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 backup plan for all your needs and duties. Term life insurance for senior citizens is one such tool that will help you ensure that your loved ones are adequately cared for even when you are not around.
Term life insurance can be availed by senior citizens as the age brackets provided by insurance companies, today, make way for such purchases. At first, insurance companies were not very keen on offering insurances to people who had already hit the senior citizen mark. But these companies have started to realise that the older segment is actually the one that has substantial funds to pay for insurance schemes.
Term life insurance is the most primitive form of insurance wherein an individual is provided coverage during the term of the policy. If the insured person loses his/her life during the term, the beneficiaries receive the insurance amount. Term life insurance is an important financial tool for anyone who has dependents or have other financial liabilities that need repayment.
Senior citizens opt for term life insurance to leave a certain amount for their children, or to cover any debts that they might carry, 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 benefits 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 an inheritance.
- Debts, if any, can be paid through the sum received via term life insurance.
- If you prefer not to burden your loved ones with spends like funeral expenses, and want to pay for it even when you are not around.
- To compensate for property taxes and legal fees that the property you leave behind might attract.
Features of Term Life Insurance for Senior Citizens:
It is always good to be aware of the pros and cons pertaining to a policy before deciding on it. There are several points about term life insurance for senior citizens that should be considered before availing the plan from an insurance provider.
- Term life insurance for senior citizens has different age brackets, depending on the 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 all other policies, depend on the sum assured that you are looking at and the time frame you want to opt for.
- Wellness record is taken into consideration by many companies before they provide an insurance policy.
Top Five Term Life Insurance Plans for Senior Citizens:
Most insurance companies offer term life insurance only for those aged around 25 years to 60 years. Here are five top term life insurance plans that you can choose from if you are a senior citizen.
IDBI iSurance Flexi Term:
The iSurance Flexi Term by IDBI Federal Life Insurance Co. Ltd. is a unique term insurance plan that offers 4 variations that you can choose from. The death benefit can be availed as a lump sum, as a regular monthly income, a combination of both, and also with all of the above plus an addition of 7.5% of the regular monthly income.
- The minimum age at entry is 18 years and maximum age is 60 years.
- The age at maturity can be a maximum of 80 years.
- The basic sum assured ranges from Rs.50 lakh to Rs.30 crore.
- The premium ranges from Rs.6,030 to Rs.12,450.
- The premium can be paid yearly, half-yearly, quarterly or monthly.
- An accidental death benefit is available wherein a pay-out is issued in the event the life assured dies due to an accident.
Bharti Axa Life Flexi Term:
This term life insurance plan comes with 3 pay-out options – lump sum, monthly income, lump sum and monthly income. The monthly income increases at a rate of 10% annually.
- The minimum and maximum age at entry are 18 years and 65 years respectively.
- The maximum age at maturity is defined as 85 years under this plan.
- The minimum sum assured is Rs.1 lakh and the maximum sum assured is subject to underwriting.
- The premium payment modes available are annual, semi-annual, quarterly and monthly.
- A rider named Bharti Axa Life Accidental Death Benefit Rider is available with the plan. The rider provides the complete sum assured in case of death of the life assured due to an accident.
Aviva i-Life insurance plan has an added benefit of rebates. The higher the sum assured, the higher the rebate on the premium. Further, female lives hold an additional 5% rebate on the premium rates.
- The minimum age at entry is 18 years and maximum age at entry is 55 years.
- The maturity age cannot be more than 70 years.
- The minimum sum assured is Rs.25 lakh and the maximum depends on the underwriting.
- The premiums can be paid yearly or half-yearly.
HDFC Life Click2Protect 3D plus:
The Click2Protect 3D Plus is an extensive term life insurance plan that promises to cover the 3 Ds - Death, Disability and Disease. It has 6 options under the lump sum pay-out option and 3 options under the lump sum plus monthly income option. The plan has an added feature wherein the future premiums are waived in case the life assured is permanently disabled due to an accident.
- The minimum age for entry is 18 years and maximum is 65 years.
- The maturity age is extended up to 75 years.
- The minimum basic sum assured is Rs.10 lakh.
- The premium can be paid annually, semi-annually, quarterly and monthly.
Aegon Life Term Insurance:
This term life insurance plan comes with two death benefit options. The first option is of a lump sum pay-out in the case of the death of the life assured. In the second option, 50% of the sum assured is paid immediately after the death of the sum assured and 3% of the sum assured is paid monthly.
- The minimum entry age for this plan happens to be 20 years and maximum is 65 years.
- The maturity age is up to 75 years.
- The minimum sum assured is Rs.10 lakh and the maximum is subject to underwriting.
- The premium can be paid yearly, half-yearly and monthly.
In all the term life insurances mentioned above, the maximum age is within 65 years and the maturity age ranges up to 85 years. This allows senior citizens to purchase a term life insurance policy even if he/she hadn’t purchased one earlier. And as established, these plans, too, come with several benefits.
Compare Term Life Insurance Policies at BankBazaar.com:
Are you 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 log in 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 will also learn the very intrinsic details about your term life insurance plan like Maximum Maturity Age, Claim Settlement Ratio, premium for new buyers, etc.
The 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 assured and lists the highlights pertaining to a particular term insurance plan.
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