Never insured until your 50s, what are your options?

By Balachander Sekhar,

Turning 50 can be a turning point in our life. While some people consider 50 years to be half a century of their life, others see it as a bigger mind, to achieve the next growth leap in life. So, 50 is the age that offers new opportunities and comes with its share of challenges.

This can be the age when you can be at the peak of your career and earn maximum income. It can also be the stage where the person has the most expenses in terms of health, children’s education, career, future, marriage, aging parents and many other responsibilities. While it is always advisable to protect yourself with insurance from an early age; During the 1950s, the importance of having multiple insurance policies could increase dramatically. So, if a person has never insured until their 50s, below are the options to start with.

Term insurance – To buy a term plan in the 1950s, you may have to pay double the premium, compared to a 40-year-old. However, it is advisable to go for a term plan in the 1950s, especially if the individual is the only earning member of the family. A term plan in the 1950s can provide equal financial support to family members who are financially dependent on the policyholder, in case something unfortunate happens. The spouse may receive death benefits, this can also help pay off outstanding loans or debts. Responsibilities related to children’s needs such as higher education, marriage, medical needs and even lifestyle requirements can be taken care of by term insurance plans, in the event of the death of the insured. The policy also comes with several tax advantages. It is therefore highly recommended insurance for those who were never insured before the 1950s.

Pension plan – Annuity plans or commonly known as retirement plans can be a good option for consumers in their fifties. It forces policyholders to pay a lump sum or pay regular premiums to the insurance company. After retirement or the postponement period, the insured will receive a regular income or may withdraw part of the corpus. Thus, after retirement, the policyholder can still benefit from the feeling of having a monthly salary and can secure a better future after retirement. Many policies also offer tax deductions under section 80CC, premiums paid and claims filed are eligible for tax deductions. Along with this, some pension plans also offer death benefits.

Critical illness insurance – With age, there is also an increase in health problems. Due to the sedentary lifestyle and the increase in lifestyle disorders, people are suggested to opt for critical illness insurance during their 50s. After their 50s, people are more prone to contracting life-threatening diseases. Cancer, heart attacks, organ transplants, stroke, kidney problems and dialysis, coma, permanent organ paralysis, liver disease and many other life-threatening illnesses are covered.

The best part about this insurance is that the policyholder does not need to be hospitalized to get the insurance claim. The insurer would pay a lump sum if critical illness is included in the medical examination policy is confirmed. There is also no need for deposit receipts for this type of claim.

Purchasing insurance in the 1950s is vastly different from purchasing insurance in the 20s, 30s, and even 40s. Any insurance purchased must be self-calculated and balanced so that the risks and rewards are managed properly. It is also important to determine the goals and requirements for the coming years. While there are many other insurance policies that one can consider investing in in their 50s, term insurance, whole life insurance, and critical illness insurance can be of great benefit to consumers.

(The author is the CEO of RenewBuy)

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