As a pure protection plan, the term insurance policy offers risk cover to the family of the insured against any type of eventuality. Thus, if the insured person dies due to an eventuality during the tenure of the policy, then a death benefit is paid out to the beneficiary of the policy. The payout offered by the term plan can be used as an income replacement for the family of the insured and can help the family to meet their short-term and long-term financial requirements.

While, in the past, term insurance plans were usually marketed to the younger policy buyers, these days, life insurance providers also offer term plans for the senior citizens. There are many term insurance plans, which can be purchased by individuals in their 50s and 60s. Moreover, these term insurance policies also provide insurance coverage up to 75-80 years of age.

Further here we have discussed in detail why one should consider buying term insurance for senior citizens. Moreover, we have also given some insight into the most popular term insurance

Why Should Buy Term Insurance for Senior Citizens?

The following are the reasons why an individual should consider purchasing a term plan for senior citizens.

• In a term plan, the death benefit is paid to the beneficiary of the policy in case of an uncertain demise of the insured person during the tenure of the policy. This payout can be used to take care of the liabilities and clear any debts that they might have.
• Term insurance plans help to secure the financial future of your dependents.
• Some of the term insurance policies come with the benefit of different payout options. Thus, the policyholder can choose the option of payouts as per one’s own requirement and suitability.
• The insured can create a financial cushion in the long-term.
• If an individual continues to work after retirement and contributes to the family’s monthly income, then they should consider purchasing term insurance for senior citizens as it will work as an income replacement for the family in case of an eventuality.

Features of Term Insurance for Senior Citizens

• Age Limit- The minimum entry age offered by most of the term plans is 18 years, whereas the maximum age at entry of the policy varies from insurer to insurer. However, in most of the term insurance plans the maximum entry age ranges from 55 years-65 years. Moreover, the maximum maturity age of the policy can go up to 85 years.
• Insurance Coverage- As a term insurance plan for senior citizens is pure protection plans only death benefit is offered to the beneficiary of the policy in case of the unfortunate demise of the insured person during the tenure of the policy. However, if a person has purchased TROP (Term Return of Premium Plan), then the entire premium paid during the tenure of the policy is returned to the insured at the time of maturity of the policy.
• Premium Rate- Even though, term insurance plans are considered as the most affordable life insurance policy to purchase. The premium rate of the term plans is determined on the basis of the age of the insurance buyers. Therefore, if an individual purchases a term plan at the later stage of life, then he/she will likely have to pay a higher premium amount of the policy.
• Medical Test- While purchasing term insurance for senior citizens, the insurance buyer may need to take the pre-policy medical test so that the insurance provider can make sure that the policy buyer does not suffer from any pre-existing medical condition. In case the insured person does not undergo any medical test then he/she will have to provide a declaration of being healthy to the insurer. Make sure that you don’t hide any facts related to your health at the time of purchasing the policy.
• Riders- Rider benefits are offered under the term plans for the senior citizen to enhance the coverage of the policy. The riders offered by the insurer may vary from plan to plan. the policyholder can purchase the add-on rider by paying an extra premium of the policy.

Best Term Insurance Plans for Senior Citizens

The following are some of the popular top term insurance plans for senior citizens. Let’s take a look at these plans in detail.

 

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

LIC e-Term Plan

LIC e-term plan is a comprehensive protection plan, which safeguards the financial future of the family of the insured in case of any eventuality. The plan can be purchased online in a simple and hassle-free way. The following are the features and benefits offered by the policy.

Features and Benefits of LIC e-Term Plan

• As it is an online term insurance plan, the process of policy purchase is very easy and hassle-free.
• The policy provides special discounts for non-smokers and female policy buyers.
• As a pure protection plan, only death benefit is offered under the policy.
• Along with the benefit of insurance coverage, the insured can also take advantage of the tax benefit offered under the policy. The premium paid towards the policy is tax exempted up to the maximum limit of Rs.1.5 lakhs U/S 80C of IT Act.
• The policy offers coverage till the age of 75 years
• The policyholder has the flexibility to choose the term of the policy ranging from a minimum of 10 years to a maximum 35 years.

IDBI Senior Citizen Term Insurance

This is a specifically designed term insurance plan for senior citizens. The plan offers comprehensive coverage to the senior citizens and provides financial security to the family against any type of eventuality. Let’s take a look at the features and benefit offered by the policy.

Features and Benefits of IDBI Senior Citizen Term Insurance

• This plan is specifically designed to cater to the requirements of the individual above 50 years of age.
• The insurer promises to extend the coverage of the policy without making the policyholder go through any medical test.
• The policy offers a maximum coverage up to Rs.5 lakh. It is applicable after the completion of 2 policy years from the date of commencement.
• In case of the demise of the insured within 2 years of policy initiation, 125% of the total premium paid is returned to the nominee of the policy.
• The policy offers the benefit of tax exemption on the premium paid towards the policy up to the maximum limit of Rs.1.5 lakhs U/S 80C of IT Act.
• As a term insurance plan, it offers only death benefit and no maturity benefit is offered under the policy.

Max Life Insurance Online Term Plan Plus

This is a comprehensive term life insurance for senior citizens, which can be purchased online in an easy and simple way. The plan comes with three different variants of cover options to choose from. The plan provides financial coverage to the family of the insured against any type of emergencies. Here are the features and benefits of the policy.

Features and Benefits of Max Life Insurance Online Term Plan Plus

• The plan offers the benefit to choose from three different cover options i.e
  • Basic Life Cover
  • Life Cover + Monthly Income
  • Life Cover + Increasing Monthly Income
• All three different option of life cover provides coverage to the insured up to the age of 85 years.
• The plan offers two different options of premium payment i.e.
  • Regular premium payment option.
  • Pay till the age of 60 years.
• The policy offers the benefit of tax exemption on the premium paid towards the policy up to the maximum limit of Rs.1.5 lakhs U/S 80C of IT Act.
• Add-on rider benefits are offered under the policy to enhance the coverage of the plan.
• As it is an online term plan, the process of policy purchase is very simple and hassle-free.

SBI Life Poorna Suraksha Plan

This is a non-linked term insurance plan for senior citizens, which comes with an in-built critical illness cover. The plan provides comprehensive coverage to the family of the insured in case of any eventuality. The following are the features and benefits of the policy.

Features and Benefits of SBI Life Poorna Suraksha Plan

• The plan offers the benefit of increasing critical illness.
• In case of a diagnosis of any critical illness, a premium waiver benefit is offered under the policy.
• The plan adjusts the sum assured automatically between life and critical illness on completion of every policy year.
• The premium of the policy is fixed throughout the tenure of the plan.
• The policy offers the benefit of tax exemption on the premium paid towards the policy up to the maximum limit of Rs.1.5 lakhs U/S 80C of IT Act.
• The maximum maturity age offered by the policy is 75 years.

Aegon Life iTerm Plus Plan

This is a comprehensive term insurance plan, which provides financial security to the family of the insured in case of emergencies. Along with the benefit of insurance coverage, the plan offers different in-built benefits such as accidental death and critical illness. Let’s look at the features and benefits of the policy.

Features and Benefits of Aegon Life iTerm Plan

• The plan offers the option of insurance coverage until the age of 80 years.
• The plan offers the option to choose coverage for 10 basic critical illnesses and 38 enhanced critical illnesses.
• In the case of permanent disability and critical illness, the benefit of waiver of premium is offered by the policy.
• The tax benefit is offered under section 80C of the Income Tax Act.
• The policy offers a discount on premium rates for non-smokers and female policy buyers.
• Under the option of increasing life cover, the insured can increase the life coverage of the policy.
• The death benefit is offered to the beneficiary of the policy in case of an uncertain demise of the insured during the tenure of the policy.

You May Also Like Other Term Insurance Plans

• Term Plan with Return of Premium
• Group Term Insurance
• Term Insurance without Medical Test
• Term Insurance Benefits
• Pradhan Mantri Jeevan Jyoti Bima Yojana