Age is just a number, especially for those who believe in their lives to the fullest. Individuals who continue to work in their 50s and beyond want to enjoy the happiness of living a retired life soon. Alongside, they do not forget to plan for the well-being of their families.
In the past, retirement benefits and FDs were the most common investment tools for senior citizens to fall back on. However, it is now possible for them to buy online term insurance plans, amongst many other types of life insurance products. They can secure their financial needs by selecting a plan that fits their retirement goals.
Most online term insurance plans are designed for young individuals. But like them, financial security is a concern for senior citizens as well. Although the age limit for policy purchase varies from one insurer to another, you can find different types of life insurance plans suitable for senior citizens.
If you are about to cross the age-bar of 60, here is why you should be open to buying an online term insurance plan.
Financial Security for Your Spouse
An online term insurance plan ensures that your loved ones, including your spouse or children, are not left alone to face any financial crisis. Even at a higher age, you might have children who are financially dependent on your income for their needs. Even otherwise, you have your spouse to take care of in all walks of life – good or bad.
With an online term insurance policy by your side, you can enjoy peace of mind knowing that you have planned for a financial backup for your better half and kids to deal with unexpected times.
The pay-outs from the plan will serve as an income source, at least till the time they become self-reliant. This way, they can easily make a fresh start in their lives and move on for the better.
Support for a Child’s Educational Dreams
Education does give wings to the dreams that children weave in their minds, provided their parents are financially capable of backing them up. In case you have a small family that includes you and your child only, an untoward incident leading to the loss of your life can have an adverse impact on the kid’s life.
One way to ensure that your child flies high in the sky of their chosen career is to buy online term insurance covering your life.
You can nominate the kid as the beneficiary of online term insurance to make him entitled to receive various benefits under the plan. In such a situation, you also need to inform the child about your policy in force so that he/she can file the claim timely.
Ease of Repaying Existing Loans
Maintaining a good standard of living is a tough nut to track amidst the ever-changing inflation rate in India. Like most people, you might have also resorted to various loans to deal with different circumstances in your life. Certainly, the last thing you would want is to let the responsibility of repaying these loans fall upon your family.
Buying online term insurance will be the best decision to plan for easy loan repayment, even in the worst times. Your loved ones will receive a substantial amount as the death benefit, which will cover the unpaid loans in case of your untimely demise. The sum assured under your term plan should cover all the debts you currently have.
Tax Savings for Working Individuals
For working individuals, tax savings are no less than a reward they receive because of efficient tax planning done in every financial year. For senior citizens in good health and prefer to continue working for as many years as possible, buying online term insurance is one way to save taxes.
Depending on the premiums you choose to pay for an online term insurance plan, premiums can qualify for a deduction under Section 80C, within the overall ₹1,50,000 ceiling that section shares with EPF, PPF, ELSS and the rest, and only if you file under the old tax regime. Death benefits are generally exempt under Section 10(10D), but that exemption carries conditions in the Act — check how they apply to your policy rather than assuming every payout is automatically tax-free. This way, you can save an additional amount from living your retired life the way you want.
Do Senior Citizens Qualify for Online Term Insurance?
There are several misconceptions about the eligibility of senior citizens for online term insurance. A reasonable way to understand it is – this eligibility criterion is different for different life insurance companies.
If you feel the need to get life insurance coverage, you can look for insurers who offer term plans to the elderly. Otherwise, you can also opt for guaranteed income plans that have a life coverage component.
It would help if you remembered the fact that online term insurance premium is directly proportional to the insured’s age. Hence, you need to pay a higher amount to buy such a plan. Also, keep a check on the policy terms to get adequate coverage for the life ahead.
