Life today is full of roles and responsibilities and its fast-paced nature has made it unpredictable too. In today’s world it is always good to carry a back-up plan for all your needs and duties. Term life insurance for senior citizens is one such tool that will help you ensure your loved ones are adequately cared for even when you are not around. Old age brings with itself several ailments that are expensive to treat and care for. Term Life Insurance for Senior Citizens is a plan being offered by various insurance companies, specifically for people who are aged 60 and above. At first, insurance companies were not so keen in offering insurance to people who had already hit the senior citizen mark. But, these companies have increasingly started to realize that this older segment is actually the one with substantial funds to pay for insurance schemes.
Term Life Insurance is the most primitive form of insurance wherein an individual is provided coverage until the term of the policy. If the insured person loses his/her life during the term, the beneficiaries get the insurance amount. Term life insurance is an important financial tool for anyone who has dependents to support or any other financial liability that needs repayment.
Senior citizens opt for term life insurance so as to leave amounts for their children or to cover any debts that they might be carrying or to ensure full coverage of their funeral expenses so that they aren’t a burden for anyone after their demise.
Why opt for Term Life Insurance for Senior Citizens?
Term Life Insurance for Senior Citizens is growing in popularity for various reasons, some of which are listed below –
- If you are aged above 50 and have never availed a life insurance policy in your life, then you can go for one now.
- The policy ensures monetary benefit for your spouse who might be left alone to fend for herself/himself in case you are not around
- You can leave a substantial sum of money for your children as inheritance that is bequeathed
- Debts if any, can be paid through the sum received via term life insurance
- Some people prefer not to burden their loved ones with spends like funeral expenses, and want to pay for it even when they are not there
- To compensate for property taxes and legal fees that the property you leave behind will attract
Features of Term Life Insurance for Senior Citizens:
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It is always good to know the pluses and minuses pertaining to a policy before deciding on it. There are several points about term life insurance for seniors that should be considered before availing this plan from an insurance provider.
- In case the insured person dies within 2 years of commencement of the policy, the nominee stands to receive 125% of the sum insured. This clause holds true for most of the term life insurance policies for senior citizens
- In case of the insured person’s death after 2 years of policy commencement, the sum insured will be paid to the nominee in case all the premiums are paid fully
- Term life insurance for senior citizens has different age brackets depending upon different insurance providers. For example, some insurers have it for 50 years and above, up to 80 years; others may have it for people aged between 60-80 years
- Premiums, like for all other policies, depend upon the sum insured that you are looking at and the time frame you want to opt for
- Smokers and non-smokers are expected different premium payments. Also, wellness record is taken into consideration by many companies before they provide insurance
IDBI Termsurance Seniors Insurance Plan
This term life insurance plan from IDBI is aimed to make senior citizens free of any financial worries that they might have regarding their loved ones and their associated financial liabilities. This scheme from IDBI helps people up to 85 years of age to buy insurance and that too without any medical check-ups. The sum insured has been restricted to Rs.5 lakhs and the benefit is limited to 125% of the sum insured in case the insured person dies within 2 years of commencement of the policy. The policy can be availed for different terms and sum insured and depends upon the age and the premium that the insured is ready to pay.
Despite all the positives associated with term insurance for senior citizens, there is one major catch of higher premium payment. Hence, these policies have slightly higher premiums as compared to the regular term life insurance plans. Since, these policies are comparatively costlier, it becomes absolutely necessary to research well and compare all the available policy options before settling for one. Generally, the best way is to find out about all the available options and then weigh them in terms of lowest cost and maximum benefit so that the policy comes at an affordable rate.
Compare Term Life Insurance Policies at BankBazaar.com
Muddled with all the insurance policy options that are open to you and with all the incessant agent calls that you have been receiving? Disconnect your phone and relax, just login to BankBazaar.com and compare a host of term life insurance policies in order to choose the most affordable and profitable policy for you and your family.
Simply browse to the term life insurance menu and select your age, smoking habits and employment type. Click the submit button and you will be taken to a page that displays all the available term life insurance options which you can read through, compare and then choose. You also get to know the very intrinsic details about your term life insurance plan like Maximum Maturity Age, Claim Settlement Ratio and premium for new buyers etc.
Adjustable sum assured panel will let you adjust the sum to suit your pocket in terms of the premium that you are capable of paying. The tool calculates the premium based on the input sum insured and lists down highlights pertaining to a particular term insurance plan.
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