Old age is the glorious period of your life which you should enjoy to the fullest. You can spend your golden years traveling the world and fulfilling your hobbies instead of working hard and worrying about your family’s financial future.
Bank fixed deposits, retirement plans, and pension plans have been among the most common financial products where senior citizens invest to earn good returns. If you intend to generate enough corpus for your loved ones, which can come in handy when you are not around, you can consider investing in a term insurance plan.
You may think that it is not sensible to invest in a term plan at this age. Moreover, you may feel that you may not qualify to buy a term plan. However, you will be delighted to know that many insurance companies have crafted term plans, especially keeping the needs of senior citizens in mind.
Advantages of buying term insurance for senior citizens
Here are a few reasons to invest in a term plan:
- Provides financial safety
The primary purpose of a term insurance plan is to safeguard the family’s economic future if the policyholder passes away during the policy period. So, a term plan for a senior citizen has the same functionality. It provides monetary protection to the policy’s nominees. The sum assured can come in handy for your loved ones to meet their day-to-day household expenses and achieve their aspirations. You can consider using the term plan premium calculator to ascertain the cost you need to pay for a particular sum assured.
One thing that you should note here is that your children may still be dependent on you. They may have a wish to study abroad and excel in their career. Their dreams can go down the drain in case anything untoward happens to you. Therefore, investing in an online term policy can ensure that your children’s goals transform into reality during your absence.
- Helps in repaying debts
If you have any home loan, personal loan, car loan, or any other type of debt, it can be difficult for your family to repay these obligations if you are no longer around. Besides this, they will have to face financial hardships and compromise on their life goals. For instance, the dream of celebrating your daughter’s wedding lavishly can take a backseat if your family’s savings are used to repay the loans. Thus, buying a term plan at this age can be useful. It can shield your family from the burden of debts during your absence. Ensure that the sum assured you opt should be greater than the total of your debts so that your family members can clear the liabilities and accomplish their goals.
- Ensures that you leave a legacy for your family
While investing in a term insurance plan, you can leave behind a high tax-free death benefit for your dear ones in case of any eventualities with your life.
- Offers tax exemptions
Another reason to invest in an online term policy is to reap its tax benefits. You can claim a deduction on the premium that you pay for your term plan under Section 80C of the Income Tax Act, 1961. Here, you can seek a deduction of up to INR 1.5 lakh every year. Moreover, the death benefit that your family will receive is tax-free under Section 10 (10D) of the Act as specified therein.
Now you may have understood what is term insurance and the plus points of investing in it at an older age. It is time to take the assistance of a term plan premium calculator to compare the costs of different policies and select the most suitable policy. Ensure that you are adequately insured so that you need not worry about your family’s financial security in your absence.