Life insurance is an important investment decision, even for people over 60 years, as it gives an assurance of financial security. Various life insurance plans are available to help senior citizens meet their financial goals. In India, there are different types of life insurance plans to help seniors avoid financial stress. All these plans for senior citizens in India normally fall under two major categories – Whole Life Insurance Plan and Term Life Insurance Plan. 

Features

Term Life Insurance Plan

Whole Life Insurance

Tenure

Specific period of time

Comprehensive insurance plan for policyholder’s entire life with no fixed policy period

Death benefits

Paid out in the event of death during the policy tenure

On the death of the policyholder, the insurance amount is transferred to the designated nominees/ beneficiaries

Additional features

Pure protection plans with no additional benefits

Savings features in addition to insurance coverage

 

Additional features like tax redemptions, cash value growth, permanent protection, continual premium payments over policy period etc.

Pricing

Affordable

Expensive than term insurance plans

Flexibility

Flexible with respect to tenure, the sum assured and frequency of payment

Less flexible but with more attractive options

A 60-year-old senior citizen can consider one of the above two plan types for meeting his/her financial goals and providing adequate coverage during their old age.

Points to Note: 

Life insurance is important even for 60-year-old.

Depending upon their financial needs, they can choose either a term life insurance plan or a whole life insurance plan.