Why Should You Opt for Term Insurance for Senior Citizens?
Someone once said “never put an age limit on your dreams” – and one of the most common dreams everyone in this world has is to have a safe and secure life for both themselves and their loved ones. This is what makes it important to let go and treat your age just as a number.
Now is when you would wish to reap all the benefits in return for the hard work you have put ever since you were younger. Back in the days, there were not many options for the senior citizens to set up a financial security net for the future at an affordable cost with term insurance. But, with the advancements, in today’s age, with the wide variety of insurance providers out there in the market, buying term insurance for senior citizens is no rocket science.
In simple terms, a term insurance policy is a pure life protection policy that helps in providing a financial safety net for the loved ones of the policyholder in case of his or her demise during the tenure of the policy. The premiums charged on such a life cover policy are generally lower as there is no maturity benefit attached to such a plan.
Generally, the experts in the insurance industry recommend opting for a term coverage policy at a younger age. However, one question that might arise in many of our minds is “does it make sense to opt for such a policy once you cross the age of 60?”
Even though you might come out to be surprised, this thread will help you uncover some facts that will help you justify the thought of buying term insurance for senior citizens. Hang on and read along!
You Don’t Want Your Partner to Be Dependent
It is said that one must be self-reliant as well as strong if he or she wishes to survive in today’s world. While it is impossible to fill the gap that is left emotionally in one’s spouse’s life after the demise of the partner, but it is possible to fill up the gap created financially. If you have a partner who depends on you financially to run the household day to day, being a pensioner, it can be pretty tough to coup once the stream of income stops.
If you do not have any financial plans or arrangements in place, holding term insurance for senior citizens can be a source of income for the partner that requires it. The sum assured with the policy can either be taken out as a lump-sum payment or as monthly payments to sustain the current lifestyle and pay for the day to day expenses.
So, it is important to ensure that your spouse is self-sufficient and can live hassle-free financially if you are to be no longer around.
You Have Children Financially Depending on You
It is possible for you to be a role model for your kids presently. They might still be pursuing their education or aspiring to further take up higher education – meaning that they still depend on you when it comes to covering their finances. In case of a sudden demise, it is possible that they will be left impaired in terms of finances.
You can give them an option that will provide a financial net for their education along with any other finances if you are no longer around to support them. This option is taking up term insurance for senior citizens. Buying this term plan at this age can be slightly expensive, but it is worth giving your children the life they deserve to live.
You Have Unpaid Debts and Loans Piled Up
Retirement is the age when one can live the golden days and cherish a life free of any worries or hassles. But it is possible to be in a scenario wherein you might have taken up a personal loan, home loan, or car loan at some stage later on in your life. It could be anything, from taking up a loan to renovate your home or taken money from relatives during a financially tight time.
If you do not wish for your loved ones to be burdened by any financial obligations, it is good to opt for term insurance for senior citizens that will provide the financial support to tackle these debts. The sum assured received from the policy can help them pay off any unpaid loans or debts. So, it is a good option to take up term insurance for senior citizens even if it is late but it will help in your loved ones live a life that is free of financial worries.
You Want To Leave a Legacy Behind
If you want to leave a mark on your dear ones in some way, a term policy is a good option at hand. The idea behind leaving a legacy for the ones you love is nothing but the desire to be remembered by them in their hour of need. If anything unfortunate is to happen to you, your beneficiaries will receive a sum assured as a lump sum via your policy. So, term insurance for senior citizens is a good way to carve your name in your family’s heart.
You Still Have To Work Even After Retirement
Certain financial obligations in life might just put you in a situation wherein you will be on the tip of your toes even once you have reached your golden years. You may just decide to work part-time or have your own small scale business in order to fulfill your finances. While some of the people may have some financial problems, others may just wish to work to gain a stronger sense of financial security and remain active.
If you are in circumstances that force you to work even after your retirement, then you should consider opting for term insurance for senior citizens as it will help you bridge the income gap that is likely to arise after your demise.
The Final Say
While the premium charges on term insurance for senior citizens may increase as one matures along with some other exclusions and terms, it makes sense to opt for one in order to live and offer a life for your dependents that is free of worry and hassles. However, if you are young and you wish to skip the high premium charges and also secure your family members, it is sensible to buy a term plan while you are still young.
If you are keen on opting for a term plan, take time and talk to people, compare the different policies and research online, and then shortlist on the one that is best for your needs. But, make sure you are clear on your requirements before going ahead and finalizing a term plan.