Features of Senior Citizen Term Insurance Policy
The following are some of the key features of a term insurance plan for senior citizens:
Age Limit:While the age of entry for availing a term plan is 18 years, most life insurers in India allow senior citizens up to the age of 65 years to purchase a term insurance policy. Additionally, this insurance cover can be extended up to the age of 85 years. So in the case of the policyholder’s demise before the age of 85 years, the insurer will pay the sum assured to the nominee.
Death Benefit: Term plans are pure protection plans so, in the event of the senior citizen policyholder’s demise during the policy term, the insurer will pay out the sum assured as death benefit. This pay-out will be made to the registered beneficiary or nominee specified in the life insurance policy contract
Premium Payable:The benefit of any life insurance policy remains in effect till the policy matures as long as all due policy premiums are paid. While term plans are considered to be the most affordable life insurance policy variant, the premium amount increases the older a policyholder is at the time of purchasing the term plan. Prospective policyholders can know the premium payable for their senior citizen term plans by using the online term plan calculator.
Medical Test: At the time of purchasing senior citizen term plans, the prospective policyholder has to undergo a medical test. This is done to ensure that any pre-existing conditions like diabetes or cardiovascular disorders are known to the insurer at the time of insurance purchase. The existence or absence of pre-existing conditions impact the premium payable for a senior citizen term plan in India.
Add-on Covers Available:Term plans including those for senior citizens are offered with optional add-on covers that can enhance the coverage provided by the death benefit of a term policy. However, this enhanced coverage usually comes come at an additional cost. Examples of add-on covers available with a senior citizen term insurance policy include accidental death benefit, waiver of future premium, return of premium, terminal illness cover, etc. These add-on covers are not mandatory and can be availed as per the policyholder’s unique requirements.