Insurance schemes | Still don’t have a term insurance plan in your 50s? Here’s why it’s never too late to buy
Still don’t have a term insurance plan in your 50s? Here’s why it’s never too late to buy
New Delhi: Term life insurance plans are policies that provide coverage to individuals for a specific period. Of all the life insurance plans, term insurance offers the highest coverage for premiums as low as a few hundred rupees, making it one of the most sought after insurance products. Term insurance plans provide coverage to the insured person for a fixed premium paid for a specific âtermâ of the year. They offer financial protection in the event of the unfortunate death of the insured during the term of the policy.
If you’re over 50, the premium for a term plan will be more than double what a 40-year-old pays. This regardless of whether you are a smoker or a non-smoker. However, it is advisable to go ahead and buy a term plan if you are the only money earner in your family and have huge financial debts to pay off.
What are the advantages and disadvantages ?
Rakesh Goyal, Director of Probus Insurance, said: âBuying insurance in your 50s comes with its own set of advantages and disadvantages. The insurance plan can be used as financial assistance by your dependents in your absence. It can also help offset the property for taxes, legal fees, or any sort of liability you may have incurred. Plus, the plan can act as an alternative source of regular income during your retirement age. The plan also comes with tax benefits that are in addition to the benefits of purchasing it.On the other hand, purchasing the plan during your 50s may result in a higher premium rate being paid, so that someone One who does not have enough savings might find it quite difficult to pay much higher rates. factors can be the limits for opting for the desired plan as per your fifties needs. Summarizing the pros and cons, it is always advisable and never too late for people to buy the policy instead of being uninsured as this plan can be a savior for many in both your retirement years and your retirement years. absence (benefits for your family). “
Here are some general life situations that will make you want to buy life insurance even if you are in your 50s.
Another expense that tends to eat away a large chunk of retiree income is a property loan. Long-term liabilities such as home loans, home loans, and auto loans are common. There are people who have not saved enough or who are in debt. âSo if you can pay off your mortgage on time for your retirement years, you’ll have one less worry. However, you may die before paying off your mortgage. This is when term insurance comes in. To cover the specific loan amount, a term insurance policy can be purchased. In the event that the person is no longer alive, the sum insured can be used to pay off outstanding loans without causing inconvenience to your family members, âSajja Praveen Chowdary told Policybazaar.com.
Consider life insurance from another angle. Your responsibilities, not your age, were the deciding factors when purchasing life insurance. The pure life insurance policy is intended for the future needs of your family. People no longer marry at 23 and have children between 25 and 28. One of the most common demographic changes these days is that more and more people postpone their marriage, while couples also postpone starting a family. Therefore, by the time you turn 50, your children are most likely still in school and may need your financial assistance; therefore, purchasing term insurance at age 50, even at a higher premium, is a wise decision. However, it is strongly recommended that you purchase term insurance in your early 20s or 30s in order to save significantly on premiums.
âPeople worked until they were 55 to 60 and then retired. However, things have changed dramatically, with a large percentage of Indians now preferring to work for at least 15 years after the age of 60. “In such a case, buying term insurance at age 50 is still a good idea, even if the premiums are higher than for age 30. Buying term insurance will protect your family from future shocks,” he said. Chowdary said.