With term insurance plans you can provide full protection and financial stability to your loved ones at an affordable premium for a term or a specific period. Upon the unfortunate death of the insured policyholder, the beneficiary or dependents can rightly claim the amount invested by the insured. As pure protection plans, they provide a robust financial backup, i.e. higher life covers at lower premiums and you can make the payments monthly, quarterly or yearly as per your convenience. The tax benefits of term insurance include exemption of the maturity amounts and the deduction of the premium paid in a year. Under Section 80C of the Income Tax Act 1961 you can avail exemption up to Rs 1.5 lakh.
While you may acknowledge these benefits of term insurance, most of us think we can only take life insurance until the golden age of 60 or 65 years. This is, in fact, is not true. Nowadays the term insurance policies coverage has been extended from age 75 years to age 99 years. The product offers a comprehensive and flexible cover with multiple options to financially protect the insured and your family. We give you 4 reasons as to why you should not stop your term insurance cover at 65 years of age.
- Protection beyond the earning stage
For starters, you may wish to avail protection benefits beyond just the earning years. Nowadays people are settling later in life, and there might be loans or expenses that still need to be paid even as you have entered your 60s. The benefit of term insurance at this stage means that in the unfortunate event of your demise, your beneficiaries will at least be able to take care of these expenses without any hassle.
- Providing for debts and liabilities
Again, since people are settling later in life, it is possible your kids are still young when you retire. You may continue to have dependents and existing assets may not be enough to take care of the needs of the family. Having term insurance in place will provide that much needed financial cushion for your kids’ needs.
- Financial legacy
You may look at life insurance cover as a financial legacy for your family - something to leave them with, as a parting gift.
- To share the burden of pensions as a source of income
A term insurance plan helps combat the uncertainties of life when the only source of living is pensions. Beyond this, the benefits of term insurance extend to the optional riders. Riders are additional covers provided with the basic policy through the payment of an additional premium. Riders are useful since they allow you to shape your insurance policy to suit your individual needs, at a nominal premium. So if say a personal accident causes a disability, the accidental disability rider will come in handy to make up for the loss so caused.
As you can see, there are underrated benefits of having a life cover even past the age of 65 years. Make sure you opt for a term Plan that lets you extend your cover beyond!