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Should a pensioner purchase Term insurance?

You can buy Term Insurance if you want your spouse to be independent, kids are still financially dependent on you, have unpaid debts and liabilities or want to leave behind a legacy for your kids. Read ahead.

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2 mins 59 secs
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Last Updated - September 6, 2023
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Most people imagine retirement as leisure time. It’s a moment for you to sit back, relax and finally reap the benefits of all the hard work that you have been putting in for years. Having said that, it is crucial that you take the required steps to guarantee that your retirement years are secure. Term insurance compensates the income lost when the breadwinner passes away. So, does it make sense for a pensioner to purchase Term Insurance?

Who is eligible to buy Term Insurance after 60?

Earlier it was really difficult to buy Term insurance for the elderly. But now, it has become easier. However, it is subjected to the Terms & Conditions of the company and strict scrutiny. After clearing all the medical tests, one can buy Term Insurance.

Reasons to buy Term Insurance even at the age of 60

Independence of spouse: Many retirees who take care of their spouse financially use funds from their pension. If you don’t have a provision of a family pension then buying Term Insurance will make your spouse self-reliant after your demise.
Kids are still dependent on you: Nowadays, it is a common scenario owing to late marriages that kids are still financially dependent on their parents even after retirement. So, if your kids are still financially dependent on your income, securing your income by buying Term Insurance makes the most sense.
You have unpaid debts and liabilities: If you’ve any major loans like Home Loan or a Business Loan that are still unpaid or have borrowed money from any relative or a friend, buying Term Insurance would save your family from lenders post your demise.
Leaving behind a legacy: Many people wish to build a legacy for their children and want to be remembered in their time of need. Term insurance can help you do that by leaving a healthy corpus for your spouse and children post your demise.

It is always better to buy Term Insurance at an earlier age to avoid higher premiums but as they say, ‘Better late than never.’ A Term Insurance can not only provide financial support in distress but also peace of mind knowing that your family is financially secured after you. 

You can Compare Term Insurance Online on MyInsuranceClub. If you need any further guidance, our trained insurance advisors at MyInsuranceClub will assist you with all your queries.

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Author

Abhishek Kumbhar is an Insurance Analyst with rich experience in the Finance Industry. With his extensive knowledge and exposure of the Insurance sector, he writes articles to provide insights about different aspects of Insurance.