Life Insurance Policy for People Above 50 Years – A Complete Guide 2023

“What would happen to my family if I had to leave the world unexpectedly?” This is one question that strikes us all at some point in life. And it is a very genuine question that requires a genuine solution. 

Now Picture this – You are a single earning member of your family and are in your late 40s. You have 5 dependents, including your aged parents, two children, and spouse. Now, since you are the sole breadwinner, you are worried about the financial security of your dependents in case anything untoward happens to you. So, what are the possible options that you have to secure your loved ones without creating a hole in your pocket? Yes, this is when term insurance comes to your rescue.

Generally, people perceive that term insurance should be availed at a young age to enjoy its benefits. However, the fact is, be it young or old term insurance can be considered to secure a family monetarily at any age.

Why do Individuals in their 50s Require Life Insurance?

With age, the priorities of people change. The security and well-being of your near and dear ones become significant to you, which you want to ensure at any cost. A term life insurance plan is a sure-shot way to secure the lives of your dependents or yourself.

Life insurance at 50 years of age will not just cover a family for a burden-free future, but it will also cover the insured against several critical diseases.

Benefits of Buying a Life Insurance Policy at 50 years of Age 

Let us take a look at some of the benefits of buying a life insurance policy in your late 40s or early 50s:

• You can be at peace about the monetary security of your family in the future, even in your absence
• You can be safe against the expenses in the likely case of any critical illness in your later years
• Buying life insurance in your 50s would mean that the term of the policy will be short as compared to the long tenure that you need to pay for in case of buying a policy early on in life
• The beneficiary can receive the death benefit immediately in case of the death of the insured during the policy tenure
• A term policy in your 50s will ensure that your loved ones receive a fair chance to continue life without much financial constraints even after your death
• You can also avail of tax benefits under various sections of the Income Tax Act

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How to Choose a Life Insurance Plan?

Choosing a term plan, especially in your 50s, might turn out to be a tiring task. Hence, one needs to do some good research to compare plans before buying them. Below are some key aspects to consider before choosing a life insurance policy:

1. Check for Rider Benefits:

Accidental disability rider, accidental death rider, critical illness rider, and income rider are some riders that are available with term plans. It is important to look for those riders in your term insurance policy to enhance the coverage of your plan

2. Look for Medical Coverage:

With age, people become prone to diseases. So, the next important thing to look for while choosing a life insurance policy is the medical coverage offered with your term plan. Various term plans allow different rider benefits to cover your health under the plan. For instance, some term plans will allow coverage against 10 critical diseases, while others might allow against 20. Also, some plans might require the insured to pass through a medical check-up based on which the coverage is decided. All these things must be considered while buying a term plan in your 50s.

3. Check the Tenure of the Plan:

Your term plan would be short when you buy a term plan in your 50s. However, some insurance companies allow the facility of tenure extension. So, you can look for such plans to get better coverage for life

4. Check the Premium Paying Mode:

Policy providers generally offer various options to policyholders to lower the premium rates, especially for people who cannot afford huge premiums. Also, they give multiple modes of paying the premium. You may pay your premium monthly, quarterly, semi-annually and yearly. So, look for policies that allow the most suitable mode of payment for you

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To sum up

It is a common perception that buying a term plan in your 50s is not a good investment. However, for any investment to turn good, what is required is proper research. Hence, do good research and choose an appropriate plan to turn it into an excellent instrument to suit your needs of securing your family.

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