Tips to Find a Term Insurance for Senior Citizens in India - 2024

As you grow older, your financial responsibilities decrease. Major expenses like buying a house get accomplished, your children start working and become financially independent, and you save up a tidy fund to live the rest of your life to the fullest. And, with this, the need for a term insurance plan starts diminishing. After all, who needs the money now?

This is where you might be wrong. There might be a possibility that you need term insurance even when you have grown older - simply because you never know when an uncertain situation may knock at your door. You may still have pending loans or liabilities, a spouse to take care of, or your loved ones might be financially dependent on you. You should take stock of your financial dependents, the assets you own, and the money you owe to figure out whether you need a term insurance plan as a senior citizen.

Let’s have a detailed look at the various facets of buying term insurance for senior citizens.

Can Senior Citizens Purchase Term Insurance?

The simple answer is - yes. You can buy a term insurance plan if you are a senior citizen. However, you should keep in mind that term insurance plans come with age restrictions. A majority of plans specify 60 to 65 years as their maximum age limit. So, if you're a senior citizen looking to purchase a term plan, make sure the policy's upper age limit for entry is higher than your actual age.

Why Should Senior Citizens Buy Term Insurance?

Let's have a look at a few scenarios to understand -

1: Your children might be financially dependent on you If you have had kids late in life, they might be financially dependent on you. By the time you are old, your children will either be pursuing their education or beginning a career. They might also have plans to get married a few years down the line. A term insurance plan will keep them financially secure and take care of education fees, moving expenses, wedding costs, and much more. You won’t have to worry about their futures - in your absence.

2: You want your partner to be independent In case of your unfortunate death, you don’t want your spouse to struggle in terms of finances when you’re not around anymore. For instance, if your spouse is not employed, they may require money for their financial goals, everyday expenses, and repaying any loans. So, having a term insurance plan will ensure their financial security in your absence. The claim amount will help your spouse to settle all the expenses without worrying about money.

3: You might have debts to settle You may have taken a home loan, vehicle loan, business loan, etc. that may stretch till you are old. In case of your sudden and unfortunate demise, the liability of repaying these loans will shift to your loved ones. And, you surely do not want them to be worried about arranging money for the same. So, investing in term insurance is a smart idea to prevent stressing out your family in such a situation. All your remaining loans or debt balances can be settled with the claim amount.

Tips To Choose the Best Term Insurance Plan For Senior Citizens

Here are a few helpful tips that you should keep in mind while buying a plan -

1. Choose An Adequate Sum Assured

Even if you are a senior citizen, you may still have pending financial responsibilities. You may have dependent kids and a spouse, debts yet to be settled, and so on. You should factor in everything you owe versus everything you own to arrive at the right cover amount. For instance, you may have a pending home loan and a dependent spouse. The sum assured you choose should be enough to pay off the remaining loan amount and take care of your spouse’s everyday expenses.

2. Select An Ideal Coverage Period

After deciding on the cover amount, the next thing you should decide is how long to buy term policy for. You need to choose the policy duration based on your savings, future expenses, financial obligations, etc.

3. Select The Right Premium Payment Term

By the time you become old, you may not be employed and have a steady income source. You will have to pay the premiums from your pension or savings. Hence, it is advisable to consider this and accordingly select a premium payment term - so you can dust off the premium paying liability without any hassle.

4. Opt For Riders

Riders are a great way to enhance your base plan coverage at a nominal extra cost. There are a plethora of riders available with term insurance plans like Accidental Death Benefit Rider, Critical Illness Rider, Hospital Care Rider, Waiver of Premium Rider, etc.

_Important: Riders may have their own set of age restrictions. So, make sure you are eligible for them before buying a term insurance plan. _

To Wrap Up!

Even if you are a senior citizen, a term insurance plan can be of great help to you. It will act as a helping hand to create a financial safety net for your loved ones. We hope this article has given you clarity on term insurance and the various tips you should follow to choose the best term insurance plan for yourself.