Written By: varun saxena

varun saxena

Term & Life Insurance

I am a passionate content writer with over three years of experience in the insurance domain. An avid learner, I always tries stays ahead of the industry's trends, ensuring my writing remains fresh and includes the latest insurance shifts. Through my work, I strive to engage with targeted insurance readers.

|
Reviewed By: Sharan Gurve

Sharan Gurve

Term & Health Insurance

Sharan Gurve has spent over 9 years in the insurance and finance industries to gather end-to-end knowledge in health and term insurance. His in-house skill development programs and interactive workshops have worked wonders in our B2C domain.

Updated on Apr 08, 2025 3 min read

Term Life Insurance Plans for Senior Citizens

Experts say buying a term insurance plan at a young age maximizes policyholder security for the future at low premiums. But people these days are caught up in life’s ups & downs and miss out on getting a term insurance plan. Undoubtedly, it is not considered a wise move to secure your future. However, the term insurance eligibility age limit may vary from insurer to insurer, typically between 18 and 65 years. Whether you wish to secure your post-retirement needs or secure elderly parents to ensure financial protection, it is possible with term insurance plans. Keep reading to learn more about the importance of term insurance plans for senior citizens.

Importance of Buying Term Life Insurance for Senior Citizens

Term Insurance is an essential life insurance product to secure the life of your loved ones financially in your absence. The term insurance plans for senior citizen is designed to provide comprehensive coverage, considering their needs. So, we’ve listed why one should buy term insurance for senior citizens.

1. Financial Protection

   When it comes to securing the family’s future financially, getting a term insurance plan is one of the best ways. With a term insurance plan, you’ve saved enough funds to ensure your loved ones fulfill their daily needs in your absence.

2. Flexible Payout Options

   Term plans offer the flexibility to policyholders of payout options based on their needs. A term plan has four payout options: best payout, lump-sum, staggered, and fixed monthly payout options. You can choose the option that best fits your needs and requirements. 

3. Whole Life Cover

   As per the name, a whole life insurance plan provides coverage for the rest of your life and removes the stress of renewing an existing policy. However, it includes coverage for up to 99 years. It is an ideal option for those looking for lifelong protection plans—if they dare to keep up with the premium payments.

4. Income Replacement

   As we know, term insurance plans provide financial protection that can be used as an income replacement. It ensures that the beneficiary has a pre-decided amount of the sum insured for a predetermined period. However, the insured person chooses the pre-decided amount of the sum insured when purchasing the insurance cover.

Features of Term Life Insurance for Senior Citizens

1. Income Tax Benefits

   Under Section 80C of the Income Tax Act of 1961, insurers can avail of income tax benefits and maximize their tax savings. When you buy a term insurance plan, you’re allowed to opt for claim deductions of up to INR 1,50,000 annually for the premium paid towards the upkeep of your life insurance policy.

2. Premium Rate 

   Buying a term insurance plan at a young age is considered the best option due to the low premium rate. But if a person buys a term plan over a certain age, they will likely have to pay a higher premium amount. However, the premium may vary from insurer to insurer. 

3. Medical Test

   While buying term insurance for senior citizens, you must take a medical checkup. So, the insurer can ensure the policyholder’s fitness and overall health and enable the insurer to fix premiums and issue policies. Opting for a plan that includes medical tests before purchase is always advisable. Because term insurance plans that do not provide medical checkups prior to issuing the policy give lower coverage.

4. Optional Riders

   Riders is an extra add-on perk that can be added to the basic insurance policy. The insurer offers flexibility to the policyholders, allowing senior citizens to customize plans as per requirements to increase the plan coverage. However, the rider cost may vary from insurer to insurer.

How to Choose the Best Term Life Insurance Plan for Senior Citizens?

Buying term life insurance for senior citizens is possible, but choosing the right one that best fits your budget can be a hassle. Here, we’ve discussed about things that one needs to consider while selecting the best term insurance plan for senior citizens in India:

When it comes to purchasing a term plan, the buyer must consider keeping the future financial needs of their loved ones. To estimate enough funds for your family, you may consider factors such as the family’s budget, debts, inflation, and income replacement that might occur in your absence.

Remember that your premium increases with age to cover unforeseen circumstances due to health conditions and illnesses. Although term plans for senior citizens provide higher coverage helps policyholder protect their families without the concerns of financial comings.

While selecting the term insurance plan for senior citizens, the policyholders should also consider any add-on covers offered. It might cost you extra, but it indeed enhances your term insurance’s base cover. Add-on riders include lump sum payout of terminal illness, return of premium on survival, additional coverage on accidental death, etc.

Best Term Life Insurance Companies in India

Indeed, buying term insurance is the best way to secure your family in your absence financially. To make your selection easier for the best term insurance companies, we’ve listed 21 IRDAI-approved term insurance providers; check and compare plans briefly before purchasing a term plan.

How Buying Term Insurance after 60 will affect my Premium?

We all know that Term Insurance is a pure Death Benefit policy that provides Life Cover to the Insured against the risks of sudden or untimely death during the policy term. Generally, the Insurance Company covers an individual maximum up to the age of 75 or 85 or 99(whole-life) years.

One is eligible to buy Term Insurance till the age of 65*. However, buying a Term policy at latter stages of life/ high age will result in higher premiums. With increasing age, there is a higher chance that your health might decline which may result in certain illnesses. This effectively means that a Senior Citizen is more prone to catching major ailments which could result in death.

For a better understanding, we have compared the premiums of the ICICI Prudential iProtect Smart Term Plan (whole life cover up to 99 years) for a cover amount of Rs. 50 Lakhs at different ages. Take a look:

Take a look at the below graph to get an idea of how the premium increases with increasing age:

Graph Illustrating Rise in Premium with Increasing Age

With the help of the above-mentioned table & graph, you can analyze that premiums increase with an increase in age.

Riders in Term Life Insurance Plan for Senior Citizens

Term insurance riders provide flexibility to the policyholders to enhance their base cover. Here, we’ve listed the riders available with term insurance plans for senior citizens in India:

1. Accidental Death Benefit

   Accidental death benefit rider is an add-on feature senior citizens must consider adding to their term life or whole life insurance policy. It offers your dependents additional coverage or death benefits in case of your demise.

2. Terminal Illness Benefits

   Terminal Illness rider, often referred to as accelerated death benefit rider. It is a life insurance policy rider that gives policyholders access to death benefits before their demise if they’re diagnosed with severe illness. 

3. Accidental Total Permanent Disability

   The accidental total and permanent disability rider is one of the best add-on riders that provide financial protection to the insured person in case of a total and permanent disability due to an accident.

4. Critical Illness Benefits

   A critical illness rider provides financial coverage if an insured person is diagnosed with a critical illness throughout the policy term. Critical condition includes cancer, stroke, kidney failure, and others.

5. Waiver of Premium Benefits

   Waiver of Premium rider is an optional feature that waives insurance premiums in case the insured person becomes critically ill or physically impaired. However, to add this option feature, you might need to meet certain age and health requirements.

Conclusion

As mentioned above, the premium rate of a term plan increases with age, and age-related illnesses also increase further the older you get. So, buying a term insurance plan for senior citizens to secure a life in the long run is beneficial. Even a backup plan for securing future financial responsibilities in this fast-paced world is a wise option.