Should Senior Citizens Buy Insurance?

When Mr. Sharma was 40 years old, he knew exactly how to tackle his finances and investments. He had a family to support, which included a wife, two children, and aged parents. Therefore, he used to invest regularly in various insurance and investment plans, including a life insurance plan, mediclaim plan, and a long-term savings plan.

Fast forward to today, and Mr. Sharma is a 65-year old retired person. Both his children are now well-settled, and he is a proud father as well as a grandfather. However, Mr. Sharma is now in a dilemma of what he should do with his retirement corpus and monthly pension. Should he re-invest his money in a savings plan at this age, or should he buy some insurance plans?

If you, too, are facing the same dilemma as Mr. Sharma, this article is for you. We will tell you if it is beneficial for senior citizens to buy insurance plans and what are the best investment options for them at this age. Continue reading – 

Life insurance for senior citizens

Most senior citizens have little or no debts after their retirement. Their children tend to be established by this time, and they usually have no dependents. So, one may wonder what's the need for life insurance for them. However, life insurance is something that is useful at every stage of the policyholder's life.

Senior citizens too may have an unpaid home loan or a business loan, and they may want to support their spouse without depending on their children. Some may also want to leave a legacy for their children after they are no longer with them. All these reasons make life insurance policy helpful even for senior citizens.

Saving Plans for Senior Citizens 

Apart from the insurance products, senior citizens should also invest a part of their money in savings plans. Since equity markets involve a fair bit of risk, they are not considered very suitable for senior citizens. Instead, they should invest their money in guaranteed savings plans that offer a decent interest rate with very little to zero risks. Also, such a savings plan comes with an assured life cover that helps stay safe from life’s uncertainties.

Regular investments in these savings plans allow senior citizens to build a corpus for their present and future. They can use the accumulated money to tackle a medical emergency or fulfil their wishes during the golden years of their lives.

Health insurance for senior citizens

The constantly rising medical inflation has made health insurance imperative for everyone. It's even more necessary for senior citizens since they are more prone to illnesses, infections, and injuries. As per the Union Ministry of Family and Health Welfare, almost two-third of senior citizens in India suffer from some chronic disease.

A health insurance plan is necessary to tackle the exorbitant costs related to the treatment of such diseases. Many insurance companies offer specialised health plans for senior citizens which are tailor-made to suit their unique requirements.

Below are some suitable investment plans where senior citizens can park their money:

• Senior citizen savings schemes
  
• Post office term deposits
  
• Fixed deposits for senior citizens
  
• National Savings Certificate
  
• Monthly income mutual funds
  
• Pradhan Mantri Vaaya Vandana Yojana (PMVVY)
  
• Tax-free bonds

They can also invest in Equity Linked Savings Scheme (ELSS), but it carries slightly higher risks than the ones mentioned above.

Conclusion

As you can see, a health insurance plan is a must-have for all senior citizens. It protects them from the skyrocketing medical costs and ensures that they get the best medical treatment during the hour of need. They can also buy a life insurance policy if they have unpaid loans or a spouse to support. Apart from the insurance products, they should also invest in a good savings plan for senior citizens to create a corpus for emergencies.

PNB MetLife offers many life insurance and savings products that can fit your wealth planning and help you meet your financial goals. Browse through and pick a suitable plan for yourself! Know more about term plan, term insurance and life insurance at PNB MetLife.

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