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Top 5 Features of Term Insurance for Senior Citizens in India

dateKnowledge Centre Team dateAugust 19, 2021 views314 Views
Term Plan for Senior Citizen | Best Term Insurance Plan

We are in an era of advanced technologies. Every product or service we use is continuously evolving and is in line with our needs. Then why not our financial products? A term plan is a simple insurance plan that gives a lump sum amount to your nominee in case of your death. There were no other benefits. The time has changed, and so have the term plans.

Five Features of The Best Term Plan for 60 Plus

If you plan to buy a term plan after 60 years, you can look for the below features in the plan:

1. 99 Years Coverage

If you want your term plan to continue after 60, you may look to fulfil more than the safety goal with it. You can use term plans like iSelect Star from Canara HSBC Oriental Bank of Commerce Life Insurance to leave a legacy for your children.

This is possible with the 99-year term cover option under the plan. In case of your natural death, your dependents and nominee will get the benefit amount in lumpsum or as regular income.

2. Income Protection for Spouse

If your spouse is dependent on you post-retirement, you have to make sure when you are not around, your spouse continues to maintain the same living standard. For this to happen, you have to choose a term plan that lets you choose how to receive the death benefit.

iSelect Star term plan gives you the option to choose the death benefit - you can take the sum assured as lump sum amount, monthly income, or as a mix of both. Depending on your financial situation, you can choose the option. If you have no loans or debts, a monthly income option will ensure your spouse receives regular income.

If you have some loans, the lump sum amount can help clear off the loans, and the remaining can be monthly income for your spouse. It is a must to have feature in your term plan as it gives you and your spouse a lot of flexibility.

3. Terminal Illness Cover

Illness always comes unannounced whether you are in your 30s or 60s. Illnesses affect you both physically and financially. Some illnesses like terminal illness can very quickly eat up all your savings. Savings you would have kept for your retirement years.

4. Protecting Dependents from Ongoing Debt

The term plan should have an option to pay the dependents a lump sum amount after your death. In case of your death, dependents need money to perform the last rites, and if you have debts on top of it, it could leave your family in trouble. To ensure this does not happen to your family when you buy a term plan in your 60s, it should have a life cover more than your remaining debt and liabilities.

Your term plan should be from an insurance company that has a high claim settlement ratio and easy settlement process. It will make sure your dependents get the lump sum amount conveniently to clear off all debts soon after your death.

5. Tax Savings

Last on the list, but very important to ensure you have it on your term plan. When you are in your 60s, you want to save maximum on the taxes since you have limited investment options to invest your money in (you cannot invest in high-risk options).

For this reason, your term plan should provide you with tax benefits so you can reduce your tax liabilities and increase your income. The sum assured your nominee will receive should also be fully exempted from taxes as part of your policy.

Why Have a Term Plan after 60?

You may be wondering what is the point of having a term plan after the age of 60, but there are many cases when having a term plan in the 60s makes sense. Below are a few reasons to have a term plan after the age of 60:

a) Your kids are financially dependent on you while you enter your 60s, having a term plan is mandatory. They may be doing higher studies and still depend on you. Or you may have dreams of spending on their marriage. In all these cases, having a term plan in the 60s will help you.

b) You are retiring and your spouse is dependent on you, you may want to have a life cover to secure your spouse's future with regular income. It will ensure they continue to live with dignity and self-respect even when you are not around.

c) You have loans and debts after you turn 60, it is always better to have a term plan to cover the cost of debts if something happens to you.

The modern term plan not only gives you a life cover at affordable prices but also survival benefits. When you buy a term plan, you protect yourself and your family from the harsh realities of life - Death, disability, and disease. With a modern term plan, you also save for your future.

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Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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