INSURANCE- SHOULD SENIOR CITIZENS PURCHASE IT?

When it comes to financial planning, you might have invested in insurance and mutual funds to secure your finances. And if you have planned everything right, you are likely to end up with some money after retirement too. This begs the question - what should you do with this money? Should you invest it somewhere? Should you purchase an insurance plan?

Let’s understand some options.

Health insurance and critical illness insurance

Health insurance is a necessity. It helps you with your medical expenses when you fall ill. With age, you tend to become more susceptible to medical issues. A health insurance plan can financially cushion you when you fall sick.

You can also consider purchasing critical illness insurance to act as an accessory to your health insurance. The plan will provide extended cover for diseases that are not covered under health insurance. It can give a lump-sum pay-out in case if you fall ill. This can help you with your medical treatment. It can also help your family meet other expenses and responsibilities.

Life insurance policy

It is never too late to invest in a life insurance plan. It can help take care of your family in your absence. Here is why you should consider purchasing a life insurance plan-

You have outstanding debts

A person takes many loans in his or her lifetime to meet both long-term and short-term goals (like buying a house or a car or financing the education and marriage of their children). Therefore, if you have similar goals in your life, you can purchase a life insurance plan to protect your dependents from the financial stress of any outstanding debts in case of your untimely demise. After your death, a life insurance policy for senior citizens will pay out a death benefit, which can help them meet their expenses.

You have dependents

If you have people dependent on you, then consider purchasing a life insurance policy for senior citizens. If your partner is a homemaker, or if you have very senior adults to take care of, you will need insurance.

When looking out for plans, remember to analyse your goals and the financial resources needed to meet them. The best insurance option for a senior citizen will be one that does not cause any financial stress on retirement savings. Also, remember to carefully go through all terms and conditions for any financial product or service that you purchase.