The purpose of life insurance policies is to provide financial protection to the beneficiaries and nominees of the policyholder and to build wealth over the long term. Senior citizens over 60 can choose from the various types of life insurance plans to provide a death benefit to their families in case of their unfortunate death or maturity and survivor benefits if they outlive the policy.
With pension plans for senior citizens, you can maintain financial independence while fulfilling your post-retirement dreams. Even if you retire, you can continue to receive a regular income by purchasing a life insurance policy.
Read on to find the best life insurance policy for a 60-year-old in India and its importance and benefits.
Best Type of Life Insurance for 60-year-old
Term plan, whole-life, and endowment life insurance policies are the types of life insurance available in India.
- Term plans for senior citizens last for a specific period and expire at the end of that period.
- A whole-life policy covers your entire life and is guaranteed to renew at any point.
- The purpose of an endowment policy is to accumulate cash value over time that can then be used as a source of income during retirement.
It is essential to consider various factors when deciding on life insurance for 60-year-olds, such as age, health, and lifestyle. An individual’s situation must be considered when selecting an insurance plan. Use a term plan premium calculator for the right policy and premium.
Need for Life Insurance for a 60-year-old
People’s health conditions worsen as they age. Due to the fragile state, physical ailments are more prevalent, and immunity is decreased. It is essential to have life insurance for seniors over 60 years old to protect their dependents.
Senior citizens over 60 years of age need life insurance for the following reasons:
- Inheritance
Your family and children could greatly benefit from the sum assured. A life insurance policy will give your loved ones substantial money after death.
- Secured Partner
Senior citizens’ life insurance provides immediate coverage since there is no waiting period. Your spouse will benefit from life insurance if you plan to support them financially. After your death, they won’t have to worry about financial burdens.
- Life Expectancy
The life expectancy of Indian senior citizens has increased as a result of advances in healthcare. In addition to travelling the world, they live fulfilling lives. Life insurance policies can cover health-related costs.
Life Insurance Benefits for Seniors
Senior citizens can benefit from life insurance policies in several ways.
- As you approach 60, financial security becomes more critical. All your expenses can be covered if you purchase life insurance.
- Life insurance payouts can help you cover the costs of an unexpected medical emergency.
- As a senior citizen, you can fulfil lifelong goals and save for retirement through the insurance component of life insurance.
- Post-retirement, you can live an independent life with life insurance for seniors over 60 that has a short-term.
- Moreover, life insurance policies provide tax deductions that increase earnings.
- The Income Tax Act of 1961 exempts all life insurance premium payments from tax.
- For your family to be free from financial struggles in the future, leaving an inheritance is the best approach.
- Several life insurance policies include provisions for future payments for health-related expenses if the policyholder has a chronic or existing ailment.
Conclusion
Retirees need financial security and peace of mind during their golden years, so senior citizen term insurance plans are essential. Upon the policyholder’s death, these specialised plans offer lump-sum payouts to beneficiaries.