- Nirmal Kumar Lamichhane
The senior citizen market (people above 60 years of age) is a great opportunity for the life insurance business. Because if the population of this group is increasing day by day, then their life insurance has matured. They have become financially and socially capable by engaging in economic activities for a long time. However, even though their needs are different, their numbers are increasing rapidly.
Below are the key aspects, strategies and policies related to this market.
Why is the senior citizen life insurance market attractive?
Population growth
- Improvements in health care and changes in individual behavior cause the elderly population to grow around the world.
- ‘baby boomers’ (60 to 80 years of age) generation are now entering retirement age and the knowledge of capital and financial planning accumulated with them should be used adequately.
Property planning and succession targets
- Most senior citizens want to leave some financial assets for their children or grandchildren.
- Since life insurance is a tax deductive measure for property transfers, it benefits all classes.
New protection for life insurance vacancy
- Some people have lost their life insurance along with employment after retirement.
- Some want to cover the final expenses (such as funerals) or the remaining loans.
- wants protection for upcoming expenses and medical expenses.
New health technology
- Many insurance companies now sell life insurance through an easy process without medical examination. If it can also include the elderly, it will create a new dimension in the history of life insurance.
Popular insurance products for senior citizens may be as follows:
Kazkiria expenses life insurance
- Small amount insurance (Rs 50,000 to Rs 2 lakh). Which helps cover funeral expenses, small loans or medical bills.
- If the insurance fee is timely, many senior citizens can be insured according to the principle of life insurance.
- Lifetime insurance benefits helps in achieving economic and social security.
- helps to lead a comfortable life in old age by managing property.
Lifetime life insurance
- manages capital and gives insurance benefits with guarantee.
- The person wishing after the death of the insured traditionally helps to get rid of the debt burden by performing the last rites of the insured and if the nominee wishes, can restore the soul of the insured by establishing trusts in the name of the insured.
Term Insurance (Limited Use)
- Most senior citizens have children abroad. In such a situation, the insurance amount helps to meet emergency expenses (e.g. funerals, health loan repayments, etc.).
- After the death of a senior citizen, the family will get a certain amount of money through term life insurance. It provides financial support, especially to their dependents (e.g. spouses, sons and daughters, grandchildren).
- Many senior citizens are still financially responsible for their families. Insurance provides an opportunity to plan for the afterlife.
Hybrid (dual) long-term care + life insurance
- Having a life insurance with benefits that cover long-term care costs (e.g. nursing home or at-home treatment) helps to manage the costs caused by sudden health problems.
- maintains a sense of trust for older people who are concerned about long-term health costs.
Challenges seen in the sale of life insurance to senior citizens
Approval process
- Premiums may be expensive for people with health problems or insurance may not be sold. However, if more and more insurance can be sold by studying the average age of senior citizens, health status, etc., then it can increase the business as well as honor the senior citizen.
end
The senior citizen life insurance market is not only profitable but also service-oriented. To serve this market effectively, product knowledge, customer education and trust building in insurance are essential. Insurance agents and companies help this growing group serve the nation and senior citizens through life insurance with careful and appropriate solutions.
Lamichhane is the head of the Claims and Law Department of Reliable Nepal Life Insurance. )
