When you are the primary breadwinner of your family, your family depends on you for their financial needs. However, in case of your sudden demise, it is good to have a financial backup that your family can rely on. This backup is basically what life insurance provides. When you buy life insurance, you, as a policyholder, have to pay premiums. During the duration of your policy, if you lose your life suddenly, the nominee of your policy may get the sum assured. This ensures that your loved ones have financial cover to rely on in your absence.
Depending on factors like your age, income, health condition, and lifestyle, the premiums of your life insurance are determined. You can use a life insurance premium calculator online, where, depending on the details you provide, you will get an estimate of the premium you have to pay to get your desired sum assured. Most people often wonder if they can buy insurance after the age of 60. The answer is simply, yes, one can buy life insurance at the ages of 60 and above. There are several life insurance plans for senior citizens who are above 60 years of age. Most senior citizens choose to buy life insurance when they have dependents or liabilities.
How to choose the right life insurance plan when you are above 60 years of age?
We as individuals have different priorities in different stages of life. When you are an individual over 60 years of age, here are some points which would prove helpful to choose life insurance that provides maximum value:
- Financial cover
A life insurance policy at its core provides financial cover to your loved ones in your absence. When you are buying life insurance, it is important to ensure that you choose a sum cover that covers the financial needs of your dependents with ease. Also, if you have any liabilities, take those into consideration as well when you are estimating the sum assured you need. You need to ensure that in your absence, there is sufficient financial cover for your loved ones to live a good quality life.
- Choosing a premium amount
Insurance companies require you to pay a set amount every month as a premium for the sum assured that they are providing you. This premium is determined by taking into consideration factors like age, income, health, and lifestyle. Ensure that while buying life insurance, the premium that you choose covers the needs of your dependents and your liabilities. Use a life insurance premium calculator to get an estimate of the premiums payable for your desired sum assured. Also, ensure that the premium you choose, is a value you can easily pay throughout the duration of your policy.
When you are looking for life insurance above the age of 60, term insurance is likely to meet your needs. Term insurance is a simple type of life insurance where you get a life cover for a specific period. You, as a policyholder, get to choose the tenure of your term insurance. Depending on how long you are going to have dependents or liabilities, choose a tenure accordingly. The biggest benefit of opting for a term plan is that you get a vast sum assured for a low amount of premiums.
What are the benefits of buying life insurance after the age of 60?
The significant perks that a life insurance policy provides to a senior citizen include:
- Your dependents can live a good quality of life in your absence.
- The sum assured would help to pay off your debt in your absence. This ensures that your family’s life is not disturbed because of your liabilities.
- You get tax benefits, as the premiums you pay are exempt from taxes. Also, the sum assured of a policy is exempt from taxes too.
- An inheritance for your family, which they can access with ease.
Also, insurance that provides regular payouts after maturity, like an annuity, helps in providing you with a source of income after you stop working.