Term insurance is a financial tool that replaces the income loss because of the sudden demise of the insured or the bread earner by providing financial assistance to assist the family. This situation normally pop-up a question- Does it make sense for Senior-citizens to Invest in Term Insurance?
Well, most people will say no, whereas there are a few situations where investing in term insurance by the senior citizens will make sense. Don’t forget that investing in a term insurance plan at this age might cost high. Moreover, many insurance companies might not offer term insurance to old age people. So, it is important for you to invest in term insurance at this age more prudently.
Let’s have a look at different scenarios where it is where investing in term insurance at old age will be worthy:-
Kids are still dependent on you
It will be important to have a term insurance plan at this age when your family or kids are still dependent on you. If your kids are still studying then it is highly important to add term insurance in your portfolio.
You want your wife to be independent
If your wife is dependent on your pension and you don’t own any provision of a family pension then investing in a term insurance plan will surely make sense. When you know there is no scope of income for her after you, then you must make an investment in term insurance.
You are still working after retirement
You need a term insurance plan for sure when you are still working after retirement to deal with financial liabilities. It would provide the required financial cover to your family to deal with financial liabilities in case of your demise.
You have unpaid liabilities and debt
Normally major loans that include home loan stretch for 50 to 60 years. Moreover, there would be an amount that you owe to family or friends. In such a case having term insurance definitely, make sense. If there is any unwanted thing that happens, term insurance will be there to clear them.
The goal of the term insurance is to ensure that your family can live a happy and independent life even after you. They don’t have to hustle for meeting their basic needs and no pressure to clear your liabilities as well. Those who are working and have a dependent family should definitely go for it and those who are independent and not working can skip. It is always advisable to invest in a term insurance plan as soon as possible as with the growing age you might have to pay a high premium to insured yourself.
Views expressed in this article are the personal opinion of Naval Goel, CEO & Founder of PolicyX.com.