Term insurance is an ideal financial tool for an individual to get financial coverage for a specific duration. Buying a term insurance plan at a young age is believed to be a good choice as the premium cost is usually low and coverage can be availed for a long time.
What is Term Insurance for Senior Citizens?
If an individual didn’t buy a term plan at a young age they can still opt for one if they are a senior citizen. Term insurance for senior citizens is a plan for elderly people to cover their financial requirements in old age. The financial requirements include paying off ongoing loans, and coverage for critical illness or medical costs. The cost of premiums is high for senior citizens. Let’s take an example of how term life insurance works for a senior citizen.
Suppose Mr. Verma whose age is 62 works at an organization. He is suffering from an illness that requires regular checkups and doctor visits. He has a limited amount of savings with him. He buys a term insurance plan with a coverage amount of Rs 25 lakh. He suffered from a medical stroke after a few years and was rushed to hospital. He received a hospital bill of Rs 2.5 lakh. Thanks to the term plan which covers the entire hospital bill.
The term insurance plan will also provide a death benefit to the nominee of Mr. Verma for the rest of the amount. It provides financial security and coverage to the family members of Mr. Verma.
5 Tips to Choose the Best Term Plan for Senior Citizens in India
Choosing the best term insurance plan for senior citizens in India is a crucial task. An individual has to look at various key parameters while opting for a term plan including coverage amount, cost of the premium, etc.
Here are certain tips that can help a senior citizen choose the best term plan for him:
1. Choose appropriate coverage
When choosing a term insurance plan for senior citizens one should select an appropriate coverage amount. The coverage amount should be selected based on various parameters including the income level, number of dependents, age of the individual, total monthly expenses, health conditions, etc.
Generally, people make the mistake of choosing an inappropriate coverage amount. Assessing the coverage amount based on the above factors is an ideal choice for a senior citizen as it helps them assess their financial needs. An appropriate coverage amount provides financial help to your dependents in your absence.
2. Choose the right insurance provider
While choosing the term insurance for senior citizens one has to choose the right insurance provider. An individual can access the appropriate insurance provider based on various factors including claim settlement ratio, market reputation, customer support, financial capabilities, etc. These parameters should be considered to make an ideal choice. One should not just get attracted by fancy advertisements while looking for a term insurance plan.
An insurance provider with a high claim settlement ratio, easy customer support, and a good customer retention ratio should be considered. Opting for the right insurance provider helps in the easy claim settlement process for your loved ones.
3. Never hide any crucial information from insurance provider
People generally hide important information from the insurance provider such as smoking habits, alcohol consumption habits, any serious illness they are suffering from, etc. Hiding this important information may cause a problem during the claim settlement process.
While processing the claim an insurance company verifies all the information provided by the insured and may reject the claim if they find something wrong or fishy. By disclosing the necessary information you can make sure that insurance companies don’t reject your claim.
4. Make sure to add on necessary riders
While buying term insurance for senior citizens one should add necessary riders to provide more coverage to the insured. The riders that an individual is opting for should be relevant as they may add to the cost of the premium.
One can consider various necessary riders such as critical illness riders and personal accident riders. A critical illness provides you coverage against critical diseases such as cancer, kidney failure, stroke, etc. A personal accident rider provides coverage for disability or death during an accident.
5. Go through the policy documents thoroughly
An insured must go through the policy documents thoroughly to check what is covered and what is not covered in their term plan. They must check various essential things such as premium amount, tenure of the policy, frequency of amount, coverage amount, etc.
Moreover, if an individual has any doubt they should get in touch with customer support and clear the same.
Best Term Insurance Plan for Senior Citizens in India
Here is the list of the best-term plans for senior citizens in India. The plans listed below are available for salaried males above 65 years who are non-smokers.
1. Tata AIA SRS VItality Protect
This plan offers Rs 50 lakh coverage to senior citizens. Terminal illness cover provides 75% of the sum assured upon hospitalization and the remaining 25% upon the policyholder’s death. The monthly cost for this insurance plan is Rs 30,613, while the yearly cost totals Rs 3,49,693.
2. ICICI Prudential iProtect Smart
This plan offers coverage of Rs 50 lakh to senior citizens at a monthly premium of Rs 24,102 or a yearly premium of Rs 3,46,693. The sum assured is either paid at the time of death to the nominee or incurable illness. Moreover, future premiums are waived in this plan to minimize the load.
3. India First Life Guaranteed Protection Plus
Under this term insurance plan coverage of Rs 50 lakh is provided to senior citizens in exchange for a monthly premium of Rs 67,863 or a yearly premium of Rs 7,80,039. It also provides an option of premium waive-off in certain cases.
Conclusion
Term Insurance is one of the best investments to secure the future of your loved ones. While choosing the best term plan for senior citizens one has to keep the above key factors in mind. To choose the best term insurance plan on PolicyX. It is an IRDA-approved insurance comparison portal that helps you choose an ideal plan that fits your needs.
