The Best Term Life Insurance Policy For Senior Citizens
Talking about term insurance, it is a pure protection plan that is specifically designed to secure a family financially in case of the insured person’s sudden death. However, there is a misconception that the term insurance is ideal for young people only as it has a longer-term. But interestingly, this it is becoming prevalent for the senior citizen as well, and they can buy it for the duration of 25 to 30 years. Nowadays, several insurance providers are offering senior citizen term plan, but you need to carefully look into the features and benefits to buy the best term life insurance policy.
Why is term insurance important for senior citizens?
There are plenty of reasons which suggest that term life insurance is essential for senior citizens. So, let’s have a look on those reasons:
Repaying policyholder’s debts and liabilities might become a burden for the beneficiary in the absence of policyholder. Hence, in such case, the sum assured of the best term life insurance policy can assist the policy nominee in paying off the remaining debts and liabilities of the insured person.
The insurance coverage will also take care of the nominee’s financial needs.
The sum assured of a term policy is usually enough for the insured’s family members to sustain their regular lifestyle comfortably.
Nowadays, working age for many people has gone beyond 60 years. And in the absence of the earning member, his or her family should keep getting the monthly income. The term insurance cover amount helps with that.
In case the insured wants to leave behind a legacy, then term insurance is the ideal option so that the family members can always remember the person in his or her absence. As under a term policy, the beneficiary receives a lump-sum amount in case of the demise of the insured person within the policy term.
Features of the best term life insurance policy for senior citizens
The maximum age limit for purchasing term insurance for senior citizens might vary depending on the insurer. Generally, in most cases, the age limit is 60 years.
Traditional term insurance policies only offer death benefit in case the insured dies within the policy term. However, if you want to get maturity benefit, then you can buy ‘Return of Premium Term Plan’. Under this policy, if you survive the policy term, then you get all the premiums back.
The policy premiums depend on the policyholder’s age. So, in the case of a senior citizen, the premiums will be higher as compared to an insured person who is young.
Riders are one of the crucial features of the best term life insurance policy as the riders enhance the spread of the existing coverage while maximising the benefits.
Term insurance providers usually ask for medical tests before approving the insurance. But certain insurers do not require medical tests; they just need your medical history.