Life Insurance for Parents in India

With the increase in the average life expectancy rate, the older population in India is on the rise. Most of the senior citizens tend to feel deserted financially during their old age, and they depend majorly on their children. One of the right ways to make your parents feel comfortable and financially secure is to buy the best life insurance plan in India. Nowadays, insurers in India offer a wide variety of senior citizen plans. These plans will take care of your parent’s finances even in case of your absence.

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What is Life Insurance?

Life insurance is an agreement between a policyholder and an insurance company, wherein the insurer pays a sum assured to the policyholder or to the appointed nominee in case the policyholder meets with an unfortunate demise in exchange for the payment of premium made towards a life insurance policy. 

Can I Buy Life Insurance For My Parents in India? 

Yes, you can easily buy life insurance for your parents that help cover their expenses. It provides peace to your loved ones during any critical time. To purchase a policy for a parent, one requires their consensus along with valid proof of insurable notice. The policy type you purchase will depend on the parent’s financial condition, age, and health status. It is important to buy life insurance for parents in India that will provide financial security to you on one of the unfortunate events of your life. 

Factors to Consider While Purchasing Life Insurance for Parents 

As discussed, there is a number of factors one needs to consider before investing in life insurance plans that can vary from one person to another. Read on to know more: 

  1. Age

    If you buy an insurance plan at later ages, you will have to pay a higher premium. However, if you plan to opt for a life insurance plan at an early age, the premium rates will be lower. With the advancement in age, chances of disease also increase. So, the premium rates of life insurance depend on the age when you are buying life insurance.

    • Obtaining Life insurance for Parent over 50 years is quite difficult as few challenges are faced by people of these ages such as in age, health, and higher premiums. Term insurance, permanent life insurance, and life insurance with no medical exam are the best life insurance for parents over 55. 

    • Various companies offer the best life insurance for parents over 60, but choosing one is difficult. Below are some of the terms that should be taken care of while buying life insurance for parents over 60 years of age

    • Check for the maximum renewal age i.e., the age till when the policy gets renewed for the life insurance plans. 

    • Explore if you can avail of increased coverage in the form of riders, critical illness, and more. 

    • Find the medical centers and hospitals where you can utilize your policy 

    • If you are investing in Life insurance for parents over 70, then you do not have to be bank drained or hard working. At these ages, you should seek guidance if you are not sure.

  2. Medical Conditions

    If someone is suffering from a pre-existing ailment, and it requires medical assistance before the lock-in period, they will not be able to pay for the stated medical expenses through the insurance. So, in the case of life insurance for parents with no medical exam, you are required to provide a declaration of being active and healthy to the company. This is majorly for those having poor health and have been denied insurance on a health basis. 

  3. Waiting Period

    This includes the time before which one can determine the funds invested in the plan i.e., called lock period. Always choose a plan that does not offer a long lock period. 

  4. Premium

    The premiums of life insurance policy for seniors would be higher than that of younger people. While it is suggested to buy a policy as soon as possible. Also, senior citizens can easily decrease their premiums by ensuring that they are maintaining a healthy lifestyle. 

Why Do Parents Need Insurance Cover? 

One of the major benefits of investing in a life insurance policy for parents in India is that it can replace their income and offers them much-required financial backup. Also, in case of an unfortunate demise of the senior citizen of the family, their partner, children may face financial difficulties. A life insurance policy helps in avoiding such situations by acting as a network for savings and providing income at the last of the policy term. You should consider buying life insurance plans if you have outstanding debts, financially dependent kids or you want to leave behind a legacy for your children. 

Best Life Insurance for Parents in India

There are different types of life insurance for parents over 60 to help them avoid the financial crunch. All these life insurance plans for parents in India generally fall under 3 categories: Term life insurance plan, Whole Life Insurance Plan, and Retirement Plans. 

  1. Term Life Insurance

    Term insurance plans for parents/senior citizens offer coverage for a specific time period. At the end of a policy term, life coverage ceases to exist. It is a smart plan that provides financial cover to the family members or dependents in the unfortunate demise of the senior member. The insurer pays a fixed sum to the nominee, equivalent to the policy’s sum assured. Moreover, it is a pure life protection plan, the premium is lower making it an ideal choice for parents who have a limited income. Life insurance for parents over 50 comes with a term of 10 to 30 years with pure benefits of death.  

  2. Whole Life Insurance 

    It is a comprehensive form of life insurance that provides insurance coverage to the life assured for his/her whole life i.e., no fixed period of the policy. In case of the unfortunate demise of the assured, the payout gets transferred to the assigned beneficiary/nominee. They have attractive features such as tax benefits, permanent protection, cash value growth, and consistent payment of a premium over the whole policy term. 

  3. Retirement Plan

    These days, various life insurance policies for parents allow them to save through all their working years and draw a pension at the last of the policy term or after acquiring the retirement age. These retirement plans also help them to partially withdraw the accrued sum as needed. This helps parents to maintain their living standards and be independent financially. 

Benefits of Life Insurance for Parents

Life insurance for parents offers several benefits to maximize the overall life coverage and to provide much-needed financial backup. The benefits are: 

  • Parents feel respected and don’t feel lonely and ignored in their old ages. This is very important for them to feel healthy and active, both mentally and physically. 

  • Investing in life insurance for parents ensures financial security and helps in reducing your financial uncertainties in the future. 

  • You can get tax benefits on the income you will receive as per the prevailing laws of the Income Tax Act, 1961. 

  • In case of your unfortunate demise, your dependent parents will get the sum assured amount. In this way, the financial stress will not be transferred instantly to other members of the family. 

  • Some insurers also offer death/funeral expenses, medical expenses, and financial help to pay off other unpaid debts, along with a base life plan. 

  • In the case of a post-retirement, a life insurance plan can offer the benefit of regular income. 

Wrapping It Up!

You must buy life insurance, especially if you have dependent children to take care of. While life is truly valuable, the profits of a life insurance policy can be used to reduce financial hardships. There is no such excuse to postpone purchasing life insurance and you must get insured quickly to secure your family financially today.

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