What are the Best Life Insurance Plans for Senior Citizens?

What are the Best Life Insurance Plans for Senior Citizens?

Learn how you can protect your loved ones with age-specific policies and needs.

Written by : Knowledge Centre Team

2025-07-22

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12 minutes read

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With old age come a vast number of changes to one’s lifestyle. This change is especially seen with an individual’s source of income once the age of retirement rolls around. This can be a challenging time for these people as they are no longer in expectation of a monthly salary, and their health may start to decline as well.

Many individuals belonging to the older generation also fear for their families and spouses during this time. In addition to this, the drawbacks with existing life insurance plans for the older generation is that the plans require high premiums as well as having several restrictions and a long list of terms and conditions.
 

Key Takeaways

  • Senior citizens can opt for term, whole life, or ULIP-based insurance tailored to their retirement needs.

  • Insurance plans offer flexible withdrawals, lump sum payout, and tax benefits post-retirement.

  • Buying life insurance early can significantly reduce premium costs for senior citizens.

  • Insurance provides financial security for dependents and ensures debt repayment after one's demise.

  • Always compare policy types, entry age limits, and read policy documents carefully before buying.

Can Senior Citizens Buy a Life Insurance Plan?

Absolutely, senior citizens can buy a life insurance plan, though the earlier you start, the better. While many assume that life insurance is meant only for younger individuals, today, there are several plans available. Individuals in their 60s and 70s can easily find budget-friendly, adaptable insurance options.

At Canara HSBC Life Insurance, our thought is that financial planning does not stop once you reach a certain age. In fact, a senior citizen life insurance plan is designed to address the very real concerns that come with later stages of life. These concerns may include limited income, medical expenses, and most importantly, securing your family’s future.

What truly works in favour of senior citizens is that insurers now provide a variety of plans tailored to suit older age groups. These include whole life, term life, and even ULIP-based plans that offer both protection and a disciplined way to grow wealth. The eligibility age often ranges from 60 to 80, depending on the plan and medical history.

So yes, not only can senior citizens buy a life insurance policy, but doing so can be a strategic move towards peace of mind in their golden years.

Why do Senior Citizens Need Life Insurance?

While most consider life insurance to be a payout in times of need, it also provides peace of mind, especially when your income slows down. In fact, during this stage, responsibilities tend to increase even more. Here’s why investing in a senior citizen life insurance policy is not just beneficial but sometimes necessary:

  1. Financial Security for Dependents: Many seniors still support their spouses, children, or even grandchildren. A senior citizen life insurance plan ensures that in the event of their passing, the dependents are not left struggling financially. Whether it’s covering daily expenses, pending loans, or higher education costs, this plan can act as a much-needed financial cushion.
  2. Debt Repayment: Some senior citizens may still carry financial liabilities. This may include a loan to purchase a home, meet personal expenses, or business debt. Life insurance ensures that these debts do not pass on to the family members during unfortunate times.
  3. A Legacy for the Next Generation: For many individuals, insurance is one of the approaches when it comes to leaving behind a legacy. Insurance acts as a guaranteed way of passing on an inheritance in times of need. Such an act expresses both compassion and a responsible nature. Furthermore, it expresses a sentiment of continued care, even in one's absence.
  4. Covering Medical and Emergency Costs: Some plans come with living benefits or allow partial withdrawals. In case of a medical emergency, these features can be lifesavers. Though not a health insurance plan, a well-structured life policy can still provide liquidity during urgent times.
  5. Emotional and Financial Independence: Effective personal financial management is a key asset for senior citizens. Senior life insurance plans offer ways to achieve this, including maturity benefits and flexible payout structures.

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Best Types of Life Insurance Plan for Senior Citizens

The most common plans that are beneficial to senior citizens are whole life insurance plans. Some even opt for universal life insurance plans. Here are 3 varieties of plan that a senior citizen may consider buying to create a financial cushion:

  • Term Life Insurance: This type of life insurance involves providing coverage for a stipulated period. This period ends once the duration of the policy ends. These plans are more affordable for the average person in comparison to whole life policies. Several features of the plan can be altered, like premium payment amount, sum assured as well as tenure of the plan. The coverage may also change as one advance in age.
     
Benefits of Term Insurance
  • Whole Life Policies: The benefit of investing in a whole life policy is that one can invest in it at any age. It is also a comprehensive or all-inclusive policy that one buys for the remainder of their lives. Therefore, the policy period does not end until the death of the insured.

After which, the fund value is payable to the insured’s nominees. The price of these policies is higher because it involves both a savings component and provides coverage as well. It offers permanent protection that no other policy offers.

  • Tax Saving Plans: One of the characteristic features of Promise4Growth Plus plan is that it offers certain tax exemptions. This is because the insured will be eligible for tax benefits under Section 80C and Section 10.

Therefore, this plan can contribute a great deal to the insured even after they are unable to receive a monthly income. From the maturity benefits to the periodical withdrawals, senior citizens can retain the lifestyle they choose to have well into their retirement.

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Did You Know?

Since FY 2018-19, Section 80TTB allows senior citizens a deduction of up to ₹50,000 on interest income; any amount above is taxed as per slabs.

Source: charteredclub

 

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5 Benefits of Senior Citizen Life Insurance Policies

At present, Canara HSBC Life Insurance offers an array of life insurance plan for senior citizens. One such plan is Promise4Growth Plus, which greatly contributes to one’s financial independence later in life while being affordable. The plan aligns with the above factors as it offers a reasonable 5 year lock in period. In addition to having flexible terms, it also offers the following benefits:

  1. Maturity Benefits: The assured sum or fund value that is promised to the insured receives a 4% to 8% investment return. The assured sum involves the payment of 10% of the premium paid.

  2. Death Benefit: In the event of the insured’s death after the lock-in period, the family can choose to receive a lump-sum payment or wait for the maturity period to end to receive the payment of fund value.

  3. Loyalty Additions: These additions apply to the insured after 5 years.
    The individuals that pay their premiums on a timely basis are eligible for assured loyalty addition.

  4. Withdrawals: One is capable of making partial withdrawals after 6 years from the commencement of the policy or if the life assured completes 18 years (whichever comes at the latest).

    • Systematic Withdrawals: These withdrawals allow the insured to receive a certain payment, as per the percentage of the fund value, at regular intervals.
    • Milestone Withdrawals: After surpassing the 5th and 10th year of the initiation of the policy, the insured receives a payment of 20% of the fund value.
  5. Reduced Premium: After the premium payments made during the lock-in period, one can opt to pay a lower premium. However, this is subject to certain conditions.

Although every individual faces inevitable mishaps from time to time, the senior population is more susceptible to this. Therefore, having a backup whole life cover plan can prove extremely useful during these times.

4 Factors to Consider before Buying a Life Insurance Plan

The factors one has to consider before investing in life insurance can vary from person to person. However, before opting for any life insurance, one must consider the following factors:

  • Age: Age is one of the more significant factors in investing in a life insurance scheme. If you opt for a insurance plan later in your life, you will have to pay a higher premium. However, if you plan to buy a life insurance plan early, you will enjoy a lot of benefits and one of them is lower premiums. As with age, chances of diseases also increase. Hence, your life insurance premium will depend on your age when you are buying a life insurance plan.

Learn about the advantages of buying a life insurance plan at an early age.

  • Medical Conditions: If one is suffering from pre-existing problems with their health, one should keep in mind the lock-in period. In case the disease acts up and requires one to avail medical assistance before the lock-in period, then they will not be able to pay for said medical bills through the insurance. Although one can discontinue the policy before the first five years, they will be liable to pay surrender charges.
  • Period of Waiting: This involves the time before which one can access the funds invested in the life insurance. The number of years can vary. This time is also known as the lock period. One should choose a plan that does not have a long lock in period so that one can avail the benefits of the plan as soon as possible.
  • Premium: The premium for most life insurance plans catering to the older population is inflated given the deterioration in health that is commonly seen. The premiums possess a gross investment return of 4% and 8%, which will be reflected after the maturity period of 15 years or in the event of the insured’s death (in the form of a lump sum).

Life insurance for senior citizens can prove beneficial to one’s family as well. The reason is that the funds invested in a life insurance plan can become the inheritance that one leaves their family. The insurance plan funds can also act as a source of a guaranteed regular income. Thus, allowing one to be independent even after they no longer receive a monthly salary. Upon the event of one’s death, their spouse, if alive, receives the payment. Therefore, the insurance will act as a pension fund that you can rely on later in life.

How to Buy Life Insurance for Senior Citizens?

Buying life insurance as a senior citizen doesn’t have to be complicated. With the right guidance and clarity on what you need, the process can be smooth and reassuring. Here’s a simple step-by-step approach to help you or your loved ones choose the right plan:

  • Assess Financial Goals and Responsibilities: Before choosing a policy, make a note of your financial obligations. Consider a few things, like whether you have dependents, ongoing EMIs, or future plans you’d like to fund for your family. Knowing your goals will help you decide on the right senior citizen life insurance policy.
  • Compare Policy Types: Opt for an insurance policy that is both affordable and suitable for your circumstances. For example, the iSelect Guaranteed Future Plus plan by Canara HSBC Life Insurance offers customisation, investment growth, and flexible withdrawals. It is a suitable policy for retirees looking to invest in a financially stable tomorrow. Senior citizens generally opt for one of the following:
    1. Term Life Insurance: It offers coverage for a fixed term and is cost-effective.
    2. Whole Life Insurance: It yields long-term security alongside a savings aspect.
    3. ULIP-Based Plans: A balanced plan with life cover and investment benefits.
  • Check Entry Age and Medical Requirements: Some of the insurance plans allow entry up to age 70 or even 80. However, medical check-ups are usually part of the process. Full disclosure of your medical status is essential to maintain claim validity. The more proactive you are, the better your chances of getting an affordable premium.
  • Use Online Tools: Digital tools like retirement planning on insurance websites can help you get an estimate based on your age, sum assured, and policy duration. It gives you a clearer picture before speaking to an advisor.
  • Read the Policy Documents: Thoroughly examine the policy's exceptions, time-based restrictions, and payout criteria. A trusted insurer ensures complete transparency, but it’s always wise to understand your policy thoroughly before purchase.
  • Reach out to the Insurance: A flexible insurance company can help personalise your policy to suit your retirement goals, lifestyle, and future financial needs. This is especially important when buying senior citizen life insurance, where the right features can make a big difference.

Conclusion

Old age brings wisdom, experience, and the need for thoughtful planning. Whether you’re seeking a safety net for unexpected medical expenses or simply want to leave behind a legacy, a well-chosen insurance policy can do the job. At Canara HSBC Life Insurance, we believe that financial independence should never have an expiry date. Our plans are specially made for senior citizens with care, flexibility, and smart benefits. They ensure your golden years are lived with confidence and comfort.

Let your life continue to be a source of strength for your family, even in your absence. Because preparing today means protecting tomorrow.

Glossary

  1. Maturity Benefit: Amount payable to the policyholder at the end of the policy if they survive the term.
  2. Systematic Withdrawal: A feature that allows regular payouts from the fund value, like a retirement income stream.
  3. Milestone Withdrawal: Lump sum withdrawals after certain years (e.g., 5th or 10th year) to support life goals.
  4. Tax Benefits (Section 80C & 10D): Income tax deductions and exemptions available on premium payments and maturity value.
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Uncertain About Insurance

FAQs

Yes, term insurance is available for seniors, though premiums may be higher and coverage limited by age.

 

Key benefits include death cover, maturity returns, loyalty additions, tax savings, and partial withdrawals.

 

While not a health insurance plan, some life insurance policies allow withdrawals that can aid during medical needs.

 

Yes, premiums qualify for tax deductions under Section 80c and payouts under Section 10(10D) of the Income Tax Act.

 

Many insurers allow entry up to 70 or even 80 years, depending on the policy and the applicant’s health condition.

 

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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Life Insurance - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Family Shield: Enhanced Protection

iSelect Smart360 Term Plan
  • 3 Plan options
  • Life cover till 99 years
  • Steady income benefit
  • Block your premium at inception

Start Young, Pay Less, Stay Secured

Young Term Plan
  • Life cover till 99 years
  • Coverage for spouse
  • Block your premium rate
  • Covers 40 critical illness

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus
  • 4 Plan options
  • Life cover + Guaranteed benefits
  • Accidental death benefit
  • Premium protection cover