Term insurance is the simplest form of life insurance that enables you to financially safeguard your family and fulfill their financial needs as they emerge. It is generally said that starting early is the right approach to savings and investment and the same is true of insurance as well; this is because when you buy a term insurance policy in, say your twenties or thirties, the premium amount you need to pay tends to be lower than if you were to buy a policy later in life.
However, age is not the only criterion for buying a term insurance policy and you can certainly buy a term plan even if you have crossed a certain age.
Why you must buy a term insurance plan even at the age of 50
You should consider the benefits of term insurance whilst deciding the coverage you need. When you cross the age of 50 years, you would have a certain lifestyle and financial commitments that would materialise in the short or medium term, including the following.
- The expenses pertaining to the higher education and/or wedding of your children;
- Unforeseen medical emergencies concerning your children or spouse that could need long-term expenditure and care;
- An uneven flow of income post-retirement;
- Any other liability that cannot be discharged by your savings.
Keeping the aforementioned factors in mind, it is advisable to assess and compare different term insurance plan benefits and make an informed and prudent choice.
Here is how you can purchase a term plan
The premium for term insurance plans is computed on the basis of the age of the proposer, the sum assured, and any pre-existing medical conditions or illnesses. It is possible to buy a cheap term life insurance policy if you can smartly scout for plans that offer several add-on benefits at an affordable cost. At the age of 50, the extent of the term policy coverage and the ease of transactions are extremely important.
There are many insurance companies that sell term plans online. For instance, Tata AIA, one of the country’s leading insurers, offers a wide range of term insurance plans online. A TATA AIA term insurance plan can be purchased online by following a few simple and easy steps. You need to input the required details in the online application for the selected policy and the company’s 24×7 support team can provide adequate assistance to you.
Here is how a term plan can help you meet your financial needs
Let us understand how a term plan can help you fulfill your financial needs. Consider the hypothetical example of Mr. Harish who had quit his high-paying job as the finance head in a leading MNC due to extreme work pressure and associated health issues. He took up another job that was less stressful but it did not pay him as much as he was earning earlier. His daughter had just started studying medicine at a prestigious private medical school abroad and she had six more years remaining in her academic programme and his son’s education loan was about to end in a year.
Furthermore, he wanted to secure seed capital for his technological start-up. Although Mr. Harish had saved a significant percentage of his salary, there was still a wide chasm between his financial needs and resources. To make matters worse, Mr. Harish got diagnosed with a cardiac condition, adding further uncertainty to his family’s financial future.
Therefore, Mr. Harish decided to buy a term plan that offered him several benefits, including flexible death benefit options, the option to top-up the sum assured, income payouts at different predetermined intervals, additional protection through riders, choice of premium paying term and policy term, etc. The decision to buy a term insurance policy allowed Mr. Harish to feel safe about the financial security of his family.
You must choose a term insurance plan wisely even if you have crossed the age of 50 years. However, you must carefully assess your financial needs and analyse different plans before making your selection.