4 reasons why you need a term cover beyond 65

Every individual’s life can be divided into three different phases of life: early teen years, middle-age years, and old-age years. During your adulthood, you might primarily focus on building your career. The middle-age period revolves around building a family. As you grow older, you might have an increased number of financial responsibilities. While your flow of professional income can stop, your financial dependents in your family might rise at the age of 65. 

The pace of life can be dynamic. Although you might have accumulated a substantial corpus for yourself and your family during active working years, you might fail to predict future requirements. During an emergency, your hard-earned savings can be utilized fully, which might leave you empty-handed in the future. Since you cannot take any financial burden at 65 years, you should purchase term insurance coverage. 

Before buying term insurance plans, let’s begin by understanding what is term insurance plan in detail: 

Term insurance is a protection plan to secure the financial well-being of your family. It secures your family members in your absence by offering a payout called as a death benefit. With a death benefit, your family can protect themselves from any financial contingency, which arises in your absence. That way, you would not have to worry about your family’s finances even after your retirement. 

Term insurance plans are convenient, affordable, and the simplest form of insurance. Moreover, it provides financial support over a specific period of time. In addition to this, there are top four reasons, which are given below to purchase term coverage at the age of 65:

  1. To manage the expensive healthcare treatments

As you grow older, the severity of diseases can increase. As a 65-year-old individual, you can be prone to severe health conditions like stroke, cancer, heart attack, and so forth. Therefore, it is imperative to cure such life-threatening diseases to avoid hazardous consequences on your health, which can lead to death. However, many of you might delay medical treatments due to the skyrocketing hospital bills today. If you have a term insurance at the age of 65, you can be covered against medical emergencies without creating a hole in your pockets. 

  1. To leave a financial legacy behind you

Your family can be your top priority. Therefore, you might want your family to cherish every moment of their life without worrying about financial constraints. However, your loss can affect your family financially, as well as emotionally. During an unfortunate event, having term insurance helps your family to sustain financially over a long period in your absence. Term insurance provides a long-term and tax-free corpus for the financial well-being of your loved ones. 

  1. To meet the financial requirements of your family

Today, many of the Indians might live in a nuclear family after their marriage. According to a report in 2019, approximately 41.5% of the Indian population lives with their spouses and children. Since your partner and child might be dependent on you, you should buy term insurance up to 75 years of your life. The term insurance plans can allow you to clear your past liabilities as well as meet the financial needs of your family with ease. 

  1. To safeguard your retirement 

In India, the usual retirement age is between 55-65 years of age. However, many of you might continue to work after crossing the retirement age to save more money for your loved ones. Today, retirement is no longer about the age but the number of accumulated funds you have generated to live a stress-free life without your professional income. Although you have crossed 65 years, see to it that you continue to reap the benefits of term insurance coverage. As a policyholder, you can pay your premium for a limited time and extend your cover beyond 65 years. 

In a nutshell, term insurance benefits can be applicable to every individual irrespective of the age. If you want to reap the benefits for a long duration, purchase your term policy at a young age. However, compare multiple term plan options in the market before purchasing a final plan. Moreover, identify your family’s needs and select a term plan accordingly. 

Paul Petersen

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