Life insurance for senior citizens

One of the best ways to secure the future of senior citizens is by purchasing a life cover for them. A suitable life insurance plan will make them feel financially and mentally secured. So, if you are willing to buy a life cover for senior citizens, you can go through the below-mentioned information to choose the best plan.

What are the different types of senior citizens' life insurance plans?

Term Life Insurance

Term life insurance plans are the plans that offer coverage for a specific time. Death benefits are paid to the nominee in the event of death during the policy period. Under this plan, a policyholder can also choose the tenure, the sum assured, and payment frequency based on their needs. Such plans are generally more flexible and affordable than whole life insurance plans. 

Whole Life Insurance

This is a comprehensive form of insurance that provides insurance coverage to the policyholder during their entire life i.e. there is no fixed policy period. Upon the death of the policyholder, the insurance payout gets transferred to the designated nominees/ beneficiaries. These policies come with a savings component, along with the original insurance coverage. That is why whole life plans are relatively costlier than term insurance plans. 

Retirement Plans for Senior Citizens

Life insurers offer immediate annuity plans specifically suited for senior citizens so that they can live without having to worry about finances. The income provided by these plans will continue throughout their life, and in his/her absence, it will be offered to their spouse.

Some of the key features of a senior citizen retirement plan are:

  • It ensures financial independence after retirement through regular pay-outs.
  • There is a wide range of annuity payout frequencies, i.e., monthly, quarterly, semi-annually, and annually that can be selected by the customer.
  • As these plans are configured specifically for senior citizens, the entry age under these plans usually starts from 45-55 years.
  • Such plans offer tax benefits under section 80CCC of the Income Tax Act, 1961.

Benefits of Senior Citizen Life Insurance Policies

  • Senior citizen's insurance policies come with many added benefits apart from providing financial security.
  • Seniors feel honored and financially protected in their old age, making them lead a happy and healthy life.
  • These policies will also help policyholders to avail of the income tax redemption as per the Income Tax Act, 1961.
  • Such policies will take care of the seniors even in your absence without passing the burden to extended family members.
  • These policies can provide a source of funds for funeral and death expenses, medical expenses, and other unpaid debts such as mortgage payments, credit card bills, and personal loans.
  • They also provide social security benefits in the form of an income stream (annuity) post-retirement.

Reasons why senior citizens need life insurance

Medical expenses: Most of the people are prone to different kinds of health ailments, especially during their old age. If at that time, they do not have a comprehensive health insurance plan, they may end up spending money from their savings. A life insurance plan with good maturity proceeds may come in handy in such a situation.

Dependents: If an older age individual has dependents in the form of spouse, children, or grandchildren. In this case, it is a good idea to purchase a life insurance cover to offer protection to them in your absence.

Living expenses: Even after retirement, people need a regular income source to maintain their lifestyle. The regular pay-outs from annuity plans can be used to take care of one's living expenses. With a proper life insurance cover, people can receive maturity benefits and take care of their day-to-day living expenses.

Loans and debts: It might be a possibility that senior citizens may have some outstanding debts even at the time of their retirement. So, to rescue such situations, they may need a life insurance plan to pay for their outstanding loans and debts without putting any stress on their family.

How to Choose the Right Senior Citizen Life Insurance Plan?

Choosing the most appropriate insurance plan for the elder ones can be a cumbersome task if you do not know the right process. However, you can compare the different senior citizen plans online and then finalize your decision. Also, evaluate the pros and cons of each policy, keeping in mind your exact requirement. After assessing and understanding the various aspects, you need to compare costs and benefits to arrive at the right choice.

How to Apply for Senior Citizen Insurance Plans?

Applying for senior citizen insurance plans is very easy, once you finally decide which policy you are going to buy. You can either apply for it online or you can also contact your insurer for the same. Alternatively, you can also compare different senior insurance policies, i.e., through the online portals which will help you compare and choose among a variety of insurance plans dedicated only for the seniors. You can then go ahead and apply for the policy at the insurer’s website. This helps save time, money, and effort; it also lets you make informed choices by reading through reviews of those who have already availed different policies.

Is it Possible to Get an Insurance Cover for Super Senior Citizens?

Yes, besides senior citizens, you can also get an insurance cover for super senior citizens who are above the age of 80 years.  However, the availability of life insurance at this age depends on their current state of health.

What is the Average Cost for Senior Citizen Life Insurance Plans?

The average cost of senior citizen insurance policies depends on several factors such as age, health, lifestyle, family history, etc. Seniors with healthy lifestyles can avail of better coverage at lower premiums. So, it is better to cross-check and compare multiple senior citizens' life plans from different insurers to get at the lowest possible cost.