The most common age band where people tend to go for term insurance plans is from their early thirties to the early forties. That’s because when buying a term plan in the younger days, the premium for the same sum assured is significantly lower than that at an older age. Moreover, term plans are one of the finest long-term investment plans and hence, most people at that point in time choose to purchase them for the flexibility, affordability and tax saving benefits that term plans offer.
However, as you grow older, even in spite of the increased premium, buying a term insurance plan might still make a lot of sense for you. That’s because the premium for term insurance even then is lower than that for other types of insurance. Moreover, term plans might actually be the best fit with your life situations and financial goals at best.
Here are some scenarios where buying a term insurance plan even in the fifties is a wise call –
1. You Have Dependents
As you approach your 50’s and move towards your retirement, meeting life’s goals such as the expenditure for your children’s marriages or their higher education can consume a significant amount of your savings.
This age can also be one that marks an increased incidence of diseases for you and your spouse and those health-related problems that can demand significant medical expenses that were not required earlier.
In such a life situation, buying a term plan can help you secure the future of your dependents without further straining on your life’s savings. It can give you the mental peace and security that you’re leaving behind sufficient money for your dependents, without placing a burden on your present finances.
2. You Desire Your Spouse to Be Self-sufficient
You could also fall into the situation where your children are just settled, and you and your spouse now live alone. You see your retired life only a few months or years away and desire to be totally self-sufficient. You also deeply wish to ensure the same kind of self-sufficiency for your spouse when you’re no longer there.
In such a situation while you move closer to a phase where you’ll be living off your life’s savings, a term plan can be one of the best ways to financially secure your spouse in your absence.
The fairly reasonable premium payments against the large cover are affordable, and completely manageable even if your income inflow stops.
3. You are in A Financially Weak Situation
Not everyone has the financial freedom to lock in large sums of investment money for the future. So, in case you happen to be struggling with a limited source of income that makes it tough for you to even make ends meet, investing would obviously seem like a distant luxury.
If that does describe your situation in spite of your present finances, it’s completely understandable if you still deeply desire to leave behind something for your loved ones. It’s a thought that most have as they move towards their retirement age even though they’ve struggled all throughout their working years.
Term insurance can be a particularly helpful way in this situation to secure money for your family without exceedingly burdening premium costs. The reasonable premium charges offered by insurers like Max Life Insurance make them much more affordable and easier to pay for than other savings or life insurance plans.
4. You Still Have Liabilities to Meet
If you have liabilities to meet in terms of large loans for business, home or cars etc., you’re bound to feel the liquidity crunch to invest in traditional insurance plans or other types of attractive investments to grow your wealth.
It’s also something that might bother you, that if you die before you’re able to meet your financial obligations; your family will really suffer in the vicious stream of harassment by creditors.
In that case, with the limited flexibility to invest at the moment, term plans can make a lot of sense for you to cover the risk of your death before you’re able to pay off your liabilities.
If you fall under any of these situations or circumstances as described above, you shouldn’t hesitate to make one small decision that can really bail out your loved ones from financial difficulties. Think about it, after working so hard all your life, would you want your family to suffer because of that one decision you failed to make at the right hour?
Also read: 5 Tips To Manage Your Salary in A Smart Way