Is it advisable to opt for term insurance as you turn 50?

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March 24, 2021 11:52 AM

Today, you can purchase a term plan to not only secure your family’s future but also take care of your retirement income needs, for instance, term plans with survival benefits.

life insurance, life insurance online, Term Insurance plan, insurance plan, term insurance, mic, my insurance club, Saral Jeevan Bima, term insurance, life insurance, IRDAI, COVID-19 pandemic, saral jeevan bima yojana, saral jeevan bima yojana LIC,These term plans are holistic plans that will mitigate your liability, provide protection to loved ones, and will support your retirement and legacy goals.

With cheaper premiums and high sum insured, term plans are known to be the best kind of life insurance policies. People usually opt for life insurance covers to avoid financial crises in case of any unfortunate event for the dependents or family members.

The primary purpose of a term plan is to provide financial support to one’s dependents and family in his/her absence, acting as an income replacement shield. These life insurance policies act as saviours in times of crisis and provide protection to the dependents of the policyholder to tackle any financial complication that may come upon them. The benefit is paid to the nominee, in case of unfortunate death of the policyholder, which can be either in monthly instalments, lump-sum, or both, as chosen by the policyholder while buying the term plan.

While buying insurance, the thumb rule is to have a term insurance cover until one’s retirement age. Having said so, if you are late in buying a term plan, should you opt for it if you are nearing your 50’s?

Kamlesh Rao, MD and CEO, Aditya Birla Sun Life Insurance says, “For someone in their 50’s, means they still have some crucial working years left. An individual must opt for a term plan and customize it as per his/her future financial goals and liabilities.”

Today, you can purchase a term plan to not only secure your family’s future but also take care of your retirement income needs, for instance, term plans with survival benefits. A term plan with survival benefit options allows the policyholder to enjoy its benefits even during his/her lifetime, by providing monthly income on attaining 60 years of age. These plans continue throughout the policy term and the nominee is then paid lump sum benefit of the sum assured, minus survival benefits if paid, in case of any unfortunate event. Rao says “Such plans ensure that the policyholder’s need for life protection and retirement income is taken care of under one plan.”

On the other hand, a whole-life term plan works, Rao says, “in case, one plans to leave behind a legacy for his/her loved ones, besides retirement income.” These plans provide coverage until 100 years of age and help the policyholder save ample corpus for his/her future generations. He adds, “In addition, it also provides flexibility to reduce the sum assured at a pre-defined retirement age, allowing it to align with the policyholder’s cover as per any outstanding liability that he/she may have.”

These term plans are holistic plans that will mitigate your liability, provide protection to loved ones, and will support your retirement and legacy goals.

Even though term insurance policies give protection against untimely death, however, insurance companies classify such deaths into various categories, based on which the deaths are covered or not covered is decided and the insurance company declines or pays the death benefit to the policyholders. Hence, understand and go through the fine prints of your policy before purchasing it.

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