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.
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.
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.
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