When we love our families, our instinct is to keep them safe forever. With time, this urge only gets stronger. A lot of folks believe that getting life insurance is something that only young people who are at the beginning of their careers should do. However, that is totally wrong.

Nowadays, senior citizens in India have excellent ways to help their families financially in case of their demise. One of the most effective methods is a term insurance policy. We will explain it in such simple terms that even grandchildren will be able to understand it perfectly.

What is Term Insurance?

Think of it as a very basic contract between you and the insurance company. You dedicate a small part of your income, monthly or yearly. This little investment you make is the premium. The company then gives you a guarantee that it would pay your family a huge amount if you were suddenly taken away from this world and were therefore no longer in a position to provide for them. This big amount is termed the sum assured.

For elderly people, this type of insurance is the term insurance plan for senior citizens. It is like a shield that financially protects you by making sure that your spouse and children won’t have to face the problems of money or debts and their normal living expenses if something happens to you.

Who Can Get It? (Eligibility Criteria)

Is this plan something one can just buy? Unfortunately no. Insurers put in certain checks before they give their green light. Here’s the list of things that make a senior citizen eligible for this type of insurance in India:

1. The Right Age Range

Most importantly, your age is the main consideration for deciding whether you can buy life insurance or not. Generally, the insurers in India provide you an option to take a fresh policy between the ages of 60 and 65 years. However, some companies may allow the entry of even older ages, i.e., 70 to 75 years.

The most essential aspect is once you have purchased the policy, that cover will provide protection for a long period, often till you are 85 years old and, in some special cases, up to 99 years of age.

2. Good Health and Medical Check-ups

As age progresses, bodies age, and one may develop more health issues with it. Generally, most insurance companies require seniors to get simple medical tests done, as they want to check blood sugar, BP and heart functioning. If you have good health, then getting the insurance will be much easier.

3. Regular Income Proof

The actuality that you are able to pay regular premiums must be shown even after the retirement period. Various kinds of income you can prove to the insurers by means of showing your ITR or bank statements.

How is the Premium Calculated?

Often times customers ask, “How much of a sum will I have to spend to secure this safety net?” The cost you bear may never be the same for all people. It varies in accordance with your individual features.

Most companies make it simple to get rate quotations and do not charge for it. They have an insurance premium calculator on their websites through which, upon inputting your age, the size of monetary support your family needs, and your lifestyle habits, the price is given to you immediately.

The main inputs your term insurance calculator will need to determine your premium are as follows:

  • Your Age: Simply by the law of nature, our risk of dying increases with age. Hence, a person aged 60 years will end up paying a premium higher than a person aged 30 years for the same countermeasure.
  • Your Health Habits: If you smoke or consume tobacco regularly, you will be charged a higher premium. On the other hand, non-smokers receive a hefty discount.
  • The Amount of Cover: If you opt for a safety net of ₹50 Lakh, your premium will be less. If you step up to a bigger safety net of ₹1 Crore, the premium will naturally also rise.
  • Gender: Generally, women tend to live a bit longer than men. Hence, some insurance companies for a long time have been offering lower premium rates for senior women citizens.

Choosing an Online Calculator at First

It is a smart move to use a term insurance calculator even before you get in touch with an agent or a company. It takes less than 120 seconds.

Views: 6