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- Senior citizen term insurance
What is Term Insurance for Senior Citizens
Buying a term plan at an early stage of life is always advisable to get protection for a longer period at affordable premiums. But, did you get caught up in life and miss out on securing your future? Undoubtedly, it’s not a wise move that may affect you in the long run.
However, you can still secure your future with term insurance even if you are a senior citizen, i.e. more than 60 years old. Term life insurance plans for senior citizens offer similar benefits as that of a term plan purchased at a younger age, but the premiums will be higher due to the higher risk involved.
However, the plan is designed to provide higher life cover to fulfill the needs of post-retirement. Under the senior citizen’s plan, you’ll get coverage for an entire lifetime - cover till 100 years of age.
List of Best Term Insurance Plans for Senior Citizens in India in 2024
Here, we’ve listed the best term insurance plans for senior citizens in India. However, the plans listed below are available for a person above 60 years old, non-smoker, salaried male, for a 50 lakhs cover till 100 years of age.
| Name of the Plan | Claim Settlement Ratio of the Company Selling the Plan | Entry Age | Life Cover | Policy Term | Monthly or Annual Premiums |
|---|---|---|---|---|---|
| ICICI Prudential iProtect Smart | 97.8% | 18 - 65 years | 50 Lakhs | 40 years | Rs. 24,102/month Rs.2,82,271/year |
| TATA AIA SRS Vitality Protect | 99.0% | 18 - 65 years | 50 Lakhs | 40 years | Rs. 30,613/month Rs. 3,46,693/year |
| IndiaFirstLife Guaranteed Protection Plus | 97.0% | 18 - 65 years | 50 Lakhs | 40 years | Rs.67,863/month Rs. 7,80,039/year |
| Bharti Axa Flexi Term Pro | 99.1% | 18 - 65 years | 50 Lakhs | 40 years | Rs.50,656/month Rs. 6,07,872/year |
| Edelweiss Life Zindagi Protect Plan | 99.2% | 18 - 65 years | 50 Lakhs | 40 years | Rs.48,358/month Rs. 5,80,292/year |
Overview of Best Term Plans for Senior Citizens
Here is a brief overview of the best-term insurance plans for senior citizens:
ICICI Prudential iProtect Smart
ICICI Prudential iProtect Smart is a simple term plan that protects financial protection for your loved ones in case of your demise during the policy tenure. This plan allows you to choose from a range of benefits such as accidental death benefits, accelerated death benefits, etc.
Key Features of ICICI Prudential iProtect Smart
- Special premium prices for non-tobacco users.
- Special discount on first year’s premiums for salaried individuals.
- Flexibility to choose premium payment tenure.
- Avail of need-based payout with this plan.
TATA AIA SRS Vitality Protect
Tata AIA SRS Vitality Protect is a term plan that comes with an inbuilt wellness program. This plan offers you a free health checkup every year.
Key Features of ICICI Prudential iProtect Smart
- 5% discount on first-year premiums.
- Option to choose between term plan or return of premium option.
- Renewal premium discount and cover booster up to 15% as per TATA AIA Vitality wellness status.
- Enhance your cover with additional rider benefits.
IndiaFirstLife Guaranteed Protection Plus
IndiaFirstLife Guaranteed Protection Plus is a term plan that offers you 3 coverage options to choose from. You have the flexibility to choose death benefits as monthly or lump sum or a combination of both.
Key Features of IndiaFirst Life Guaranteed Protection Plus
- Get covered for up to your whole life (till age 99) by paying limited premiums.
- Get your premiums back with the return of the premium option.
- Option to reduce your sum assured by 50% post reaching a certain age.
- Option to provide coverage to your spouse as well under a single policy.
Bharti AXA Flexi Term Pro
Bharti AXA Flexi Term Pro is a term plan that allows you to cover your spouse under the same plan which saves additional premium costs. You can choose a policy term as small as one year with this plan.
Key Features of Bharti Axa Flexi Term Pro
- Three death benefit payout options to choose from.
- Multiple premium payment options to choose from.
- Return of premium option to get all your premiums back.
- Life coverage up to 99 years of age.
Edelweiss Life Zindagi Protect Plan
Edelweiss Tokio Life - Zindagi Plus is a term life insurance plan for senior citizens designed to provide comprehensive protection to their families. It not only covers your present requirements but also provides the flexibility to take care of your changing responsibilities as well as increasing cost of living.
Key Features of Edelweiss Life Zindagi Protect Plan
- Multiple plan options to choose from.
- A top-up benefit to choose from at every policy anniversary starting from the first policy anniversary.
- Life Stage sum assured can be added to the policy while the policy is in force without any medical examination.
- You can choose the better half benefits with this plan.
Why Should Senior Citizens Buy Term Insurance?
In general, term insurance for senior citizens is an ideal way to secure your family’s financial future and help them fulfill monetary objectives when you’re not around. Apart from this, there are still plenty of reasons why senior citizens aged over 60-65 years should buy term insurance for themselves:
- With the senior citizen term plan, older people can leave an inheritance for their grandchildren or kids after their demise.
- It’ll give their life partner financial security in the event of your unfortunate death.
- The life cover can help your kids fulfill monetary objectives like paying liabilities that remain unpaid by you.
- Life cover can also be used to pay mortgage expenses that might be incurred after your death.
- In case a senior citizen is one of the earning members of the family, having senior citizen term insurance will ensure that your family receives life cover for the devastating income loss resulting from their demise.
Features of Senior Citizen Term Insurance
Insurance Coverage
With senior citizen term plans, you can avail of life coverage up to 100 years of age. However, the plan is designed to cover you and your entire family’s needs because older people’s needs are different from those of younger policyholders.Premium Rates
Term insurance plans for senior citizens feature premiums that will be higher as compared to term plans purchased at a younger age. But you can still avail yourself of the affordable deal by picking a suitable choice of policy term and premium payment option and by using a premium calculator.Optional Riders
Similar to the regular term plan, you can add an optional rider as part of the senior citizen term plan to enhance coverage. However, the rider’s availability may vary from insurer to insurer; you can add a ride in exchange for a nominal premium amount.Medical Test
It is mandatory to take a medical examination while buying a senior citizen term plan. Please note that the insurer will bear the cost of these medical tests. It is done to indicate any health risk so the insurer can determine the adequate coverage and premium amount for your plan.
Benefits of Term Insurance for Senior Citizens
Financial Support for Children
When you pass away, the life cover will help your kids financially to pursue their higher education and secure their careers. It’ll ensure that the devastating financial loss does not affect their dreams and goals.Tax Benefits on Premiums Paid
Under Section 80C of the Income Tax Act, 1961, you can claim a tax deduction of up to Rs. 1.5 lakh in a financial year for premiums paid towards the policy. You can also get a tax exemption under Section 80D if you opt for any additional health riders like critical illness and disability rider or accidental death cover.Tax Benefit on Payout
Under Section 10 (10D) of the Income Tax Act, 1961, the death or maturity benefit earned from a senior citizen’s term insurance policy is tax-free.Financial Independence for Partner
In the event of your unfortunate death, your life partner will receive death benefits to save them from the struggle of depending on someone financially during their old age. A life cover allows them to lead a stable life.Rider Benefits
The life cover of the senior citizen term plan can be enhanced by add-on riders. However, depending on the type of in-built cover selected, senior citizens can get additional protection for certain conditions. These riders include critical illness rider, accidental death benefit, terminal illness benefit, accidental total permanent disability benefit, waiver of premiums, etc.
In a Nutshell
Online term insurance plans for senior citizens in India offer a crucial financial safety net for individuals aged 60 to 65 and beyond. It ensures that their loved ones receive essential financial support if they pass away during the policy term. While premiums may be higher due to age-related risks, it’s vital to compare different insurance providers and policies to find the most suitable and affordable options. Additionally, insurers may require a pre-medical check-up before offering the policy and there may be specific limitations but there are also riders available for enhanced protection.
Term Insurance Plans for Senior Citizens: FAQs
1. Are there term plans available for senior citizens in the market?
Yes, Senior Citizens can purchase term plans, if you are above the age of 50 years of age you can avail a term insurance product and ensure that the future of your loved ones remain safe and secure as the nominee receives a lump-sum amount called the death benefit in case of your demise.
2. I am 70 years old, can I avail term insurance for senior citizen?
Yes, it is possible to avail term insurance for senior citizens. Many term insurance companies allow individuals over 65 to purchase an insurance policy. You can also buy term insurance even over the age of 70 years.
3. What are the best term insurance plan for senior citizens in India?
There are multiple insurance plans designed specifically for senior citizens. Best Term Insurance plan for senior citizens depends entirely upon the needs and requirements of an individual. Insurance providers like Kotak, HDFC, SBI Life offer multiple effective senior citizen plans that can be analysed.
4. Can I buy term insurance plan for senior citizens for my 75 year old mother?
Yes, you can purchase life insurance for your parents to help cover their final expenses.
5. What is the maximum age for term life insurance for senior citizens?
Usually, the maximum age for term life insurance is 89 years, senior citizens who want to purchase insurance over 80 should consider buying whole life insurance.
6. Are term insurance premiums higher for senior citizens?
Yes, premiums for term insurance tend to be higher for senior citizens due to increased mortality risk. However, it remains an affordable way to secure their financial neds.
7. Can senior citizens get term insurance with pre-existing medical conditions?
Some insurers may impose restrictions or require a pre-medical check-up. However, coverage can still be obtained, and the terms may vary based on the individual& 039;s health condition.
8. What are riders in Term Insurance for Senior Citizens?
Riders are optional add-ons that enhance the coverage of a term insurance policy. For seniors, these riders may include critical illness coverage, accidental death benefits, or disability waivers.
9. Is Term Insurance for Senior Citizens available for extended coverage beyond a specific age limit?
Yes, some insurance companies offer term plans that extend coverage up to the age of 99, providing prolonged financial protection for senior citizens and their families.
10. Can senior citizens buy term insurance if they are already retired?
Yes, senior citizens can purchase term insurance even after retirement, as long as they met the age eligibility criteria set by insurance providers, typically up to 65 years of age.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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