Life insurance plans serve different purposes at different life stages. Young people buy a life insurance plan to secure the financial future of their loved ones against any uncertainty. In addition, it helps create a secure retirement fund for the future stability of senior citizens over 70 years. Therefore, life insurance for senior citizens over 70 years helps secure their post-retirement needs. So, Let us explore life insurance policies for individuals above 70 years of age.Read more
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Let us understand the need of buying term life insurance in old age along with below examples:
Example 1: If your children are financially dependent on you
If you decide to have children to grow your family, your kids are bound to be economically dependent on you. By the time you reach 60 years, your children might be in college or starting their careers. Buying a life insurance plan will make sure that they are financially stable, even in case of your absence.
Example 2: If you wish your better half to be self-reliant
In case you have a non-working partner, taking care of their finances in old age becomes your responsibility, in case of your absence. This way, if anything happens to you, they will be secured financially with a term or life insurance plan.
Example 3: If you have financial liabilities
Repaying some unpaid loans and debts can become a burden in your retirement days and in case of your demise, these liabilities will stress your family members. In such cases, it is a smart decision to buy a term or life insurance plan under your name. The death benefits from the term plan can help you pay off any unpaid debt/loan amount.
|Life Insurance Plan for 70 years old||Claim Settlement Ratio||Entry Age||Maturity Age||Maximum Sum Assured|
|ICICI iProtect Smart||97.82%||18-65 years||85 years||No Limit|
|HDFC Click 2 Protect Super||98.66%||18-65 years||85 years||No Limit|
|Bharti AXA Flexi Term Pro||99.09%||18-65 years||99 years||No Limit|
|Tata AIA Sampoorna Raksha Supreme||98.53%||18-45 years||75 years||No Limit|
|Bajaj Allianz e-touch||99.02%||18-60 years||75 years||No Limit|
*Note: The table is made in reference to a 62 year old non-smoking male, with salaried income of 15-25 Lakhs per annum, choosing Rs. 1 Crore life cover until 85 years of age.
Life insurance provides senior citizens financial stability and independence in their sunset years with multiple other benefits. Some of them are listed below:
Source of income: After the earning member retires, the source of income diminishes which can also cause an unnecessary burden on the other family members. Insurance policy can become a source of income for the policyholder post their retirement.
Transferrable corpus: After retirement, investing in an insurance policy is a certain and easy way to create more corpus to pass on to their next kin. After the policyholder's death, the spouse, beneficiary, or legal heir gets death benefit from the insurance policy.
Multiple options: These days, many insurance companies specifically design insurance policies catering to the needs of senior citizens. Potential policyholders can choose an adequate plan that will offer better returns on their investments. Policybazaar, in this case, allows the customer to choose from over 15 insurance companies, and provides a detailed analysis of all the best and most suitable options available.
Additional benefits: Due to their higher age groups, life insurance policies by default include death benefits. The insurer also pays for the funeral and other death-related expenses, medical expenses, and a sum assured to the beneficiary. If required, the policyholder can also avail riders along with their plans to enjoy benefits of those riders, whenever required. Some riders are Waiver of Premium rider, Critical Illness rider, Accidental Death Benefit rider, etc.
Peace of mind: Having a life insurance policy helps bring peace of mind to earning individuals knowing their dependents do not have to worry about money after them. They can easily opt for a sum-assured payout option while purchasing the policy that includes lump sum or monthly income payouts.
Tax benefit: Policyholders can claim tax deductions up to Rs 1.5 lakh per annum on the paid premiums in a financial year. They can claim tax deduction benefits under the Income Tax Act, 1961, Section 80 CCC. Apart from these returns, their income through investment policy is also tax-free.
Choosing the right life or term insurance plan for senior citizens can be tiresome as you will have to choose from multiple options with varying benefits. Before purchasing life insurance plans for senior citizens over 80 years, you should compare all the plans available in the insurance industry and choose the one that best suits your requirements. Following are the points to keep in mind before choosing a life insurance plan for senior citizens above 60 years:
Type of policy
Number of dependents in the family
Claim settlement Ratio of the Insurer
You can buy the best life insurance plan for senior citizens over 70 years in India online by following the below steps:
Step 1: Go to Policybazaar’sLife Insurance page
Step 2: Enter basic details like Name, DOB, and Phone no. and click on ‘view plans’
Step 3: Submit details about your occupation type, annual income, educational qualifications, and smoking habits
Step 4: Compare the policy details of the different plans available
Step 5: Select the life insurance plan that fits your requirements the best
Step 6: Proceed to pay via net banking, debit or credit card.
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 finalize a plan and complete its buying process.
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