Is it worth buying life insurance for senior citizens…?
It may or may not…
As it totally depends on your scenario…
If you have people dependent on you or have debt which needs to be paid then it totally make sense to buy insurance.
People buy insurance so that their family can lead a comfortable life even after their death.
Thus if they have any debt which remained unpaid during their lifetime can now be paid with the claim amount.
Thus with insurance by your side your family would not have to go through any financial trauma.
Under what circumstances would you want to buy life insurance for senior citizens…?
If you have any financial obligation then you may want to consider buying a plan for yourself. This way:
“You will not leave your dependents in lurch even if life leaves you”
Thus consider buying life insurance if you have:
They not only include your kids but your wife as well.
It’s a rare scenario that your kids will financially depend on you in your old age. But your wife may surely will. She may be dependent on your pension and may not have any other source of income.
Thus here it will become all more important to financially secure your life so you could secure her future.
2. Work after retirement:
If you work even after your retirement then, you would want to secure the contribution in family’s income. This will give financial comfort to them and peace of mind to you.
Though the loss of life will be irrevocable but they will be saved from getting into any financial hardships.
3. Unpaid liabilities:
You may not want to force your liabilities onto your family, who won’t even have income to cover it.
If you have major debt standing on your head like car loan or home loan then try to secure enough cash that it can be paid off. But sometimes it is not possible either because of lack of money or you have other commitments to fulfill.
Here is where your life insurance will work wonders. Just buy enough cover and your liabilities will be taken care off.
If you consider yourself under anyone of the above given scenarios then life insurance for senior citizens is meant for you.
Now that you understand the importance of buying life cover for seniors, here is what you might be thinking…
Is it easy buying a policy for people over 60’s or 70’s…?
And the answer to that is…
Many a time’s companies don’t provide coverage for people over 70’s. And other times the premium they charge is good enough to eat up your entire budget.
To buy a simple term insurance plan for senior citizens, here is the max age limit. If you are above this limit then, you won’t be eligible to buy a plan from them.
Take a look,
|Life insurance for Senior Citizens|
(Term insurance Plan)
|Maximum eligible age|
|ICICI prudential||iProtect||70 years|
|HDFC Life||Click2Protect Plus||75 years|
|Max Life insurance||Term Plan||70 years|
|Bajaj Allianz||iSecure||70 years|
|SBI life insurance||eShield||65 years|
|Aegon Religare life insurance||iTerm||75 years|
|Bharti Axa life||eProtect||75 years|
|Birla Sun Life insurance||Protect@Ease||80 years|
|Reliance Life insurance||Online Term||75 years|
|India First life insurance||Anytime Plan||70 years|
To stay insured for long you would want to choose a company that offers max maturity age.
Thus if you are planning to buy term plan anytime soon then Birla sun life would be a good fit as it offers max maturity age of 80 years.
But again this should not be your only decision driving factor as you may also want to consider:
- Affordability of premium paid,
- Flexibility in paying premium,
- Riders, that take care of critical illnesses,
- Online flexibility,
- Claim settlement ratio etc. For full list of what factors to look at before buying term plan, take a look here.
Now that you know what it takes to buy a plan, you may want to consider a policy that is affordable and doesn’t shake up your finances.
But since you are buying insurance in your old age, things may not come easy to you.
Check out the list below to find how much you have to shell out to buy a cover of Rs.1 Cr. if you are in your 50’s or even in 60’s.
The quotes given below are for 10 year tenure as there are not many companies offering longer term plans.
|Life insurance for Senior Citizens|
|Company||Product Plan||Claim Settlement rate||Premium you have to pay|
|Pnb Metlife||Mera term plan||92.9%||Rs. 27,038/-||Rs. 38,675/-|
|Edelweiss Tokio||MyLife+||57.1%||Rs. 31361/-||Rs. 45,110/-|
|Bharti AXA||eProtect+||80.9%||Rs. 32117/-||Rs. 61,007/-|
|Birla Sun Life||Protect@Ease||95.5%||Rs. 35967/-||Not Known|
|HDFC Life||Click2Protect plus||90.5%||Rs. 37775/-||Rs. 60,836/-|
|Reliance||Online Term||83.8%||Rs. 41219/-||Not Known|
|Max Life||Online Term plan||95.5%||Rs. 42523/-||Rs. 66,120/-|
|Aegon Religare||iTerm||89.8%||Rs. 47994/-||Rs. 81,738/-|
|SBI Life||eShield||89.4%||Rs. 50,195/-||Rs. 79,664/-|
|Bajaj Allianz||iSecure||91.9%||Rs. 58317/-||Rs. 90,551/-|
|ICICI Pru||iProtect||93.8%||Rs. 59622/-||Not Known|
Did you see how much difference your age brings in your insurance premium…!
That’s why it is always advised to buy when young. Early movers get lots of advantages like:
- Affordable premiums,
- Stable payouts and
- Higher sum assured.
But since you are buying in your seniority then looking at the kind of premium you would have to shell out, buy only when it is strictly unavoidable.
If you can afford then do buy it, otherwise:
“Delay will only bring PROBLEMS, lots of it, not only for you but your family as well”