It is always said that you should opt for a term insurance plan in your youth but that’s not always the case. A term plan is also suitable for senior citizens that have a dependent family or other financial obligations. If you are a senior citizen considering getting a term insurance plan, here are some of the benefits of buying one.
What Is Term Insurance?
Term insurance is a policy which provides the policyholder with a life cover in return for paying the premiums for a fixed policy term. A term policy is a pure life cover plan that gives out very high sum assured on the death of the insured during the term. But there is no maturity benefit that can be availed in such a life insurance plan. It suits people who have a dependency and need to assure their family is taken care of. You can get premium quotes from several insurers with higher claim settlement ratio and choose a term plan which gives you the most benefits.
Benefits of Buying Term Plan for Senior Citizens
Term insurance is a lucrative plan for senior citizens if they have dependent children or a spouse. Here are some benefits of getting a term plan for senior citizens:
In the Case of Debts
If you have any mortgage or personal loans to your or your spouse’s name, then a term plan is the perfect way to go. In case something were to happen to you, your spouse would have to bear the brunt of repaying the loans. By getting term insurance, you are securing your loved ones with financial backup in the event of an unfortunate incidence. The lump-sum death benefit paid to your beneficiary can be used to pay off any debts and the rest can be used as per their liking.
You could have children who are dependent on you having no financial help. Hence, a term plan ensures they are taken care of and do not have to rely on other family members to make ends meet. This could also be the case if your spouse isn’t financially stable and hence, the lump sum amount could help in safeguarding your children’s future.
In the case where your spouse is a homemaker or isn’t financially independent, this kind of life insurance aims to give them the liberty to be self-sufficient. You will be able to live carefree as you know that your loved one is taken care of and is secure if something ill-fated were to happen.
If you are nearing the retirement period or if your spouse has retired, term insurance is a good option which provides stability and reassurance to your family. You could get a term plan with a sum assured that can fulfil the requirements of your loved ones.
Leaving Behind a Legacy
Even if your family is well-settled and doesn’t require financial help, extra money never goes in vain. By getting a term plan, you could leave a legacy behind for your family to use for other purposes.