholders avail income tax redemption as per the Income Tax Act,1961.
- Senior citizen policies will take care seniors even in your absence without passing the burden to extended family members.
- These policies can provide a source of funds for funeral and death expenses, medical expenses and other unpaid debts such as mortgage payments, credit card bills and personal loans etc.
- They also provide social security benefits in the form of an income stream (annuity) post-retirement.
- These policies help senior citizens create a corpus of funds for their next of kin.
How To Choose The Right Senior Citizen Life Insurance Plan
Choosing the right insurance plan for the elderly is a difficult task given the number of choices and plans offered by various insurance providers. These plans are easily accessible, but how you compare the different policies and zero-in on the right plan to suit needs and budget can be tedious.
It is always important to compare the various policies offered by different companies and find out the pros and cons of each and every policy, keeping in mind that the seniors often face different and unique challenges. Some seniors might have problems finding the right policy because of their age and some others may not be covered under good policies because of poor health. So, after assessing and understanding the various needs and challenges faced by seniors along with the advantages and disadvantages of the senior insurance plans, you need to compare costs and benefits to arrive at the right choice.
Life Insurance Plans for Senior Citizens
There are a number of insurance plans designed especially for senior citizens. Mentioned below a few plans for them:
- Reliance Life Super Golden Years Term 10 Senior Citizen Plan
- LIC's New Jeevan Nidhi Plan
- Varishtha Pension Bima Yojana offered by LIC.
Key features of Reliance Life Super Golden Years Term 10 Senior Citizen Plan
- It is a systematic investment plan to secure your future.
- You can choose among eight different investment funds.
- You can switch between funds.
- It is a flexible unit-linked pension plan.
- Regular, single and top-up premium payment options are available.
- Get tax free commutation up to one third of fund value.
Key features of LIC's New Jeevan Nidhi Plan
- Offers vested benefits.
- Death benefits
- Get optional benefits under which you can get coverage on accidental deaths along with death benefit under the basic plan.
Key features of Varishtha Pension Bima Yojana
- Offers pension payments in the form of immediate annuity chosen by the pensioner.
- Offers death benefits.
How to Apply for Senior Citizen Insurance Plans?
Applying for senior citizen insurance plans is not difficult, once you finalize the policy you are going to buy.
Either you can apply online (if the service is available) or you can contact a particular insurance company for the same. Your insurance company will send representative to help you get the right policy for your loved ones.
However, there is an easy way to apply for senior insurance policies i.e. through the online portal BankBazaar which will help you compare and choose among a variety of insurance plans dedicated only for the seniors and apply accordingly based on your requirements. Applying through BankBazaar helps you compare insurance policies for senior citizens based on various parameters and apply for the chosen plan all in one place.
This helps save time, money and effort as well as lets you make informed choices by reading through reviews of those who have already availed different policies.
Is it Possible to Get Insurance Cover for Seniors Over 80?
Yes, it is possible to get insurance cover for elders even after the age of 80 years. Life insurance for senior citizens is available for different age categories viz. over 85, life insurance for seniors over 65, 65 plus life insurance plans, old age life insurance, 50 plus life insurance, life insurance for seniors over 70 etc. However, the availability of life insurance at this age depends on the state of your health.Rates For Senior Citizens Insurance Plans
The rates of senior citizen insurance policies differ depending on age. Also, factors such as health, lifestyle, family history etc. affect the rates of these policies. Seniors with healthy lifestyles can avail better coverage at lower premiums.
How Can I Get An affordable Insurance Plans for Senior Citizen?
- Taking health precautions or maintaining a healthy lifestyle: Elderly people with good health find it easier to avail insurance coverage. Healthier individuals benefit from lower premiums.
- Be a careful shopper: Shop carefully by comparing the various senior insurance policies offered by different insurance companies at different premium rates. Evaluation is very important to find the right policy at the most affordable rate. Also, think about the right face value. Higher the face value is, the more final coverage it will provide.
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- Endowment Plans
- ULIP Plans
- Money Back Policy
- Whole Life Insurance Plans
- Pension Plans
- Life Insurance for Child
- Family Life Insurance Plans
- Group Life Insurance Policies
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