As a pure protection plan, the term insurance plan provides risk coverage to the insured’s family against any type of unforeseen event. Thus, if the insured person dies due to an unexpected event during the policy’s term, a death benefit is paid to the policy’s beneficiary.
The payout provided by the term plan can be used as an income replacement for the insured’s family and can assist the family in meeting their short-term and long-term financial needs. Individuals in their 50s and 60s can purchase a variety of term insurance plans.
It is always recommended that one should be aware of what is a term plan and why it is a good option before investing in one.
What Is A Term Plan?
Term insurance is a type of life insurance policy that provides financial protection for a set period. The term plan offers financial security to the policy’s beneficiary in the event of the untimely death of the life assured during the policy’s term. A term insurance policy provides life insurance coverage in exchange for a fixed premium paid for a set “term” of the year.
A term plan not only provides financial security for your family but can also cover future expenses such as your child’s higher education, marriage, and so on.
Term life insurance provides the most life coverage for the least amount of money in premiums throughout the policy. For example, an individual can purchase an Rs. 1 Crore life insurance policy at a monthly premium of Rs. 411. Some insurance companies will also cover permanent or partial disability if the policyholder’s regular income is interrupted.
Why Should We Buy A Term Plan For Senior Citizens?
The following are some of the reasons why a senior citizen should consider purchasing a term plan.
- In a term plan, the death benefit is paid to the policy’s beneficiary in the event of the insured person’s untimely death during the policy’s term. This payout can be used to cover their liabilities and pay off any debts they may have.
- Term insurance plans can help you secure your dependents’ financial future.
- Some term insurance policies include the option of choosing from a variety of payout options. As a result, the policyholder has the option of selecting payouts based on their own needs and suitability.
- In the long run, the insured can provide a financial cushion.
- Suppose a person 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 because it will serve as an income replacement for the family in the event of an emergency.
Best 5 Term Plans For Senior Citizens In India
Some of the most popular top term insurance plans for senior citizens are listed below. Have a close look at these plans.
1. Pension 4Life Plan – Canara HSBC Oriental Bank of Commerce
Canara HSBC Oriental Bank of Commerce Life Insurance has introduced the Pension 4life Plan, a term plan designed to provide financial independence to retirees, those nearing retirement, and those who have retired. In exchange for a purchase price, the customer receives a wide range of annuity options under this plan.
The plan holder will have up to seven annuity options to choose from, as well as the option of a joint life plan. The plan also provides flexibility for NPS (National Pension Scheme) subscribers to choose between a reverse mortgage or an annuity.
Key Features
- Guaranteed lifetime income credited directly to your bank account to meet your needs.
- Options for banks and financial institutions in terms of annuity payments for their Reverse Mortgage commitments to homeowners.
- In the event of your death, your family will be provided with a safety net in the form of a refund of the purchase price.
2. Aegon Life iTerm Plus Plan
The Aegon Life iTerm Plus Plan is an excellent term plan for senior citizens, providing financial security to the insured’s family in the event of an emergency. Along with insurance coverage, the plan includes various built-in benefits such as accidental death and critical illness.
Key Features
- The plan includes the option of continuing insurance coverage until the age of 80.
- Nonsmokers and female policy buyers are eligible for a premium rate reduction under the policy.
- The death benefit is paid to the policy’s beneficiary in the event of the insured’s untimely death during the policy’s term.
3. LIC e-Term Plan
The LIC e-term plan is a comprehensive protection plan that protects the insured’s family’s financial future in the event of a disaster. The plan can be purchased online quickly and easily.
Key Features
- The policyholder has the option of selecting a policy term ranging from a minimum of 10 years to a maximum of 35 years.
- Along with the benefit of insurance coverage, the insured can also benefit from the tax break provided by the policy. The premium paid for the policy is tax-exempt up to a maximum of Rs.1.5 lakhs under Section 80C of the Income Tax Act.
- The policy provides only a death benefit as a pure protection plan.
4. Max Life Insurance Online Term Plan Plus
Max Life Insurance Online Term Plan Plus is yet another fantastic term life insurance policy for senior citizens that can be purchased online quickly and easily. The plan includes three different variants of cover options from which to choose. The plan protects the insured’s family financially in the event of an emergency.
Key Features
- As it is an online term plan, the policy purchase process is very simple and easy.
- All three types of life insurance provide coverage to the insured up to the age of 85.
- The policy provides add-on rider benefits to supplement the plan’s coverage.
5. SBI Life Poorna Suraksha Plan
This is a non-linked term insurance plan for senior citizens that includes critical illness coverage. In the event of an emergency, the plan provides comprehensive coverage to the insured’s family.
Key Features
- The policy’s premium is fixed for the duration of the plan.
- The policy has a maximum maturity age of 75 years.
- The policy provides a premium waiver benefit in the event of a critical illness diagnosis.
Wrapping It Up
As you approach retirement, the most important thought on your mind is to continue living a secure and comfortable life without relying on others. Everyone wishes to be financially self-sufficient and to live a carefree and relaxed life. This is especially important in your golden years after retirement because, after so many years of hard work, money should not be a consideration in deciding how to spend these years.
So there you have it: some of the best term plans for senior citizens in India. To make the best decision, compare the features and benefits of each term plan.