- Changing demographics and lifestyle choices mean that individuals might have financial liabilities well into their retired life
- Term insurance can protect senior citizens who are servicing debts
- In the absence of a parent, term insurance cover can safeguard a child’s expenses towards higher education or wedding
- A term plan brings peace of mind and lends the confidence to live life to the fullest
While India boasts of demographic dividend unlike any other, the elderly population in India has been increasing at an alarming rate. Here are some statistics from India Ageing Report 2017 published by United Nations Population Fund (UNFPA).
The report says that the elderly population was 77 million in 2001, this has increased to 104 million in a decade, and will increase to 20% of the total population or 300 million by 2050. This trend can be attributed to advancement in healthcare, improved accessibility to hospitals and higher awareness about diseases and preventive interventions.
Based on the recent Health at a Glance 2017 report by OECD, the life expectancy has increased by 10 years to 68.3. The repercussion of this trend is that financial plans need to be re-revisited, to account for financial liabilities continuing post the retirement periods. In order to help sustain the family’s lifestyle, in their absence,one needs to make smart financial decisions. Availing a term plan is one of them.
Term Plans For Senior Citizens
Few years back, it might not have been possible for senior citizens to avail term plans. However, today, even individuals over 60 years of age can get term insurance, subject to clearing medicals. Here are some reasons senior citizens must consider buying term insurance:
Financially Dependent Children
Today, one of the popular demographic shifts is that more and more people delay getting married. At the same time, couples also delay starting a family. This trend has led to a peculiar situation – by the time the parents touch 60, the kids are still getting education and require financial assistance.
This means that even while the biological clock ticks ‘retirement’, the financial situation begs to differ. Hence, in order to ensure the child’s financial needs are covered, opting for a term plan is a wise decision. It brings peace of mind and spells fiscal prudence.
Outstanding Debts and Liabilities
You’ll find individuals who are well past their retirement age, but are compelled to find part-time jobs to make ends meet. These are generally people who have either not saved enough, or are servicing debts. Liabilities like home loans, loan against property and vehicle loans are generally availed for long tenures. Hence, it is likely that a senior citizen might need to work a few extra years to pay off the EMIs. This is where term insurance becomes invaluable.
A term insurance policy can be bought to cover the specific loan amount. In case the individual is no longer there, the sum assured can serve to pay off outstanding loans without causing financial inconvenience to the surviving family members.
Caring for your Spouse
As you enter the golden period, you want to slow down and retire peacefully. However, while you plan this life of solitude, you want to ensure that even in your absence, your spouse will have the required means and resources to stay independent and live the life you planned together. A term plan can help build this certainty.
By availing a term insurance plan for senior citizens, you can rest assured that your spouse will have the financial support to meet his or her aspirations and needs, even when you are not around.
Exide Life Insurance offers term plans that are suited for any life stage. Browse through our website to learn more and to explore our solutions. If you already know your requirement, click here to get a quick quote.