Aging is an inevitable part of your life. As you grow older, you might try to seek peace in everything that you do, especially financially. At an older age, you might not be able to work throughout your life. After a specific age, you might take retirement; hence your flow of professional income would eventually stop. During the old-age, when you don’t have financial support, you should purchase term insurance plans. With a term insurance plan, you can ensure the long-term security of your family even in your absence.
Before you buy term insurance plans, let’s first try to understand the meaning of a term plan in detail:
Term insurance is risk coverage with the main objective to financially safeguard your loved ones. Term insurance plans can offer a payout called death benefit to the members of your family in your absence. The death benefit can be obtained by your family based on their convenience. As the nominees, your insurance company provides them the death benefits either every month or every year in a lump-sum amount.
As a senior citizen, you might have specific needs as you grow older. With a term plan, you can protect your financial goals at an old age. In addition to this, you can buy term insurance plans due to following reasons mentioned below:
- To allow your spouse to be financially independent
In India, the usual retirement age can be between 55-60 years. When you retire between this age, you would no longer be eligible to receive professional income. If you have no source of income after retirement, you might not be able to provide for your partner financially. Moreover, if anything happens to you during your old-age, your spouse would suffer financially. Therefore, you should have term insurance coverage to ensure that your spouse continues to live the current lifestyle even after your demise.
- To fulfill the financial requirements of your dependents
Although you might take retirement to live comfortably in the future, you might have the financial burden to look after the financial needs of your family. If you are the breadwinner of the family, your family members might continue to financially depend on you even after your retirement. By the time you retire, your children might be studying; hence you might require a term insurance policy to look after their financial goals like higher education, planning a dream wedding for them, and so forth.
- To clear your past debts
At a young age, you might be keen on fulfilling your dreams and aspirations. Therefore, you might have borrowed loans or liabilities from the market to meet your goals like studying abroad, starting a new business venture, traveling, and so forth. If you don’t clear your past debts at a younger age, your financial liability can be passed on to your loved ones in your absence. Under such a circumstance, your family can clear your debts with a term insurance payout.
- To continue working after retirement
Many of you might choose to work even after crossing your retirement period due to financial constraints. According to the Aegon Retirement Readiness Survey, 79% of Indians plan to work after retirement to some extent. Therefore, you should buy term insurance plans to provide financial support to your family in the long run.
As highlighted above, the primary aim of term insurance plans can be to let your family live independently after your demise. With a term plan, your family doesn’t have to go through the financial burden of working hard in your absence to receive financial happiness. However, buying term insurance at an older age can be a challenging task due to high premiums. Therefore, use a term insurance premium calculator to determine the costs before purchasing a term policy.