It is quite common for young individuals to opt for term insurance to benefit from lower premiums. However, the importance of term insurance becomes even more critical in one's senior years. As people age, financial responsibilities often persist, health risks increase, and having sufficient term coverage becomes pivotal. Several term insurance options for seniors aged 60 and above are available for those seeking coverage, offering peace of mind and a safety net for dependents. Read on to learn more about the significance of term life insurance for senior citizens. 

Go through the following points to find out some of the major features of a term cover for senior citizens:

Age is a key factor in determining the eligibility of applicants while issuing their term cover. While the minimum age to purchase term insurance is 18 years, the maximum range is from 55 years to 65 years, with some insurers offering policies that extend to 99 or even 100 years. 

ACKO offers the ACKO Life Flexi Term Plan, which has a minimum entry age of 18 and a maximum entry age of 65. The plan provides coverage up to the age of 70.

The premiums are determined based on the policyholder's age and the assured sum. Individuals who purchase term cover later in their lives tend to pay comparatively higher premiums. However, exploring different options from insurers can help find an affordable life insurance policy for senior citizens. 

A term insurance plan is purely a financial protection plan. Hence, in case of the policyholder's untimely demise, the beneficiaries receive a lump sum as a death benefit. 

All applicants must undergo a medical test to buy term cover until age 60 or 85. The test enables the insurance provider to verify the illnesses or diseases the buyer has suffered from. Hence, it also plays a pivotal role in determining the risks associated with the policyholder.

Term insurance policies come with various riders or add-ons. You can include those to your existing term plan to enhance it and receive better coverage. However, including riders to term plans calls for higher premiums.

The following points feature the crucial reasons why individuals above 60 years must have a term cover:

Term insurance is a protection plan that ensures the financial security of your dependents in case of your demise. With the death benefit, your family can remain financially secure by receiving a lump sum from the term plan and fulfilling crucial aspirations like higher education, marriage, etc.

Term insurance plans allow the beneficiaries to pay off any loans or financial liabilities that might have fallen on them due to the policyholder's sudden demise. The death benefit of the term plan takes care of such financial commitments.

You can opt for multiple types of riders to enhance the existing term cover. These include accidental death cover, permanent disability cover, terminal illness cover, etc. All these ensure better financial protection at different stages of life.

Policyholders can claim tax benefits for their term insurance plans under Sections 80C, 80D and 10(D) of the Income Tax Act 1961. It enables you to save a substantial amount from your total taxable income.

Considering a few significant factors, you can land on the right term cover that perfectly aligns with your financial requirements. These include the following:

The best way to select the right senior citizen life insurance policy is to assess your financial requirements thoroughly. Hence, make sure to consider your financial liabilities or commitments, including loans and debts, as well as the potential requirements of your dependents. It enables you to assess the financial coverage or the sum assured you need to opt for.

Claim settlement ratio is the indicator of the degree of reliability of an insurance company. Thus, the higher the ratio, the more you can rely on them when processing your claim for financial coverage. So, you must visit the official websites of your shortlisted term insurance providers and ensure the same.

Considering that senior citizens are more prone to health issues, additional coverage should always work wonders for them in their time of need. Thus, you must check the riders or add-ons your term insurance company offers and include some of those in your existing policy to receive comprehensive financial coverage and other benefits of term insurance until age 85 and above.

A term insurance plan is no luxury but a necessity in the present era of market inflation. When it comes to ensuring the financial security of your loved ones, opting for a suitable life cover is a must. However, with better awareness and research, you can select and tailor the coverage based on your financial requirements. So assess your needs, research the insurance provider and choose the one that suits your preferences.