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

By Balachander Sekhar,

Turning 50 can be a turning point in our lives. While some people look at 50 years as living half a century of their lives, some look at it with greater spirits, to achieve the next leap of life’s growth. Thus, 50 is the age point that comes with new opportunities and has its own share of challenges. 

It can be the age where one can be at the peak of his/her career, earning maximum income. It can also be the stage where the person has the maximum amount of expenses in terms of health, children’s education, career, future, marriage, aging parents, and many more responsibilities. While it is always advisable to protect oneself with insurance from an early age; during the 50s the importance of having multiple insurance policies might increase manifold. Thus, if an individual has never insured oneself till his/her 50s, below can be the options to start with. 

Term insurance - For buying a term plan in the 50s, one might have to pay double the premium, compared to a 40-year-old. However, it is advisable to go for a term plan in the 50s, especially if the individual is the only earning member in the family. A term plan in the 50s can provide equal financial support to the family members who are financially dependent on the policyholder, in case anything unfortunate happens. The spouse can avail death benefits, it might also help to pay off any loans or liabilities that are outstanding. Liabilities related to children’s requirements like higher education, marriage, medical needs and even lifestyle requirements can be taken care of by term insurance plans, in case of the demise of the insured. The policy also comes with several tax benefits. Thus, it is a highly recommended insurance for the ones who never got themselves insured till the 50s. 

Retirement pension plan - Annuity plans or commonly known as pension plans can be a good option for consumers in their 50s. It requires policyholders to pay a lump sum or pay regular premiums to the insurance company. After retirement or deferment period, the policyholder will receive steady income or may withdraw a part of the corpus. Thus, after retirement, the policyholder can still leverage the sense of drawing a monthly salary and can secure a brighter future after retirement. Many of the policies also offer tax deductions under Section 80CC, the premiums paid and claims filed are eligible for tax deductions. Along with this, some retirement pension plans also offer death benefits. 

Critical Health Insurance - With growing age, there is an increase in health problems too. Due to the sedentary lifestyle and increased lifestyle disorders, it is suggested that people should opt for critical health insurance during their fifties. Post-50s, people are more prone to contracting life-endangering illnesses. Cancer, heart attack, organ transplant, stroke, kidney issues and dialysis, coma, permanent paralysis of organs, liver disease, and many other life-threatening diseases are covered under it. 

The best part of taking this insurance is the policyholder need not get hospitalised to obtain the insurance claim. The insurer would pay a lump sum amount if the serious disease is included in the medical examination policy is confirmed. There is also no need for deposit receipts for this kind of claim. 

Buying insurance in the 50s is immensely different from buying insurance in the 20s, 30s, and even 40s. Any insurance that one purchases has to be self-calculated and balanced so that the risks and rewards are managed properly. It is important to determine goals and requirements too for the coming years. While there are many other insurance policies that one can look at investing in their 50s, term insurance, whole life insurance, and critical health insurance can be highly beneficial for consumers. 

(The author is the CEO of RenewBuy)