It is important to help your elderly feel secure and protected at all times. Senior life insurance plans serve to be a small but effective step in this direction. Such policies are generally designed to ensure adequate financial care for the elderly as they approach their retirement and old age. The family protection plans in India are also targeted to take care of the financial requirements of your aging parents in case you are not around to help them at any stage of their lives.
Here’s a quick look at some important factors of consideration that have to be kept in mind while purchasing life insurance for the elderly.
Focus on Age, Premium, and Provider
Choosing the best insurance policy for the elderly may prove to be a confusing task in view of the large number of insurance providers and plans available in the marketplace. So, how do you shortlist the ones that meet the requirements of your elderly to a large extent?
1. Research well
An easy way out is to research on the plans available online on insurance comparison sites like Coverfox.com. Once you have shortlisted the best life insurance policies from the top insurance providers in India, you need to compare them to finalize the right plan as per your budget.
2. Ascertain age and coverage
Narrow down your search by focusing on the age of the person who has to be insured. Remember, the age of a policyholder and the insurance premium amount is directly proportional to each other. Higher the age, higher is the premium as the risk to the insurance company increases accordingly. The challenge lies in zeroing in on the right policy in terms of age and coverage; especially because of the deteriorating health of most elderly people.
3. Understand coverage needs before comparing policies
Next, you need to figure out the pros and cons of different life insurance policies for seniors. It is recommended that you go about the process after ascertaining and understanding the diverse needs and challenges that elderly people have to go through as they age. Once done, compare the underlying costs and benefits to take a decision on your final choice. You may want to shortlist the top 5 life insurance companies in India and compare their plans for the elderly as per the points discussed above.
Family Protection Plans – Pros and Cons
One of the main reasons for investing in family protection policies is to provide financial security to retired seniors. Given below are the pros and cons of buying life insurance for the elderly.
1. Income during old age
Such plans focus on taking care of the financial needs of retired people in case the policy matures in their lifetime. They serve as a reliable funnel for savings and bring in a lump sum amount at the end of the policy term.
The cash so received comes in handy for paying off existing debts, medical expenses, mortgage payments, personal loans, credit card bills, and other living costs.
2. Tax benefits
Buying such policies allows policyholders to avail income tax redemption in line with the laid down regulations of the Income Tax Act, 1961.
3. Social security benefits
There are certain life insurance plans for the elderly that offer regular income streams (annuity) in their retirement years.
The cost of life insurance for seniors differs as per age. Also, certain factors like lifestyle, health, family history, etc. may come in the way of getting lower premiums for bigger coverage.
As life insurance plans in the country are relatively low priced, it is easy for wage earners to insure the lives of their seniors without pinching their pocket. The returns given by these plans allow the elderly to maintain their lifestyle with dignity even when they have no regular source of income to rely upon.
The best part is that the death benefits have been structured to pass tax-free to the nominees. Given these and other benefits, it certainly makes good sense to start comparing the best life insurance plans for seniors right away. Log on to Coverfox.com to enable your research and purchase of the best life insurance policy for your seniors.