Term Insurance for Seniors - Vital Requirement or an Expense?

The insurance market is going through a phase of transition based on the needs of the customers which has led to the development of new-age insurance products. These products include customized, tailored insurance policies that are made to fulfill the needs and fit the budget of the customers.

One of such tailored plans based on the needs of the customer is known as a term insurance plan for seniors. These customized term insurance plans allow seniors to secure the future of their loved ones financially. If you are in your fifties and are looking forward to getting term insurance for yourself there are numerous providers that have a variety of plans to safeguard your loved ones against the strokes of uncertainties.

Importance of Term Insurance Plans for Seniors

There are several reasons to why term insurance plans for seniors is necessary, here’s a rundown-

• Very often people have outstanding financial obligations that are unsettled. In order to take off the burden from your children’s shoulder you can opt for a suitable term insurance plan for seniors that will cover your outstanding debt. With the right term insurance policy in case of an unfortunate event that might lead to the demise or disability of the policyholder the family is financially secure by the term insurance plan. 

• Twilight years of life are uncertain and unpredictable due to which the future of the dependents of the policyholder is financially ambiguous. Term insurance plan for seniors efficiently manages and takes care of all the financial needs of your dependents and loved ones providing a sense of peace and security. 

• It has been observed that sudden death in the family, especially in the case of the primary breadwinner of the family leads to a downfall in the quality of lifestyle they had been leading. By taking a small decision of purchasing a term insurance plan for seniors your loved ones can continue to lead the same lifestyle as they are living now. It helps to maintain financial stability and balance even after the breadwinner of the family is not there to provide for the needs of the family. 

• The modern-day trend has changed substantially and a lot of people prefer working to post the age of 60. In case you are somebody who has chosen to work post and not eligible for a pension a term insurance plan for seniors will ensure that your family has a source of regular income that will help them to make ends meet during financially stressful phases. 

Important Points to Ponder Before Buying Term Insurance for Seniors

Term insurance plans for seniors come with a variety of benefits and features, they are as follows-

• Typically, the maximum age to be eligible for term insurance plans is sixty (60, however, it may vary from provider to provider or plan to plan. 

• The term insurance plan is valid for a given period of time only which is known as the term of the policy. If the policyholder survives the policy period aka term of the plan there is no maturity benefit associated with it. The nominee is entitled to receive the sum assured only in the case of an event where the policyholder passes away within the term of the plan. However, if you are willing to secure the premiums that you have paid you can opt for a special term insurance plan for seniors also known as ‘premium return of term’ plans. With this kind of plan, you/your nominee will be entitled to receive the entire amount that was paid as the premium of the plan. 

• As a general thumb rule of insurance, the amount of premium one needs to pay depends upon the age and health status of the applicant. The higher the age of the insurance seeker will be higher will be payable premiums. This way, senior citizens willing to get term insurance plans to have to pay more than younger people. 

• For the majority of insurance providers in order to get a term insurance plan for seniors it is vital to get a medical checkup to get the correct status of the health of the applicant. It is very likely that if you apply for a term insurance plan for senior you might have to go through a medical check-up. However, an important point to be kept in consideration here is that there some providers that do not require your medical check-up but require medical history. 

• The backbone or the strengthening element of any insurance plan is the add-on riders. There are numerous riders that are available with term insurance plans for seniors to enhance the protection quotient of their plans by providing extra coverage over the basic plan. 

In a Nutshell

Term insurance for seniors is an absolute must to secure the future of your loved ones and spend the rest of your twilight years with peace of mind. Insurance seekers can explore, compare, shortlist, and choose some of the best term insurance plans for seniors based on their needs and budget. Now purchasing term insurance is not a tedious and tiring job, you can safeguard the dreams of your family with just a few clicks.