Life Insurance for Senior Citizens Over 65

What is Life Insurance?

Life insurance is a contract between an insurance company and you wherein the insurer is obligated to pay the beneficiary the sum assured after the death of the policyholder. Depending upon the contract, the company can also pay some amount at the time of the diagnosis of chronic illnesses like cancer, kidney failure, or seizures. 

After the contract is signed, the policyholder must pay a premium every month or a lump sum amount to the company depending upon the type of policy. Once the policy matures or unfortunate demise of the policyholder occurs, the company is liable to pay the beneficiary a sum assured, also known as death benefit. 

Why is Life Insurance for Senior Citizens Over 65 Required? 

When you purchase an insurance policy, it guarantees that your loved one will be taken care of financially in times of need. Buying insurance for parents, elderly, or yourself to prepare for the uncertainties of life is always a wise step.

Benefits of a life insurance plan for senior citizens over 65 are:

• Life insurance for senior citizens over 65 usually has a shorter-term period. Term maturity limit ranges from 10 years to 25 years. 
• Most insurance policies allow policyholders to pay short premiums or premiums in a lump sum to avoid burdening them ahead during retirement years. 
• Life Insurance policies usually make payments to the beneficiary immediately in trying times, even if the policyholder passes away during tenure. 
• Life Insurance is one the best ways to leave a significant amount to your descendants or co-dependents.
• Purchasing life insurance offers tax benefits under the Income Tax Act, Section 80CCC. 
• Most plans offer different payout modes depending upon the need of the policyholder and financial status after retirement. 
• It gives a sense of independence to you by reducing your financial worries for the future. You know, in the unfortunate event, your loved ones will be taken care of. 
• These policies pay after the death of the policyholder and have a provision to make payments during the time of chronic or terminal illness. 

How to Choose a Life Insurance Plan for Senior Citizens Over 65? 

Choosing a life insurance plan can be a tiring process, especially for the elderly. Before buying life insurance for senior citizens, you must compare all the plans available in the market and select the one that best suits your needs. 

Below are the key factors you must look into before purchasing life insurance plans:

1. Medical Examination

   It is usual for adults to have health issues. Only some plans make it mandatory for elderly people to undergo a physical exam or have a complete medical checkup. It can be a tiring process. You can select a plan that mandates health examination or opt for the one regardless of your medical conditions. You can also opt for a plan that covers your medical condition. 

2. Premium Rate

   To reduce the financial burden on the policyholder, most policies have smaller premiums. In addition, some policies allow flexibility in the premium payments. You can choose from multiple options such as monthly, quarterly, biannually, annually. You can also choose to pay the premium in a lump sum. Besides, your age is a critical factor in determining the amount of premium rate. 

3. Policy Term

   Most insurance policies for the elderly have a short tenure period. You can select the one that you think is most suitable for you. Some policies even offer an extension on tenure meaning that you can pay premiums post-tenure as well and receive extra returns. 

4. Insurance Coverage

   The prime motive of life insurance for senior citizens is to provide a death benefit. Most plans are designed so that in case of unfortunate incidents, beneficiaries get immediate payouts. Death benefits are applied to the policyholder's death even if it is before the tenure is completed. 

5. Rider Benefits

   Rider benefits are additional benefits that you can avail of on life insurance policies, including accidental death rider, accidental disability rider, critical illness rider, and income rider. You can choose the policy that offers these benefits along with reasonable premiums. 

In Conclusion 

There is no adequate time to purchase life insurance. These days you can see many insurance companies coming up with policies specifically catering to people over 65 years. Though it may seem like a tiring process, it is always advised to carefully research your preferred policy before buying.

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