What are the best term insurance plans for Senior Citizens in India for 2022?
Mr. Shukla aged 61 years is retired and lives with his wife. While their son and daughter are settled abroad, he chose to stay in India. Mr & Mrs. Shukla have diabetes and are on regular medications. Mr. Shukla was greatly shaken by the COVID-19 pandemic and was worried about his wife’s welfare in case something untoward happens to him. Also, the repayment of the loan he had taken for the renovation of his house would get completed only after six years. To secure the financial commitments in his absence, Mr. Shukla searched for the best term insurance for senior citizens and sought help from his friend, who guided him to buy a term plan online. Like Mr. Shukla, many Indians don’t realize the importance of term insurance during their early years and understand it later.
A term insurance policy is one of the cheapest forms of life insurance. It provides financial benefits to your family in case of any unfortunate events such as death, disability, or illness that might happen to you. The premiums are very low when a person buys the term policy during his younger years and hence the reason for financial experts to advise everyone to purchase a term plan as soon as they start earning.
If you are above 60 years of age and thinking whether there is any term insurance for senior citizens – the answer is yes. Although there are no specific term insurance plans for senior citizens, the eligible age prescribed by insurance companies to avail of a term plan is 65 years, which makes it possible for even senior citizens to buy them.
Having said that, the premiums for such plans could be really high since the age at which you enter is also high. In addition, you may also be asked to go for a medical test to ensure that you do not suffer from any pre-existing medical condition that would increase your risk profile. Hence, it is required that you disclose all the facts related to your health at the time of taking the policy; else, there will be issues at the time of claim. Finally, the sum assured, or the coverage amount for senior citizens could also be lower because of their age factor and limited policy term.
But as the saying goes, “Something is better than nothing” – it is better to have yourself covered rather than have no insurance at all and getting exposed to risks of life. So, let’s know about term insurance for senior citizens.
Term plans for senior citizens: LIC is the oldest public sector life insurance company in India and has a lot of trusts among Indians. But while looking to shortlist your desired plan, a majority of the elders look for the best LIC plans for senior citizens and limit their search. Nowadays, many new generation insurance companies are offering term policies at competitive premiums, which can also be explored.
The following list should help you to fasten your decision-making process in choosing the correct term life insurance for senior citizens, as we list the plans, their features, and benefits.
List of 16 Best Term Insurance Plans for Senior Citizens in India for 2022
|Plan Name||Maximum Entry of Age in years||Maturity age (in years)||Sum assured (minimum)||Claim Settlement Ratio (CSR)|
|LIC Tech Term||65||80||₹ 50 lakhs||96.69%|
|LIC Jeevan Amar||65||80||₹ 25 lakhs||96.69%|
|HDFC Click2Protect Plus||65||85||₹ 10 lakhs||99.07%|
|Max Life Online Term Plan Plus||60||85||₹ 20 lakhs||99.35%|
|SBI Poorna Suraksha||65||75||₹ 20 lakhs||94.52%|
|Tata AIA Maha Raksha Supreme||65||85||₹ 50 lakhs||99.06%|
|ICICI Prudential iProtect Smart Term Plan||65||75||subject to minimum premium||97.84%|
|Bajaj Allianz Smart Protect Goal Term Plan||65||85||₹ 50 lakhs||98.02%|
|Canara HSBC OBC iSelect Star Term Plan||65||80||₹ 25 lakhs||98.12%|
|PNB MetLife Mera Term Plan Plus||60||75||₹ 10 lakhs||97.18%|
|Kotak e-Term Plan||65||75||₹ 25 lakhs||96.38%|
|Aditya Birla Sun Life Insurance Life Shield Plan||65||85||₹ 25 lakhs||97.54%|
|Bharti AXA eProtect Term Plan||65||75||₹ 25 lakhs||97.35%|
|Aegon Life iTerm Plan||65||100||₹ 25 lakhs||98.01%|
|Exide Life My Term Insurance||65||75||₹ 25 lakhs||98.15%|
|Future Generali Flexi Online Term Insurance Plan||55||75||₹ 50 lakhs||95.28%|
However, before taking a term life insurance policy, one must seriously consider discussing it with their partner, especially if you are above 60 years. As they have all the rights to know what and why you are putting your money in a plan. Not only this, but it also makes them aware of the benefits claim process just in case you are not there to guide them further. It would be best if you calculated the debts and liabilities that are to be taken care of since availing of a term plan with less coverage might end up giving more stress. Nobody can control the events that might happen around us, but we can always be prepared and plan accordingly for the not-so-good days. Therefore, financial planning must start at an early age as it gives a lot of scopes for you to experiment and make risky decisions, which you might not be able to do after a certain age.
Best Term Insurance Plans for Senior Citizens FAQs
What is the maximum age limit for term insurance?
The maximum age limit for buying a term insurance plan is 65 years. The average maturity age is between 75 to 80 years.
Which LIC policy is best for senior citizen?
The best LIC policy for senior citizens is Pradhan Mantri Vaya Vandana Yojna, which is offered to people with minimum entry age of 60 years and there is no maximum age limit. It offers a minimum monthly pension of Rs. 1000, and maximum monthly pension of Rs. 9,250. The policy term for this LIC plan for senior citizens is 10 years.
How to choose best term insurance plan for senior citizen?
When buying a term insurance plan for a senior citizen, you must consider these important factors:
1. Age Limit
2. Premium Rate
3. Rider Benefits like No Maturity Benefit, Death Benefit,
4. Insurance Coverage
5. Health Check-up
6. Critical Illness Cover
7. Tax Benefits
8. Claim Settlement Ratio
Which is the best term insurance plan for senior citizens in India?
Based on the maximum sum insured option and best claim settlement ratio, the 10 best term insurance plans for senior citizens in India are:
1. LIC Tech Term
2. LIC Jeevan Amar
3. HDFC Click2Protect Plus
4. Max Life Online Term Plan Plus
5. SBI Poorna Suraksha
6. Tata AIA Maha Raksha Supreme
7. ICICI Prudential iProtect Smart Term Plan
8. Bajaj Allianz Smart Protect Goal Term Plan
9. Canara HSBC OBC iSelect Star Term Plan
10. PNB MetLife Mera Term Plan Plus
Can a 60-year-old buy term insurance policy?
Yes, a 60-year-old senior citizen can buy a term insurance policy because most of the insurers offer their plans for a maximum age of 65 years. However, still cross-check the maximum age of eligibility before purchasing a term insurance policy.
At what age is term insurance not needed?
The maximum entry age for a term insurance plan is 65 years and the maturity age for some plans goes up to even 75 to 80 years. However, not many insurers are willing to offer term insurance at this age. So, choose a plan as per your requirement and if you are in a position to pay the premium.
What is the maximum age limit to buy term insurance?
The maximum age limit to buy a term insurance plan in India is 65 years.