Between 2021 and 2022, Indian ownership of term insurance plans increased from 39% to 43% 1.
Undoubtedly, the COVID-19 pandemic has made us realize the importance of having a term life insurance plan!
It’s a type of plan that provides pay-out to your nominee(s) in the case of your unfortunate demise. This pay-out will not only protect your loved ones from a sudden loss of income but also help paying back the unpaid loans such as home loans, student loans, etc.
Even though it’s smart to buy term insurance early, you still have time! So, yes! It is worth buying term insurance in your 50s. Here’s why:
5 Benefits of Buying Term Insurance in Your 50s
Here are the five most important benefits of buying term insurance in your 50s:
1. Replace Lost Income and Pay Living Expenses
Irrespective of your age when you die, a term plan can help your dependents make up for the lost source of income, especially if you were the sole breadwinner. The pay-out received can help them pay their living expenses.
2. Meet Your Family’s Lifestyle Needs
Over time, our lifestyle requirements change. Alongside, inflation keeps rising and that brings down our purchasing power. The pay-out that your nominees get from term insurance can financially aid them to maintain their lifestyle.
3. Protection against Liabilities
You may have taken out loans to buy a house, a car, and other assets. You can rest assured that even if you pass away, the burden from these loans won’t put your family in financial danger. If something tragic happens, the payment from the term plan might be able to pay off the loan(s). Moreover, his gives them peace of mind to focus on their own needs.
4. Financial Security for Children
Your kids are growing and so are their costs to have a stable livelihood. The maturity benefit of term insurance can also help financially secure the future of your children, at least until they start earning themselves.
5. Tax Benefits
Taxpayers may claim specific tax benefits in accordance with the guidelines set in the Income Tax Act. The most often claimed tax benefits fall under Section 80C and Section 10(10D). Please note that the tax norms are subject to change.
To conclude, you can enjoy the above benefits irrespective of the age at which you opt for term insurance. So, compare and buy the best term life insurance plan most suited for your and your family’s future financial security.
Tax Disclaimer: Tax benefits are defined by the Income Tax Act of 1961 and are subject to any future changes. It is suggested that you consult with a tax consultant.