Do Senior Citizens Need to Buy Term Insurance?

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It is recommended to opt for a term insurance policy as early in life as possible. However, a lot of times, that isn’t the case for many people. But did you know that there are term plans available for senior citizens, too? As an individual above the age of 60 years, you could have dependents that need to be secured with a financial backup. It is never too late to safeguard your loved ones, so, today let’s explore the perks of getting term insurance for senior citizens.

What Is Term Insurance

Term insurance is a policy that offers policyholders a pure risk cover in exchange for paying the insurance premiums regularly. In case of an untoward incident, the insurance provider shall pay out a lump sum corpus to your loved ones. Such policies are suitable for people who have dependents and want to protect their family from any financial crunches. As term insurance plans are the simplest form of insurance, you can be worry-free while purchasing one. To enjoy maximum coverage with term plans, you can also check out riders that are available at the time of purchase. It is advised to use a term plan premium calculator to better plan your insurance coverage and make the most of your investment.

Benefits of Buying Term Plan for Senior Citizens

Here are some perks of opting for a term insurance policy that you can avail as a senior citizen:

  • Enables you to secure debts

Do you have a home or personal loan to your name? In case of an unfortunate mishap, your spouse would have to bear the financial burden of repaying your loans. However, term insurance allows you to secure your loved ones from such incidents and enables you to leave a lump sum benefit behind. The insurance provider shall pay out the sum assured to your beneficiary to help clear such debts. The remaining sum can be utilised to manage their personal expenses.

  • Takes care of your dependents

As a senior citizen, you may have dependents such as your spouse or children that aren’t financially independent. To ensure they are taken care of and are self-sufficient, you can purchase a term insurance plan. With the lump sum corpus, you can enable your children to get higher education without them feeling any financial pressure. Having such a backup shall go a long way in offering you peace of mind.

  • Offers financial cushioning during retirement

In case you are nearing your retirement age or have already retired, term insurance is a good alternative to maintaining financial stability. The death benefit can be a monthly income for your spouse without having to become dependent on your children.

  • Allows you to leave a legacy

Don’t we all dream of a good life for our family? Sometimes it isn’t about securing their daily expenses or clearing debts. Term insurance also allows you to leave a legacy behind for your spouse or children. In the event of death, the lump sum payout can be utilised to fulfil any purpose. Thus, you can rest assured knowing your loved ones are taken care of and are more than self-sufficient.

With this, you must have learnt why term insurance is crucial and how it is helpful for senior citizens. If you want to secure your loved ones from any of the above-mentioned conditions, a term insurance policy is for you. However, it is recommended to compare and review various insurers before choosing a suitable one. This is because as a senior citizen, the term insurance premium might be higher and more expensive. So, choose wisely!