Do Senior Citizens Need Life Insurance?

If the COVID-19 pandemic has taught us anything, it is about the uncertainty that can appear out of the blue anytime. Tough we cannot avoid these uncertainties, but surely, can plan to safeguard ourselves from them by taking life insurance plans. You can and rather should take one such plan, irrespective of your age. You should take life insurance even if you are a senior citizen now, here’s why:

 Source of Income: Now that you are retired and have no stable and regular source of income, this is where life insurance will come into play. The expenses are constant and will increase on medicines and health check-ups. Use a life insurance premium calculator to compute the amount you will have to pay every month.

• Untimely Demise: In case something unexpected happens or any health emergency is there in the family, then the nominee of life insurance plans will get the policy amount. The money will act as an umbrella in the thunderstorm, especially when there are no emergency funds.
• Healthcare Expenses: A sudden medical emergency can eat up all the savings you had for your post-retirement life. In such a scenario, insurance will turn out to be a blessing for the family. You have to look for answers to what is life insurance and how it can protect you when you are in your sunset years.
• Multiple Types of Insurance: There are a plethora of reasons as to why you should take a life insurance policy or any other associated policy. These policies are annuity plans, term life insurance, endowment policy, and whole life insurance to name a few. Thus, despite being a senior citizen, you have various options to cater to diverse needs from financial security to regular payments.
• Investment: If you got your provident fund on retirement and now you want to invest a portion of this to earn returns, then ULIP is your answer. ULIP or Unit Linked Insurance Plan is a type of life insurance that offers you insurance cover along with returns from the amount invested from the premium you paid. Use a life insurance premium calculator to know the amount you will have to pay for this policy.

 Benefits of Life Insurance Plans for Senior Citizens

There are multiple benefits to the policyholder and his family once he attains 60 years of age and is retired. These benefits are:

1. You will not have to worry much about the finances, even when you are not getting a salary every month or any pension after you retire. A single policy will take away all your financial stress. Compute the amount you will have to pay monthly using a life insurance premium calculator.
2. You can buy a policy for your parents who are senior citizens and can claim tax benefits for paying monthly premiums under Section 80C of the Income Tax Act. Read more about what is life insurance exactly and how it can help you save more taxes at the same time offering financial security to your family.
3. The amount you get at life insurance policy maturity can be used for your child’s higher studies or his/her marriage. You can also buy them a house with this money. In a nutshell, you can do anything you want with this money and thus enjoy financial freedom.
4. You can repay your existing debts to your friend, relative, or bank from the money you will get at the maturity of term life insurance plans. Your liabilities can also be taken care of by just taking insurance.
5. An endowment policy, which is another type of life insurance, will give you dual benefits of savings and insurance cover. A portion of your monthly premiums is accumulated and paid with interest at the maturity of the policy.

By now, you may have a fair idea of what is life insurance and how it can protect you in more than one way. The bottom line is that there is no right age for taking insurance. Just compute the monthly premium using a life insurance premium calculator available online, compare different policies, and buy the ideal policy for you.