Sit back, relax and enjoy the golden period of your life with these 5 best term insurance plans for senior citizens available in India .
After having worked hard to make a decent earning an entire lifetime, you don’t want to be squandering every penny of it to keep yourself fit and healthy after your retirement. This is why it is wise to plan for your future in your present when you’re hale and hearty and, most importantly, have the physical and mental ability to earn. Term insurance is the best way to ensure a financially secure future for yourself and your family in the golden period of your life.
How Does a Term Insurance Plan Help the Elderly?
The best part about buying term life insurance for your loved ones is that you can be rest assured that their financial needs will be well taken care of when you’re not around. Some other reasons why it’s a good idea to invest in term insurance are:
- Your spouse and kids would be able to receive a sufficient amount of money as inheritance after you, which would help them lead a decent comfortable life ahead.
- In case you had any unsettled debts or loans, the monetary death benefit from your term insurance plan would help clear off all of those so that your family doesn’t need to be bothered due to any of it in your absence.
- The death benefit from term insurance is also a great financial support to your spouse (especially wives) who need not depend on anybody after you.
- If you have any children or another family member who may be dependent on you financially, the money received from term insurance can serve as a regular income source for them for a long time to take care of all their needs and future goals.
5 Best Term Insurance Plans to Invest in For Senior Citizens
Now that we know that buying a term life insurance policy for a secure future for your loved ones is absolutely essential, let’s look at some of the best options available in the market to put your hard-earned money into:
- LIC e-Term Plan: This is considered the best term insurance plan for senior citizens owing to it being a pure insurance product. This means that the plan is designed to provide exclusive death benefit to the beneficiary or nominee of the policyholder in case of the death of the latter. This also means that in case the policyholder survives the entire term of the policy tenure, their chosen nominee would not stand to receive any maturity benefit from the insurance plan. However, since the plan provides sufficient coverage for life after the death of the policyholder, it’s a good way to secure the future of your loved ones in your absence.
- Aegon Life iTerm Plan: This is another of the best term insurance plans for senior citizens in India, which offers huge flexibility in a lot of respects. For instance, the plan can be easily bought online by downloading a simple form from the insurer’s website which means saving time and hassle. Besides, the plan also allows for premium payment in any mode convenient to the policyholder. In addition, non-smoking policyholders and women are given the option to pay a reduced premium throughout the policy tenure.
- Max Life Insurance Online Term Plan Plus: Under this plan, the insured gets 3 cover options to choose from, based on their actual financial needs and budget preferences. All the 3 options promise insurance coverage to the policyholder up to the age of 85 years. In case of an unfortunate event of death of the latter, their spouse and family would receive monetary death benefit under the plan to secure a comfortable future ahead. The best term insurance plan for senior citizens to consider investing in.
- IDBI Senior Citizen Term Insurance: This is a whole life insurance plan for the elderly, meaning the plan comes with an unlimited term. The financial coverage assured under the plan lasts until the death of the insured; however, the premium amount for the policy needs to be paid until the insured is 90 years old. The policy details that in case of an untimely demise of the insured within the first 2 years of buying the policy, the respective beneficiary would receive death benefit amounting to 125% of the premium paid so far. In case of the death of the insured after 2 years of buying the policy, the nominee stands to receive the entire sum assured as death benefit.
- SBI Life Poorna Suraksha Plan: This senior citizen term insurance plan is a safe investment because it provides coverage not just for after death of the insured but also in case of other emergencies such as critical illness. The plan comes with a default Critical Illness cover which means in case of financial emergency for funds required to treat a disease/serious illness for the insured, their family can count on the money received from the term plan. Moreover, another best feature of the plan is that with the increase in age of the policyholder, the life insurance coverage and the critical illness cover both get automatically adjusted. This is why the plan is aptly named Poorna Suraksha, meaning complete protection for the life insured.
The following table details the eligibility criteria and sum assured under some of the term insurance plans for senior citizens listed above. It also lists out the Claim Settlement Ratio (CSR) of all the insurance companies offering these plans to help you make an informed choice while investing. Note that it is always wiser to choose a company with a higher CSR value since it enjoys a better and credible reputation in the market.
| Name of the Plan | Max Age of Entry for the Plan | Age of Maturity Under the Plan | Total Sum Assured Under the Plan | Claim Settlement Ratio of the Insurer |
| Aegon Life iTerm Plan | 65 years | 100 years | Rs. 25,00,000 | 98.01% |
| Max Life Insurance Online Term Plan Plus | 60 years | 85 years | Rs. 20,00,000 | 99.35% |
| SBI Life Poorna Suraksha Plan | 65 years | 75 years | Rs. 20,00,000 | 94.52% |
Read More: How to Get Benefits From a Term Life Insurance Policy?
Wrapping Up
The ideal time to start investing in a term insurance plan is when you’re younger and as soon as you start earning a decent income. This is because at a younger age, you’d be able to invest in term insurance for a longer time, securing your old age and even the life of your loved ones in your absence. However, if you haven’t already, it’s time to start investing in a term insurance plan at least when you turn 50. You can look for the best term insurance plan for senior citizens in India on PayBima and choose the one that best suits your budget and requirements.
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