Buy a term plan and secure your family
Back in time, there were not a lot of term plans available in the UAE market that provided coverage to senior citizens or retirees. However, the insurance providers working in the insurance industry recognized the constraint and came up with plans that offered coverage to individuals above the age of 60. A term insurance plan is an absolute must individual of all age groups since it mitigates the various risks associated. In fact, with providers offering plans to senior citizens the popularity and sales of these plans have increased substantially.
There are numerous reasons why retirees and senior citizens need term insurance plans. As mentioned earlier term insurance plans are pure risk protection and have no maturity benefits associated with them. These plans are affordable, flexible and user-friendly that makes them the most popular insurance product of all time. Here’s a quick rundown on the importance of term insurance plans for senior citizens:
As mentioned earlier, a couple of years back there were only a couple of providers that offered term insurance plans to people over the age of 60. In recent times, insurance seekers even above the age of 60 can get desired term insurance plans. However, insurance seekers should be well aware of the fact that the availability of the plan is subject to a medical examination. Once the applicant clears off all the medical examinations he/she would be eligible to get a term insurance plan in the UAE. An important point to be considered here is that the premium for term insurance plans for senior citizens is much higher than younger individuals.
In this section of the blog, we will be discussing some of the major benefits of opting for term insurance plans by retirees and senior citizens.
The first and foremost benefit of opting for a term insurance plan by senior citizens and retirees in the UAE is financial stability. According to recent statistics, the majority of retirees and senior citizens require some sort of medical assistance by the time they turn 65. Medical and health care expenses are extremely high and with increasing age, these expenses tend to rise substantially.
Health insurance plans cover a part of the total expenses incurred in the treatment. Without long term insurance policies, senior retirees might face financial difficulties. Sum assured from the term insurance plan offers proper financial assistance to the policyholders.
Life is extremely unpredictable and nobody is aware of what might happen the exact next moment. Term insurance plans allow policyholders to secure the future of their family in case of any fortunate event leading to the demise of the policyholder. Typically, individuals retire from their jobs by the age of sixty. If you have dependents who rely on your earning for managing their finances term insurance plan is an absolute must.
The primary objective of a term insurance plan is that it provides financial assistance to the policyholder’s family so that they can maintain the same living standard.
As a basic thumb rule of the insurance industry, policies valid for long periods have considerably lower rates of premium when compared to other insurance products since there is no aspect of investment associated with the plan. Once the policy period is completed there is no return from the plan and hence these plans are referred to as pure risk protection plans.
Senior citizens usually prefer life insurance plans instead of term insurance plans. However, ideally, senior citizens should opt for low risk-based term insurance plans as investing in financial tools that have high levels of risks are not the right choice based on the age of the buyer.
Term insurance plans are quite diverse and come with a plethora of different features; here are some of the important points to ponder while buying term insurance plans for senior citizens and retirees.
While the payable premium for term insurance plans increases exponentially for insurance seekers that are above the age bracket of 60 and are classified as senior citizens or retirees. The level of potential risks increases with age so it is highly recommended that people in this stage of life should buy a term insurance plan so that their dependents can spend their lives without worrying.
However, if you save on all that additional expense that you’ll have to pay in the form of premium you should consider buying term insurance plans at an early age. Before you go ahead and purchase a term insurance plan you should research online and offline to make sure you get the plan that suits all your requirements at the lowest cost.