The plans are offered to people of all age groups depending upon their medical examination, age, and affordability. Life insurance for senior citizens over 60 years is apt for individuals who want to protect their families from financial distress during their absence.
Why Is Life Insurance for Senior Citizens Over 60 Years Required?
Old age is the time when the health conditions of a person worsen. Physical ailments are elevated due to the fragile condition and body immunity lowers. As a result, the rate of older people succumbing to death is higher than younger ones. Life insurance for senior citizens over 60 years is essential to create a safety net for the family or financial dependents.
Following are the reasons why life insurance for senior citizens over 60 years is necessary:
- Inheritance: The sum assured could be of great use to your family and children. With the help of a life insurance policy, you can be sure that the loved ones you leave behind will not face financial difficulties and inherit a sizable amount of money after your death.
- Secured partner: Life insurance meant for senior citizens provides immediate coverage as there is no waiting period. If you plan to provide financial support to your spouse, who is dependent on you, then life insurance would be an ideal choice for you. This way, they would not be financially burdened after you pass away.
- Life expectancy: Due to advancements in the healthcare field, Indian senior citizens now have an increased life expectancy. This makes them live fulfilling lives while travelling the world, amongst other things. Life insurance policies provide coverage to overcome health-related costs.
Benefits of Life Insurance for Senior Citizens Over 60
Life insurance policies for senior citizens offer several benefits. Some of them are:
- If you are nearing the age of 60 years, the need to be financially secure increases. By purchasing a life insurance policy, you can ensure that all the expenses you will incur will be covered.
- All their needs would be fulfilled with the help of regular payouts provided by certain insurance companies after the policy reaches maturity.
- Life insurance policies also help with additional earnings in the form of tax deductions. All life insurance premium payments are eligible for tax exemptions under the Income Tax Act, 1961.
- It is the best way to leave money in the form of inheritance for your family to free them from financial struggles in the future.
- If the policyholder has an existing or chronic ailment, certain life insurance policies have provisions for payments for health-related expenses in the future.
How to Choose the Right Life Insurance Policy for Senior citizens Over 60 years?
By keeping the following points in mind, you can choose the life insurance policy for senior citizens:
- Financial coverage: This is the first and foremost requirement which a life insurance policy fulfils. Senior citizens must be sure that their surviving family receives the death benefit assured by the policy. The benefits awarded to the nominees should be provided with immediate effect after an unfortunate event.
- Insurance premium: Insurance companies charge a set amount of payment known as a premium. Before purchasing a policy, you must be aware of the amount of premium you would have to pay every month. You must choose a policy whose premium is affordable for you.
- Tenure: The tenure of the insurance policy affects the claim at the time of settlement. If you have children who are dependent on you for survival, the tenure must be longer. However, most life insurance policies for senior citizens have a shorter tenure, depending on their health condition and age. At the time of purchase, you can choose the tenure according to your suitability.
- Add-ons: Almost all insurance companies provide add-ons or riders that can be purchased on top of the base policy for additional coverage. You must have considerable knowledge about the rider benefit that is offered to you by your insurer.