Should women in their 50s consider whole life insurance?

The financial challenges for women are slightly different from those of men. They may face career breaks or other sorts of circumstances. However, with efficient planning and proper execution, you can secure your financial future for yourself and your family, despite challenging circumstances. A whole life insurance investment is regarded as a wise choice.

What is whole life insurance?

The very name whole life insurance suggests that it is an exclusive plan offering both insurance coverage and financial security throughout your life as per the chosen plan terms. This sort of insurance plan usually offers life coverage protection for up to 99 years for you.

This acts as a protective shield for your entire family, especially during challenging circumstances. It competently protects the financial interests of your family despite your absence. The plan remains active from the purchase date till 99 year of age of the policyholder concerned.

If anything happens to the plan holder during this term, the designated beneficiary receives the death benefit, provided the insured-cum-policyholder keeps clearing the premium dues punctually throughout the tenure.

It automatically gets discontinued once the policyholder reaches 99 years of age.

Why might women in their 50s consider it?

Family becomes the primary priority of every family person when it comes to finances, health and overall maintenance of living standards. This becomes all the more important when you are nearing your old age and retirement. This is valid both for men and women.

You can purchase a whole life policy to ensure the financial protection of yourself and your family members, despite unfavourable circumstances, in a relatively cost-effective manner.

Any life insurance for a 50-year-old ensures a secure, hassle-free financial future. It can pay off your outstanding debts, ensure a secure retirement. Moreover, life insurance offers tax benefits u/s 80C and 10(10D) of the IT Act, 1961.

Moreover, this is a loan against insurance policy, which means you can undertake a loan against this sort of plan.

How to choose the right policy?

Since the market is loaded with so many life insurance products, it becomes a pretty tough challenge to choose the right policy. However, if you keep certain crucial factors in mind, this choice becomes much easier. The important factors that you need to consider in this respect include:

1. Rider benefits: You can enhance the overall coverage extent of your basic plan by adding suitable riders to it in exchange for additional premiums for every rider chosen. Some of the popular riders include an accidental disability add-on, a critical illness rider, an income rider, an accidental death rider, etc. However, you must select only the most suitable ones, considering your requirements, otherwise, it will eventually lead to unnecessary financial drainage.
2. Health analysis: Elderly people become more vulnerable to various health issues. Different plans allow varying health issue coverage protection. However, not all plans cover all sorts of health ailments. Stick to plans that cover health issues that you think you might develop, considering the current tendencies and your hereditary history. Moreover, certain insurers require you to undergo health check-ups and decide the coverage based on the results. Ensure that your chosen policy covers all the potential health risks relevant to you.
3. Tenure: While purchasing a life plan in your 50s, the insurance tenure will automatically shorten. So, ensure that you choose the most befitting one. Some companies even allow policy extensions, so that you can continue paying premiums despite the exhaustion of your existing tenure and enjoy suitable coverage.
4. Premium variant: Usually, individuals purchase whole life insurance in their 50s or their independent children purchase it on their behalf. So, experiencing low income is popular. Therefore, the insurance companies ensure that you clear the premium dues through lowered premium rates, reducing the overall premium burden. You can pay the premiums either monthly, quarterly, half-yearly, or annually, based on your preference and convenience.

Conclusion

The previous-day financial conservatism practically does not exist, especially for urban women of contemporary India. To ensure complete financial independence and secure a future till the end, the importance of whole life insurance is unparalleled.