You Thought Term Insurance is Not For Senior Citizens

The elderly population in India has been escalating at an alarming rate. According to a report the elderly population was 77 million in 2001, this has increased to 104 million in a decade, and will increase to 20% of the total population or 300 million by 2050. This trend can be attributed to advancement in healthcare, improved accessibility to hospitals and higher awareness about diseases and preventive interventions.

The life expectancy has also increased and the consequence of this trend is that financial plans need to be re-revisited, to account for financial liabilities continuing to post the retirement periods. In order to help sustain the family’s lifestyle, in their absence, one needs to make smart financial decisions. Opting for a term plan is one of them.

A few years back, it might not have been possible for senior citizens to avail term plans. However, today, even individuals over 60 years of age can get term insurance, subject to clearing medicals.

Today, one of the popular demographic shifts is that more and more people delay getting married. At the same time, couples also delay starting a family. This trend has led to a peculiar situation by the time the parents touch 60, the kids are still getting an education and require financial assistance.

This means that even while the biological clock ticks ‘retirement’, the financial situation begs to differ. Hence, in order to ensure the child’s financial needs are covered, opting for a term plan is a wise decision. It brings peace of mind and spells fiscal prudence.

You’ll find individuals who are well past their retirement age but are compelled to find part-time jobs to make ends meet. These are generally people who have either not saved enough or are servicing debts. Liabilities like home loans, loan against property and vehicle loans are generally availed for long tenures. Hence, it is likely that a senior citizen might need to work a few extra years to pay off the EMIs. This is where term insurance becomes invaluable.

A term insurance policy can be bought to cover the specific loan amount. In case the individual is no longer there, the sum assured can serve to pay off outstanding loans without causing financial inconvenience to the surviving family members.

As you enter the golden period, you want to slow down and retire peacefully. However, while you plan this life of solitude, you want to ensure that even in your absence, your spouse will have the required means and resources to stay independent and live the life you planned together. A term plan can help build this certainty.

By availing a term insurance plan for senior citizens, you can rest assured that your spouse will have the financial support to meet his or her aspirations and needs, even when you are not around.

Aastha Mestry - Portfolio Manager          

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.