Suresh, Una: I am 62 years old. I want to purchase term insurance. Please advice.
Term insurance is a pure protection plan, which means the sum assured is paid to your dependants whom you have nominated in case of your unfortunate demise during the policy tenure. The premiums of term insurance plans are the lowest amongst all the variants of life insurance policies that are available in the market.
However, the premiums of term insurance go up after 40 years of age. Hence the premium at 62 years will be significantly high.
Its better late than never. So, even at 62 years of age if you do not have any other life insurance, you can opt for a Term Insurance. However, factors like the source of income, your current health are considered by insurance companies before issuing a policy. You can also opt for whole life policy, which gives you cover up to 100 years of age along with maturity benefit.
You can do a self-assessment of your financial situation and decide on the money you want to leave as a legacy to your family in case of your unfortunate demise. Based on these assessments, you can decide on the sum assured, which will determine the premium that you need to pay.
In addition to the above, you will also get a tax benefit on the premium amount under section 80 C and section 10 (10 D) for the sum assured.
So, yes go ahead and opt for the plan which best suits your needs but do remember to state every major and minor aspect about your health conditions, so that once the policy is issued, there is no concern at the time of claim.
The query is responded by Co-Founder, Turtlemint.