Term insurance for senior citizens: All you need to know

A term plan is a simple insurance plan that gives a lump sum amount to the nominee of insured persons in case of his or her death. There is no other benefit. There are many term insurance plans available in the market. Nowadays many older individuals are also purchasing term life plans. If you plan to buy a term plan after 60 years, you need to carefully look at some features in the plan.

In majority of the term insurance plans, the maximum entry age is up to 65 years. These can provide coverage of up to 80 years.

Coverage

Term insurance plans offer only death benefits to the beneficiary of the policyholder during the tenure of the policy. If your spouse is dependent on you post-retirement, term insurance can be a good protection option. Even after your death, your spouse may continue to maintain the same living standard.

Premiums

Premiums directly affect our pockets. This gives a fair viewpoint of affordability of a plan. Generally, term insurances are affordable compared to other life insurance products. But if any person buys a term plan at an older age he or she is likely to be charged a higher premium.

Medical test

While buying a term insurance, senior citizens may be asked for pre-policy medical test or will have to provide a health declaration. Don’t hide any medical condition while buying term insurance.

Riders

Riders provide an extra cover with base policy in return for a degree of higher premium. These benefits are offered under the term plans for the senior citizen. These riders are for critical illnesses, accidental death or disability.