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    Should Senior Citizens Buy Insurance?

    Last Updated On 04-03-2022

    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?

     

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    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.

    The income tax is levied on all earning individuals who fall under a taxable income bracket. The income tax is paid to the Government of India and is charged annually. However, there are several tax deductions and exemptions that you can claim to lower your tax liability. The Income Tax Calculator helps you ascertain your tax output for a financial year based on your taxable income. This can help you plan well and save tax using the tax-saving deductions and exemptions, if possible. 

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

    AD-F/2021-22/803

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    Disclaimer

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    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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