A term plan is a great life insurance product, which offers an affordable way to protect the financial future of your family. This type of life insurance policy is recommended for everyone. However, there is a belief that term insurance for seniors does not make any sense. People might say that a senior citizen has to pay a higher premium or that the death benefit might not be sufficient. However, there are many scenarios, wherein a senior citizen might have to buy a term plan.
- Financially dependent kids
This is a common scenario wherein a retired person has children who are financially dependent on them. In this case, you should consider buying a term plan so that you can leave behind a fortune for them.
- Financial security for the spouse
If your spouse depends on you financially, you cannot take any chances. You need to make sure that your life partner is self-sufficient when you are not there. The term insurance can help with the same.
- Repaying debts
One might think that 60 is an ideal age to repay all the outstanding liabilities. However, this is not always the scenario. You might still have a few debts, and you do not want to force your family to repay it for you from their personal funds. A term plan will leave them with enough money in your absence to take care of your debts.
Also Read: Judging a Life Insurance Company Based on Its Claim Settlement Ratio
How to choose a term plan
If you decide to buy term insurance for seniors, it is of utmost importance that you choose the right plan. Here are a few aspects of a term plan that you need to keep in mind before selecting one:
- Death benefit
The death benefit is the amount of coverage paid by the insurer to the nominees of the policyholder if they pass away before time. Make sure to opt for a cover that is large enough to take care of the household after you.
- Price
A term insurance policy is cheap but you can always find the cheapest product. The insurance industry is a competitive market. Hence, insurance companies always try to offer the best prices to attract new customers. Make sure to compare the premiums of different insurers to find the best deals.
- Claim settlement ratio
This is the ratio between how many term insurance claims an insurance company receives annually and how many claims they settle. A higher number indicates that the insurer is trustworthy.
- Riders
Riders are additional covers you can buy along with your existing term plan. When you are looking for insurers, find the one that offers some useful riders.
Steps to buy an online term plan
Buying the term plan online will save you a lot of time and you can do it from the comfort of your home. Here are the required steps:
- Choose your insurance company carefully and visit their website to register
- Provide information regarding age, gender, address, contact details, expected cover, income, and smoking habits to find a list of suitable term policies
- Choose your preferred insurance provider
- Pay the premium online after selecting the frequency of premiums according to your comfort level
- Fill the proposal form where you need to provide more details regarding your lifestyle and financial liabilities
- Upload photo identity proof, address proof, and copies of medical reports, as required by the insurer
Also Read: Reasons Why Personal Loan is the Best Bet for the Cash Strapped
If your application is accepted then the insurance company will send you the policy documents.
Your family’s financial security is your responsibility. Hence, you must invest in term insurance for seniors at the earliest.
