April 22, 2024

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Why do Senior Citizens need Life Insurance?

Why do Senior Citizens need Life Insurance

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Life insurance for senior citizens is essential to make them feel secured. The senior population in India is increasing with an enhanced lifestyle and life expectancy rate. Everyone wishes to be cared for in their second innings. Senior citizens often feel very lonely as they are not in a condition to help themselves, both financially or physically. Hence, one of the most remarkable ways to take care of them financially and mentally is to buy life insurance policies for them.

Why Do Seniors Need Insurance?

There are several aspects of why seniors need life insurance policies. But, the main reason is that these plans can serve as a replacement for their income to support them and their partner. Because, after retirement, the income suddenly stops. Seldom, when a senior member passes away, the spouse and children may undergo a lot of stress due to the lack of funds. Therefore, to avoid such financial pressure, insurance plans are essential as they act as a flow for savings and an income source at the end of the insurance policy term. Plus, cash derived from these life insurance plans can be utilised to pay off other existing debts like outstanding loans, medical expenses, etc.

Benefits of Senior Citizen Life Insurance Policies:

Senior citizens life insurance plans come with several added benefits apart from providing financial security.

The benefits of insuring seniors citizens’ lives include:

  1. Seniors feel privileged and don’t feel abandoned and ignored in their old age, which is undoubtedly very crucial to keep them healthy, both physically and mentally.
  2. It decreases your future financial problems because the life insurance plan will take care of your ageing loved ones by spending on their various requirements.
  3. Buying these life insurance plans can help policyholders avail income tax benefits as per the Income Tax Act, 1961.
  4. Senior citizen plans will take care of seniors, even in your absenteeism without giving the burden to extended family members.
  5. These plans can provide a source of money for funeral and death expenses, medical expenses, and other outstanding debts.
  6. They also give social security benefits in the form of an income flow (annuity) post-retirement.
  7. These policies support senior citizens to create a healthy corpus of funds for their loved ones.

How to Choose The Life Insurance Plan for Senior Citizens:

Picking the right life insurance policy for the elderly is a challenging task given the number of options and plans offered by various insurers.

It is always essential to examine the various life insurance policies offered by different insurance companies and find out the advantages and disadvantages of each plan, keeping in mind that the seniors often face unique challenges. Some elders might have difficulties finding the right plan because of their age, and some others may not get covered under better policies because of their poor health. So, after evaluating and understanding the different needs of senior citizens along with the pros and cons of the senior citizen life insurance plans, you need to compare prices and benefits to arrive at the right choice.