Although you may be past the opportunity to buy life insurance in your prime, getting life coverage over 50 years of age is still relevant to financially protecting your loved ones. Many insurance companies allow individuals over 65 to purchase an insurance policy. You can also buy term insurance even over the age of 70 years.Read more
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Let us explore life insurance policies for individuals above 70 years of age.
Life insurance is a contract you sign with an insurance company that specifies different terms under which your death, critical illness, or other aspects are covered. Life coverage is only offered for active policies, which can be done either by renewing it every year or paying monthly premiums. While term insurance is a pure death benefit plan, other types of insurance plans also offer maturity benefits.
At the end of the policy term, you will receive back the premiums paid by you over the years under maturity benefit. Both death and maturity benefits are typically exempted from tax under the IT Act.
Although senior citizens above 70 years are eligible for life insurance, their options are limited compared to individuals in their 20s or 30s. They can get a term insurance policy for a maximum of 10 years or 15 years, depending upon the insurance company.
Senior citizens over 70 years can opt for a whole life insurance plan or universal life insurance plans. Both of these plans do not have a term limit and protect until the policyholder's death. However, the premiums rates are significantly higher for such term insurance plans.
A retirement insurance plan can also be another lucrative option for senior citizens. Instead of choosing life cover, they can invest in a retirement plan that will yield them better returns. Retirement plans are designed specifically to cater to people over 70 years, which helps grant them financial independence. The retirement insurance plan also covers your spouse. After the policyholder's death, their spouse will get the benefits of the retirement plan.
Life insurance provides senior citizens financial stability and independence in their sunset years with multiple other benefits. Some of them are listed below:
Choosing the right insurance plan for senior citizens can be tiresome as you will have to choose from multiple options with varying benefits. It is always advised to look through multiple policies before choosing one. Senior citizens often have health issues. Before selecting any plan, you must consider whether the plan covers your health issues or offers substantial coverage. You must carefully look through the term, investment and premium before selecting an insurance policy.
After analyzing the necessary factors to choose one policy, you can purchase the policy online. If your chosen policy does not have an online process, you can visit that insurer’s nearest branch to complete the process or ask them over a call to visit your place. The insurance company will send their representative to your home or office to initiate further process.
It is never too late to purchase an insurance policy for financially securing your loved ones. For senior citizens, the options remain limited. Therefore, you must consider all the factors relating to your insurance policy to quickly finalise a plan and complete its buying process.
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