Most people think they are hearty and healthy, and life will continue like a beautiful song that goes on loop. You may not have thought about it, but the truth is death can come at any moment. It is your responsibility to secure the future of your loved ones, in case you die. It does not matter whether you are in your 30s or your 60s, you need to secure the future of your family.
Term insurance plan is one such financial support that protects your family against financial turmoil in your absence. If you are in your 60s, you do not feel the need for a term plan, but it is always better to have one.
A term insurance plan is the simplest form of life insurance plan that gives your coverage for a certain period. If something happens to you during the policy tenure, your nominee receives the sum assured. There are multiple advantages of having a term plan. First, you get high coverage at a nominal premium. It also helps you save tax and provides you cover against critical illness and disability.
Why Might You Continue Term Life Insuance After 65?
However, contrary to popular belief, having a term plan even at 65 years of age makes sense.
Below are the top 4 reasons that you should not stop your term insurance cover at 65:
1. Have Dependents Other Than Spouse
If you have married late because you were busy achieving financial independence, there is a high chance your children will be dependent on you in your 60s.
If your children are dependent on you because they are studying (graduation or higher education), it makes sense to continue having a term plan. You don't want to shatter their dream at the last stage. With a term insurance plan, you can ensure, even if something happens to you, they can continue their education and post that live a life you have always wanted them to live.
2. Have Ongoing Loans
If you have taken a home loan or any other ongoing loan, you need to have a term plan as a cover against the loan. You don't want your loved ones to become homeless if they can't clear off the loans. Even if they can, you don't want them to take on the additional financial burden on top of the emotional breakdown they must be going through. For the same reason, your term plan should be such that it takes care of all your liabilities, and if something happens to you, all your liabilities are taken care of.
3. Not Retiring at 65
Most people dream of retiring early, but when the time comes they decide to continue. There could be several reasons you may do it. You may be scared of the idea of sitting at home all day long. It could be you have found your dream job in the later stage of life, and you want to continue working.
Also, it could be that things have gone against your plans, and you have to continue working to come out of the financial crunch you are in. You certainly need to have term insurance if you are working to come out of the financial crunch. In other cases also, it would be nice to have a term plan. It will ensure your dependents (spouse) can maintain the same living standard even in the worst scenario.
Canara HSBC Oriental Bank of Commerce Life Insurance iSelect Smart360 Term Plan gives you the option to choose how your dependents would like to receive the sum assured. Depending on your needs, you can decide the option - regular payouts, lump-sum payment, or a combination of both.
4. Leave a Legacy for the Next Generation
If you die during the term plan tenure, your nominee receives the sum assured. This way you leave a legacy for the next generation.
They may not be dependent on you financially, but you ensure you leave behind something for them that will help shape their future in a much better way. Under Life with Return of Premium Option of iSelect Smart360 Term Plan, you receive the total premium you have paid at maturity. You can leave this amount for the next generation.
Whole Life Term Insurance Plan
A simple life insurance plan comes with a policy tenure of 10, 20, or 30 years. However, a whole life term insurance plan gives you the option of whole life coverage. It means you are covered till 99 years of age, and you can make an entry in such a plan even in your 60s. With a whole life term insurance plan, you don't carry your financial liabilities in your post-retirement inning. It is an excellent plan for you if you are the only breadwinner in your family.
iSelect Smart360 Term Plan with Life Plus option gives you cover till 99 years of age. During the policy tenure, if you are diagnosed with a terminal illness or you die, the nominee receives the sum assured. If you continue to live till 99 years, the sum assured is paid to you.
Learn more about whole life insurance.
You can buy the whole life cover insurance plan by selecting the Life Plus option under the iSelect Smart360 Term Plan. Next, you have to choose how you want to receive the sum assured and then decide the Sum Assured, premium payment term, and payment mode. Provide other details about yourself and generate the premium quote. If you are comfortable with the premium quote and agree to terms and conditions, you can go ahead and make the payment.
There is no right age to have a term plan. You should have one irrespective of your age and continue it as long as possible. You can benefit from term insurance even in your 60s.