Exploring the Types of Insurance Plans Best Suited for Senior Citizens

A Term Plan for Senior Citizens provides extensive coverage and provides financial security to the family members of the policyholder in their absence. Death benefits are paid to the family members in case the policyholder dies.

How to Choose an Appropriate Term Insurance for Senior Citizens

Provided are the things to be considered while choosing an appropriate term insurance for senior citizens:

• Evaluate Coverage Required

Assess the amount of coverage required by considering financial obligations, current lifestyle, present liabilities, etc.

• Check Policy Tenure

Check for the policy tenure required, aligning with the age of senior citizens & health conditions. Short policy tenures are considered to be more appropriate in the case of senior citizens.

• Compare Premium Amount

Compare the premium amount to be paid offered by different insurance companies to choose one that best suits your pocket.

• Assess the Reputation of an Insurance Company

Check the reputation of the insurance service provider by evaluating the reviews, claim settlement ratio, etc., to ensure their reliability.

• Consider the Health Requirements of Senior Citizens

Depending on your health status, opt for a policy, as some plans need medical check-ups to be done, while others do not.

• Review Additional Riders

Consider additional riders available, such as critical illness riders, accidental death benefits, etc., which will help enhance coverage.

Riders Available with Term Insurance for Senior Citizens

• Critical Illness Rider

In case of a policyholder being diagnosed with a critical illness like heart disease or cancer, this term plan offers a lump sum amount.

• Accidental Death Rider

This plan offers an additional death benefit in case the policyholder dies due to an accident.

• Waiver of Premium Rider

In case the policyholder becomes critically ill or suffers from permanent disability, the premium amount gets waived off.

• Income Benefit Rider

This rider provides a regular stream of income to the family members after the death of the policyholder.

• Hospital Cash Rider

This provides cash benefits at the time of hospitalisation to cover the medical expenditures.

Different Types of Term Plans for Senior Citizens

Provided are the different types of term plans that best suit senior citizens:

1. Life Insurance Policies

• Term Life Insurance

Term life insurance offers coverage for a pre-determined tenure, ensuring financial protection of dependent family members in case of their demise.

• Whole Life Insurance

This plan offers coverage for the whole lifetime of the policyholder, along with the savings component that helps accumulate cash value over a period of time.

• Endowment Plans

These plans offer dual benefits of insurance & savings, where a lump sum amount is received on the sudden demise of the policyholder, ensuring financial security to beneficiaries.

2. Critical Illness Insurance Policies

• Lump Sum Payment

In case the policyholder is diagnosed with a critical illness, the insurance company pays them a lump sum amount.

• Comprehensive Coverage

All the plans include a list of illnesses, which offers financial assistance in getting the treatment done.

3. Long-term Care Insurance Policies

• Extended Coverage

These plans offer extended financial assistance towards the long-term services, which are not included in regular health plans.

• Quality of Care

This helps in getting high-quality care with the help of financial support, hence assuring a good quality of life at a later stage.

Reasons to Buy a Term Insurance for Senior Citizens

Provided are the reasons senior citizens should buy a term plan:

• To leave an inheritance to family members

The term plan will help senior citizens to leave an inheritance for their spouse, children &grandchildren.

• To provide financial security for dependents

This plan offers financial security to the dependent family members in case of the unfortunate demise of the policyholders.

• To Cover Liabilities

This plan also helps the family members to pay off remaining liabilities left unpaid by the policyholders.

• Considered to be an Ideal Plan for Breadwinners

If the senior citizen is the only breadwinner of the family, buying a term plan ensures that the family members will receive the sum assured against the income loss that occurs due to the policyholder’s demise.

• Helps to Create a Legacy

It helps create a legacy for future generations in the absence of senior citizens by providing a lump sum amount to fulfil the financial needs.

Benefits of Term Insurance for Senior Citizens

Provided below are the term insurance benefits for senior citizens:

• Financial Independence

The policyholder feels confident that his/ her family members will not face any financial difficulty in his/ her absence.

• Financial Protection

Death benefits are paid to the policyholder’s family members in case of the policyholder’s sudden demise. This sum assured covers the expenses of the family members in the policyholder’s absence.

• Tax Benefits

The premium paid is eligible for tax deductions under the relevant income tax sections, providing financial relief.

• Affordability

It is pretty affordable compared to other plans, which makes it accessible for senior citizens.

Steps to Purchase Term Insurance for Senior Citizens

Provided below are the steps to buy term insurance for senior citizens:

Step 1: Visit the insurer’s website from which the insurance is to be purchased.

Step 2: Select a policy from the diversified range of term insurance products. The one that best suits your requirements should be selected.

Step 3: Consider the sum assured & policy tenure along with the additional riders to enhance the coverage, by paying an additional premium.

Step 4: Paythroughthe secure payment gateways provided by the insurance company.

Step 5: Get your medical check-ups done before issuing the policy.

Step 6: The term insurance policy will then be issued after the digital copy of the policy is received at the registered e-mail address. The physical copy is received some days afterwards.

Step 7: To buy the policy offline, visit the insurance company’s branch office or meet an intermediary. Fill out the form, submit it along with the documents, &proceed further to pay the premium amount.

Conclusion

Term insurance for senior citizens provides financial security to the family members of the policyholder in case of their demise. However, the premium amount for senior citizens is higher due to age-related risks. Still, it is important to compare the plans offered by different insurance companies & choose a plan that best suits your budget.

(The views, opinions, and claims in this article are solely those of the author’s and do not represent the editorial stance of The Assam Tribune)