Are you a senior citizen looking for a term insurance plan? If yes, then you are not alone. Many senior citizens in India realise the importance of term insurance and its benefits for themselves and their families.
Term insurance plansdisburse a lump sum of money to your nominees or beneficiaries in case of your unfortunate demise during the policy term. Term insurance is one of the most affordable and cost-effective options for individuals.
However, buying term insurance for senior citizens is not as easy as it sounds. There are many challenges and factors that you must consider.
To help you with this, we have compiled a list of 5 best term insurance plans in India for senior citizens.
5 Best Term Insurance Plans for Senior Citizens
Term insurance meaning is the same for everyone – provides coverage for a specified period ensuring financial protection for beneficiaries in the event of the policyholder’s death. However, the features of these plans may vary.
Bajaj Allianz Term Plan
Bajaj Allianz Life Insurance offers term plans with comprehensive benefits and advantages. They have a vast network of branches spread across the country for the convenience of their customers. The plans can be purchased online as well as offline. The term plans come with the following features:
- High claim settlement ratio of 99.04%: A high settlement ratio is an indicator of the company’s ability to pay the sum assured to the nominee.
- Flexibility to choose the policy term, premium payment term, and premium payment frequency. The coverage is offered in different variants – the return of premium plans, joint life plans, increasing or decreasing plans, etc.
- Option to add riders for additional protection against accidental death, disability, or critical illness, waiver of premium rider, etc.
- Option to return the premiums paid at the end of the policy term with Life Shield ROP variant
- Option to skip premiums for up to three years with Premium Holiday feature
- Choice of 6 plan options with varying benefits under the Pension Guarantee Plan
- Exclusive health insurance policy for senior citizens under the Silver Health Plan
- Coverage for hospitalisation expenses and daycare procedures
LIC e-Term Plan
LIC e-Term Plan is an online insurance by Life Insurance Corporation of India (LIC), India’s largest and most trusted life insurance company. This plan offers high sum assured, low premiums, flexible policy term, and optional accidental death benefit rider. Some benefits of thisterm insurance plan are:
- High claim settlement ratio: LIC has a claim settlement ratio of 99.06% for the financial year 2020-21, meaning it has settled almost all the claims made by its policyholders.
- A vast network of branches: LIC has more than 2000 branches across India, making accessing its services and support easy.
- Tax benefits: You can avail of tax perks on the premiums paid and the demise benefit received under this plan as per the Income Tax Act of 1961.
- Hassle-free online application: You can apply for this plan online through the LIC website without intermediaries or agents. You need to fill out an online form, upload the required documents, and pay the premium online.
Aegon Life iTerm Plan
This plan is offered by Aegon Life Insurance Company, a joint venture between Aegon N.V., a global life insurance provider, and Bennett, Coleman & Company, India’s leading media conglomerate. Some of its benefits are:
- High claim settlement ratio: The claim settlement ratio is 99.03%.
- Lifetime coverage option: You can opt for a lifetime coverage option, which means you can get life coverage till the age of 100 instead of the usual 80 years.
- Free health check-ups that can help you monitor your health and wellness.
- Terminal illness perk: If you are diagnosed with a terminal illness, you can get 25% of the sum assured in advance, which can help you with your medical expenses.
Max Life Insurance Online Term Plan Plus
A joint venture between Max Financial Services, a leading Indian multi-business corporation, and Mitsui Sumitomo Insurance, a Japanese insurance giant, offers this plan. Some of the benefits of this plan are:
- High claim settlement ratio
- Comprehensive coverage
- Tax benefits
- Premium waiver on disability: If you become permanently disabled due to an accident, you don’t have to pay any future premiums under this plan, and your life cover will continue.
- Three payout options: You can choose from 3 payout options under this plan, which are lump sum, monthly income, and increasing monthly income.
IDBI Senior Citizen Term Insurance
Offered by IDBI Federal Life Insurance Company, a joint venture between IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks, and Ageas, a multinational insurance company, this plan offers multiple benefits:
- High claim settlement ratio
- Easy eligibility criteria: You can buy this plan if you are between 50 and 85 years of age, without any medical tests or health declarations. You only have to respond to a few straightforward questions regarding your lifestyle and habits.
- Tax benefits
- Guaranteed death benefit: You can get a guaranteed death benefit of at least 105% of the total premiums paid under this plan, irrespective of the cause of death.
- Loan facility: You can avail of a loan of up to 80% of the surrender value under this plan in case of any financial emergency.
Depending on your comfort and priority, you can analyse and buy the best term insurance plan for senior citizens online or offline. However, before buying any term insurance plan, read the policy document carefully, understand the terms and conditions, and check the exclusions and limitations.