It’s a common belief that life insurance is only meant for young professionals starting out in life. However, that’s far from the truth. Even if you’re in your 60s or beyond and worried that you might not be eligible for life coverage, it is important to know that you can still secure your family’s future with the right insurance plan. In fact, term insurance for senior citizens is designed precisely for this stage of life, when your income may reduce, but your responsibilities remain the same. Whether you're a retired professional, a pensioner, or someone with dependents, read on to learn and understand everything you need to know about life insurance policies designed for you.
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Senior citizen term insurance is a type of life insurance policy specifically designed to meet and cater to the needs of older people, let’s say, individuals aged 60 years and above. Here, you must understand that term insurance for senior citizens comes with features suited for retirees or soon-to-be retirees.
Mrs. Sharma, a 68 year old retired school teacher, had a limited income from her small pension and savings. She also had a medical condition that required regular medication and visits to a doctor. Her objective was to ensure peace of mind and financial security, so Mrs. Sharma bought a term insurance policy for seniors. She chose the policy term of 10 years with a sum assured of ₹10 lakhs, which would cover medical expenses and critical illness.
A few years later, Mrs. Sharma suffered a stroke and was hospitalised. Her medical bills amounted to Rs. 3 lakhs. Fortunately, her TI policy covered medical expenses, ensuring her savings were not depleted.
The policy also provided a death benefit to her nominee, which could be used to pay off any outstanding debts or expenses, such as funeral costs. In this way, Mrs. Sharma ensured her financial security and independence during her retirement years. In addition, she provided peace of mind to her family members.
Many senior citizens have this misconception that it's too late to get life insurance, but retirement doesn’t automatically mean your financial responsibilities disappear. So, let’s look at some of the key reasons to have a term insurance for senior citizens above 65 years.
Not all senior citizens are financially free from responsibilities. In many Indian families, even after retirement, older parents continue to support their children, spouse, or even grandchildren. In such scenarios, a term plan for senior citizens ensures that, in the unfortunate event of your passing, your loved ones still have the financial support they need to carry on with their lives.
Let’s say you are entering retirement but still have unpaid loans. It could be a home loan, personal loan, or even credit card debt; these obligations don’t vanish with retirement. The burden of repaying those dues may fall on your family if you are no longer there. A senior citizen term insurance policy can provide a lump sum amount to protect your loved ones from financial strain.
Life after 60 should be peaceful, not stressful. With the right seniors' life insurance plan, you can achieve this. The comfort of knowing that your family won’t be left struggling financially helps you focus on your health and your hobbies and offers peace of mind.
Some term insurance plans for senior citizens also offer life cover, especially up to the age of 99 years. Having a plan takes away the worry about renewing your policy or buying a new one later in life.
It is necessary to have a clearer understanding of term insurance above 60 years before selecting the most appropriate plan. Here’s what you can expect from a term insurance policy for senior citizens in India:
The age limit for term insurance plans for senior citizens varies from insurer to insurer. In general, these plans are available for individuals between 60 and 75 years of age. These policies typically have a higher age limit than regular term insurance policies. However, it is important to note that most senior citizen term plans are non-renewable, so once the chosen term ends or the maximum maturity age is reached, the policy terminates.
The premium is determined by the buyer's age. As you age, the premium amount goes up. Since the risk of mortality increases, premiums for senior citizen life insurance are naturally higher.
If you're a senior citizen looking to purchase term insurance, then having a medical test will be essential. An insurer will put you under certain screenings that would help them identify any existing health conditions, such as diabetes or hypertension, and determine premium rates before purchasing insurance.
In the unfortunate event of your passing during the policy term, a death benefit will be paid to the designated beneficiaries. This amount can help cover daily living expenses, medical bills, loan repayments, or even future family goals like education or marriage.
Several term insurance policies for senior citizens have the option to enhance coverage with riders. Several options are available, such as terminal illness cover, accidental death benefit, waiver of premium, return of premium, etc.
Tax benefits on premiums paid under Section 80C. Additionally, the tax benefit on payout (the death benefit) received by the nominee is exempt from taxes under Section 10(10D) of the Income Tax Act, 1961.
Choosing the right term insurance for senior citizens above 60 years can bring several practical and emotional advantages. Let’s look at how these plans make a meaningful difference:
Even after retiring, many seniors want to ensure they are financially self-reliant. A term plan can help you cover your own medical expenses and avoid depending on children or relatives for support.
This benefit is ideal for many senior citizens, who carry unpaid loans into retirement. The payout can help pay off debts. This is one of the most important reasons to buy a term insurance plan after 60 years.
Many term insurance policies for senior citizens enable you to add an extra layer of protection by adding riders, such as critical illness cover, terminal illness cover, accidental death benefit, return of premium, etc.
Having a term insurance plan for senior citizens allows you to leave not only memories, but also financial stability. It helps create a legacy for future generations in your absence. Whether it’s helping a grandchild study abroad or supporting your spouse’s medical care, your policy can continue to support your family in many important ways.
The ACKO Life Flexi Term Plan is a pure and non-linked plan with unmatched flexibility, offering all-inclusive coverage for you and a financial safety net for your loved ones. Whether buying a new home or starting a family, adjust your coverage up or down anytime to fit your needs. Remember that the ACKO Life Flexi Term Plan covers up to age 70. Minimum Entry Age: 18 | Maximum Entry Age: 65
Here's what sets this term plan apart:
Adjust your coverage precisely to your needs, ensuring you have the protection you require at every stage of life.
You get the freedom to adjust your policy terms, accommodating changes in your financial goals seamlessly.
Choose from a range of payout options, allowing you to decide how your benefits are distributed to best serve your family's needs.
Benefit from competitive premiums that ensure comprehensive coverage without straining your budget.
Avail tax benefits under section 80C up to ₹45,000 annually while securing your family's future.
Access the convenience of creating a Free Digital Will, simplifying the process of estate planning and ensuring your wishes are carried out efficiently.
Not all plans are created equal. Here’s a checklist to help you choose the most suitable term life insurance for senior citizens in India:
Age is crucial in determining your eligibility for ACKO Life Flexi Term Plan. The minimum entry age is 18, and the maximum entry age is 65.
[Note: ACKO Life Flexi Term Plan provides life coverage until age 70, with entry limited to 65 years.]
Individuals engaged in high-risk occupations, including hazardous activities, may affect their eligibility or the premium rates offered.
Habits such as smoking and excessive alcohol consumption directly influence the premium amount, considering the overall risk associated with it.
Income is an indicator of your financial stability, risk assessment, policy duration and more.
It is key to understanding your current health status, risk mitigation (identifying pre-existing medical conditions or potential health risks), and determining accurate premiums.
To qualify for term insurance for senior citizens in India, policyholders must undergo a medical check-up and meet specific health conditions and eligibility criteria. Below are some conditions:
Term life insurance for senior citizens comes with specific age limits set by insurers. Most plans are available to people aged 60 or 65 and above. However, the maximum age limit can vary from one policy to another.
To avail of a term insurance plan for senior citizens in India, you must be a citizen of India. Non-resident Indians may also be eligible and would need to provide additional documentation like their passport, proof of Indian citizenship, and proof of residence abroad.
Term insurance plans for senior citizens can be substantially enhanced using optional additional add-on riders. Let's discuss the most common riders available:
This rider provides a lump sum payout if the policyholder is diagnosed with the critical illnesses listed in the policy. Common illnesses covered include:
This rider provides an additional sum assured if the policyholder passes away due to an accident. It’s paid over and above the regular death benefit.
This rider allows for early access to the policy’s sum assured if the policyholder is diagnosed with a terminal illness (an incurable condition). It’s useful for senior citizens to get access to funds while they’re still alive, for hospice support, and more.
This rider waives future premium payments if the policyholder suffers a total permanent disability or is diagnosed with a critical/terminal illness (as per the rider's terms). With this rider in place, the policy remains active, but you no longer have to pay premiums.
Buying term insurance after turning 60 can be a wise decision. However, it is important to evaluate some of the key factors before making the purchase:
At 60+, insurers consider your health history very carefully. Conditions like diabetes, high blood pressure, or cardiac issues can impact your eligibility and premium rates.
Choose the right coverage duration based on your age. The goal is to match the policy term with your financial responsibilities.
Premiums are higher at 60+ due to increased risk. Avoid over-insuring yourself. A policy with ₹25–50 lakhs sum assured can be enough if your major expenses are already covered. Opt for limited pay or regular pay based on your preference. You can also use online calculators to estimate the premium before applying.
As a senior citizen, you want to ensure that your nominee doesn’t face hassles while making a claim. Choose an insurer with a high Claim Settlement Ratio (CSR), preferably above 95%.
You can choose how your family receives the death benefit. A lump sum is ideal for repaying large debts, on the other hand, monthly payout helps in replacing lost income for day-to-day needs.
Riders enhance your policy’s scope beyond death cover. For seniors, the right rider can help manage medical emergencies, disabilities, and critical illnesses better.
Always nominate someone you trust and keep them informed about the policy details
Many people think they can buy term insurance later. But waiting can lead to higher costs or fewer options. Here’s why you shouldn’t delay
Term insurance is most affordable when you're younger and healthier. The older you get, the higher the premium rates for you.
As age progresses, the chances of developing health issues also rise. Most insurers require a medical test before issuing a policy, especially for people aged 60 or above.
Many insurers have an age bracket of 18 to 65 years for buying term life insurance.
If your family is still financially dependent on you, whether it's your spouse, children, or even grandchildren, delaying term insurance means delaying the safety net they would need in your absence.
Perhaps the most underrated benefit is the peace of mind that comes from knowing your family will be protected, no matter what happens. That’s not something you want to postpone.
Ensuring your loved ones are financially secure becomes increasingly important as you age. A 1 crore term insurance might be valuable for offering peace of mind, considering the rising costs of living. With a maximum death benefit of 1 crore, this coverage guarantees that should the unanticipated happen, your family will have the financial means required.
Are you curious about your premium? Use a term insurance calculator to estimate the right coverage and premiums based on age, health, and coverage quantity. This will enable you to select a plan that provides the required protection within your means.
Term insurance is an excellent choice for young working professionals seeking financial stability. It’s a temporary, affordable solution that can meet your needs, whether you're looking for coverage or to support your family. On the other hand, permanent life insurance offers long-term coverage and other financial benefits, including investment possibilities and savings plans.
Whether you’re 60, 68, or even 75, term insurance for senior citizens can provide life coverage based on your needs. It's never too late to take steps to protect your loved ones from financial uncertainty. And with evolving insurance products in India, there are more inclusive, affordable options than ever before. Explore term insurance for senior citizens above 60 years today.
This section showcases frequently asked questions and their answers related to term insurance for senior citizens.
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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