Term Insurance for Senior Citizens

What is Term Insurance for Senior Citizens? 

Term insurance for senior citizens is a term insurance policy specifically designed to cater to the financial needs of elderly individuals. This plan offers coverage for a fixed term, which can be chosen depending on a senior citizen's current age and retirement age. The plan offers the nominee/beneficiary a death benefit, which can be used to pay off outstanding debts or expenses like funeral costs. 

How Does Term Insurance for Senior Citizens Work?

Let’s understand term life insurance for senior citizens with the help of an example: 

Mrs Rai, a 60-year-old retired government employee, has limited income from her savings and pension. She also faced a medical issue which required regular medication and doctor visits. To seek financial security and peace of mind, she bought a senior citizen term insurance plan with a 15-year policy term and a sum assured of Rs. 25 Lakhs. Some years later, Mrs Rai had a heart stroke and incurred medical bills amounting to Rs. 3 Lakhs. Her term insurance plan came to her help, safeguarding her savings from depletion. 

Best Term Insurance for Senior Citizens in India 2024

Here is a list of the best term insurance for senior citizens available in India in 2024 that you can purchase to secure your loved ones.

*The term plan for senior citizens listed above are available for a 60 year old non-smoking, salaried male for a 1 Crore life cover till 75 years of age.

Note: Check out the best term insurance plan in India and choose one that suits your requirements.

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

Best 5 Term Insurance for Senior Citizens in India 2024

Here is a list of the top 5 term insurance for senior citizens in India:

1. ICICI Prudential iProtect Smart

   • Plan provides coverage against death, terminal illness and disability 

   • Option to select accidental death benefit and accelerated critical illness benefit 

   • Flexibility to pay premium amount one time, for a limited time or throughout the policy tenure

   • Choose to receive the benefit amount as a lump sum or as monthly income for ten years or as both. 

   • Choose to get insurance coverage until the age of 99 years.

2. HDFC Life Click 2 Protect Super

   • Inclusive coverage until the age of 85 years at low premium rates.

   • Option to choose from 3 plan options, such as Life, Life Plus and Life Goal.

   • You get back all your premiums paid on survival until maturity with the Return of Premium option. 

   • You also get the Acceleration of Death benefit on diagnosis of specified terminal diseases till the age of 80 years.

   • Option to increase your coverage on certain life stages without medicals with life stage protection benefit. 

3. Max Life Smart Secure Plus

   • You get insurance coverage until the age of 85 years.

   • You will have the option to select from different options of payout at the claim stage, such as lump sum amount, monthly income, and part monthly income and part lump sum.

   • You can receive the cover amount, as ACI (Accelerated Critical Illness), upon diagnosis of one of the 40 specified critical diseases mentioned in the policy.

   • You also get to choose joint life cover, where you can join the policy with your spouse and secure them.

   • You can choose from a list of riders, such as Critical Illness rider, Waiver of Premium rider etc., to add on to your existing policy.

4. Tata AIA SRS Vitality Protect

   • Provides protection with an inbuilt wellness program 

   • Guaranteed 5% discount on your first year of premium.

   • You can also select between the Term or Term with Return of Premium (RoP) options.

   • Discounts on Renewal premium and cover booster, i.e., up to 15 % as per vitality wellness status. 

   • Receive a health check-up every year for free.

5. Bajaj Allianz eTouch

   • Comprehensive cover for you and your family

   • Choose for the benefit to be paid in lump sum or installments

   • 6% discount on 1st year premiums on online purchase

   • Non-smokers have lower premiums compared to smokers

   • Avail tax benefits as per the prevailing tax laws

   Note: You can calculate the premium rate for a term insurance for senior citizens using the term insurance calculator for the desired life cover.

Why is Term Insurance Important for Senior Citizens in India?

Term insurance is a type of life insurance plan for the financial security of your family members that can help them fulfil their financial objectives, even in case you are not with them. A term plan for senior citizens is designed to provide comprehensive coverage, considering their after-retirement needs. The following are the reasons why an individual should consider purchasing a term life insurance for senior citizens.

• Term insurance for senior citizens help secure your dependents' financial future.

• Some of the term insurance for senior citizens comes with the benefit of selecting different payout options. Thus, the policyholder can choose the option of payouts as per one's requirement and suitability.

• The life assured can create a legacy for their family members in the long term using term life insurance for senior citizens.

• Suppose an individual continues to work after retirement and contributes to the family's monthly income. In that case, they should consider purchasing term insurance for senior citizens as it works as an income replacement for the family in case of an eventuality.

• With term insurance for senior citizens, you can get coverage till you turn 99 or 100 years of age.

• Term plan for senior citizens ensures that your spouse is financially stable in the event of your untimely demise.

What are the Features of Term Insurance for Senior Citizens? 

Here is a list of all the features of term life insurance for senior citizens in India 2024: 

1. 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 term plan for senior citizens, the maximum entry age ranges from 55 years to 65 years. Moreover, the maximum maturity age of the policy can go up to 99/100 years.

2. Death Benefit/Life Cover

   As term insurance plans for senior citizens is a pure protection plan, the only death benefit is offered to the policy's beneficiary in case of the unfortunate demise of the life assured during the policy's tenure. However, suppose a person has purchased TROP (Term Return of Premium Plan), in that case, the entire premium paid during the policy's tenure is returned to the life assured at the time of maturity of the policy.

3. Premium Rate

   Even though term insurance plans are considered the most affordable life insurance policy to purchase, the premium rate of the term insurance for senior citizens is determined based on the age of the insurance buyers. Therefore, if an individual purchases a term plan at a later stage of life, then he/she will likely have to pay a higher premium amount.

   Flexibility in Pay-out Options: Term plan for senior citizens have flexible payout options so that if your loved one needs a regular source of income, you can plan for it. And, if lump sum 

4. Medical Test

   While purchasing term insurance for senior citizens, the insurance buyer may need to take the medical test so that the insurance provider can make sure that the policy buyer does not suffer from any pre-existing medical condition. If the life assured does not undergo any medical test, he/she will have to provide a declaration of being healthy to the insurer. One should not hide any facts related to his/her health when purchasing a suitable term plan for senior citizens.

5. Riders/Add-ons 

   Various important term insurance riders are offered under the term insurance plans for senior citizens to enhance the term insurance policy coverage. 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 for the policy.

Benefits of Term Insurance for Senior Citizens

Here is a list of benefits of buying term insurance for senior citizens in India:

1. Family’s Security

   Term insurance for senior citizens will pay out the sum assured or the death benefit to the family in case of the policyholder’s untimely death during the policy term. The family can use this benefit amount to pay their rent and child’s fees and cover other monthly expenses.

2. Financial Independence

   The maturity payout received from TROP plans can help provide the financial stability required in the absence of the monthly income post-retirement.

3. Fulfil Financial Goals

   Your family can use the benefit amount from term insurance plans for senior citizens to fulfill their financial goals in your absence, like paying for the child’s higher education or wedding.

4. Pay off Loans and Liabilities

   In case you have taken any student, business, or other loans, your family might be burdened trying to pay off the remaining debt in your absence. The death benefit amount can help them take care of such liabilities.

5. Create a Legacy

   With term insurance for senior citizens, you can create a legacy for future generations in your absence. You can buy whole life insurance to ensure guaranteed financial benefit for your family in the event of your unfortunate absence.

6. Enhancement of Life Cover

   Life cover of the term plan for senior citizens can be enhanced with riders like critical illness, hospicare, terminal illness, accidental death, accidental total and permanent disability, and waiver of premium riders. You can also enhance the life cover using the life stage benefits at different milestones like marriage, childbirth, or home loans.

7. Tax Saving Benefits

   You can claim term insurance tax benefits under sections 80C, 80D, and 10(10D) of the Income Tax Act, 1961, as per the prevailing tax laws.

How to Choose the Best Term Insurance for Senior Citizens in India?

Let us take a look at the points to keep in mind while selecting the best term insurance for senior citizens in India:

1. Select Suitable Life Cover

   While selecting suitable term insurance plans for senior citizens, you need to ensure that you opt for the right life cover. This is because this amount will be paid to your family in your absence. Thus, you should make sure that the life cover is enough to cover their financial needs in your absence.

2.  Check the Claim Settlement Ratio

   The CSR of the company gives us an insight into the company’s claim settlement capabilities in the past year. Therefore, you should always opt for a term plan for senior citizens from a company with a high CSR ratio of over 95%.

3. Add Relevant Riders

   Adding the relevant riders can enhance the base cover of your term insurance for senior citizens at nominal premiums. Hence, it is suggested that you go through the list of available riders and add the relevant riders to the base term life insurance for senior citizens.

Riders Available With Term Insurance for Senior Citizens

Here is a list of all the riders available with term insurance plans for senior citizens in India:

1. Accidental Death Benefit

   This rider provides an additional amount on top of the base sum assured of the term plan for senior citizens on the accidental death of the policyholder during the policy term.

2. Terminal Illness Benefits

   On the diagnosis of a terminal illness, the insurer will pay a part or the entire life cover in advance to help take care of the hefty medical bills and seek top-class treatments.

3. Accidental Total Permanent Disability

   Under this term insurance for senior citizen riders, the additional amount will be offered to the life assured in case of an accidental total permanent disability during the policy term. 

4. Critical Illness Benefits

   In case the policyholder is diagnosed with a critical illness covered under the term insurance for senior citizens, the insurer will pay the rider sum assured to help cover the treatment costs.

5. Waiver of Premium Benefits

   On the diagnosis of a critical illness or accidental total permanent disability, if the policyholder suffers a job loss, the insurer will waive off all the term plan for senior citizen premiums.

Why Should You Buy Term Plan For Senior Citizens Early?

Once you understand what is term insurance, it is fairly clear that the premium rate of a term plan increases with age. Not only that, the risk of premiums increasing due to age-related illnesses also increases further the older you get. Thus, if you want to secure a large life cover for your loved ones at affordable premiums, you need to buy term insurance plan for senior citizens early.

Things To Consider While Buying Term Plan for Senior Citizens

It is easy to buy term plan for senior citizens: however, here is a list of things that one should needs to keep in mind to choose the best term plan for senior citizens in India 2024:

• As you age, the premium amount you pay typically rises to address the increased risk associated with health conditions and illnesses. Nevertheless, senior citizen term plans provide elevated coverage, offering a means to safeguard your family without worrying about financial uncertainties.

• Senior citizen term insurance plan comes with whole life coverage, enabling senior citizens under a wider age group to avail of term insurance.

• Several life insurance providers extend the advantage of requiring minimal medical check-ups and documentation for senior citizens who have no health conditions or family medical history. However, this is contingent upon the specific terms and conditions outlined by the insurer in individual term plans.

• You can buy the best term plan for senior citizens online by comparing different policies and choosing the one that meets your needs. Tata AIA Life Insurance not only offers a convenient online process but also enables you to calculate term insurance premiums online.

FAQs