As we talk about a term insurance plan, it is highly suggested that we should buy it at a younger age. What if you could not do it when you were young and now you are a senior citizen? Well, everything comes with pros and cons, and so is buying a term insurance plan at a later stage of life. Let us discuss some of the advantages of term insurance for senior citizens here today:
We mostly consider the senior citizens to be partially or fully dependent on their children. And if your spouse has been dependent upon you her entire life, it can be hard for her to cope with the situation. If you suddenly pass away, life can turn upside down for her. When you buy term insurance, she can at least be assured that she can carry on with her lifestyle even when you are not around anymore. This will give her a sense of security and financial freedom that she does not have to ask for money from anyone after your demise.
Financial support to the children
Your children don’t necessarily have to be financially independent when you are taking your retirement. And if you pass away around that age, it can be hard for your children to deal with regular life. However, the sum assured can help them pay the bills and get the required financial assistance.
Debt and loans
Many of us take loans and pass away before time. As a result, the family has to bear the challenges of paying off the debts. This can create a lot of imbalance in their budget. However, the amount of sum assured can be of real help to the family to clear the debts when you are not around. Also, your family will thank you for taking this step in life.
Leaving a legacy behind
We all want to give the best life to our family. And if you think the returns on your investment may take time to get mature or will not be enough for your family, you must consider a term insurance policy. You might have to pay high premiums till the time you are alive but your family will get a huge amount of sum assured on your demise. However, it will only happen if you pass away within the term insurance policy tenure.
Things senior citizens need to know about buying a term insurance policy
Purchasing a term insurance policy is not as easy for senior citizens as it is for young individuals. Therefore, these are some of the points that they need to know about.
- Not all life insurance companies will be open to the idea of offering a term insurance policy to a senior citizen.
- You will have to undergo several types of medical tests. Some of them may even be conducted at the labs. This sometimes becomes a tiring process.
- The premiums rates of the term insurance plans for senior citizens are much higher than one can imagine. Therefore, you need to have that kind of income so that you can consistently pay the premiums on time.
- You may miss out on some quite beneficial riders.
Although there are challenges, term insurance policies are always helpful to the family of the policyholders. You can at least be assured that your family will not have to go through financial hurdles in your absence. To find the several options of term insurance policies for senior citizens, you can take a look at the website of IIFL. You can compare them and find out the one that is perfect for you and your loving family.
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