There can be multiple perspectives of looking at the term Retirement where on one hand one might say that it is the age after which you officially put an end to your occupation and your earnings too while on the other hand, it can be seen as the start of a new phase of life with new experience and when you are probable to get a lot of time to devote to the things which you were not able to enjoy earlier in your life.
The former definition sounds a bit pessimistic while the latter one gives a ton of optimism where you get a lot of time to enjoy your life freely. Well, nothing comes on this earth without a price tag and your retirement is as much real as anything else on this earth, thus, a nice retirement also has its own price tag. If you want to have a nice and worry free post retirement life, then you’ve got to plan and work for it during your pre-retirement period.
One of the major step that you should take to move in this direction is start by buying a life insurance, your source of income for your old age. Even though, selecting the right Life insurance policy for you might require some research and effort but it is not a rocket science at all. Lucky enough, today we are going to discuss exactly about how a life insurance plan can make your retired life nice, covering everything from the basic to the popular insurance plans available in the market from the companies like Max life insurance and Kotak life insurance along the way. So, let’s get straight into it.
What is Life Insurance?
In Simple words, Life insurance is an agreement between the insurer and the customer where the customer has to pay regular premium for a pre specified period in return of which the customer gets the money back when after maturity either as lump sum amount or regularly in small installments.
It will not be vague to assume that a majority of Indian population understands the significance and need of a life insurance but not that many of us really buy a life insurance. life insurance is not a luxury that is to be enjoyed by a few who can afford it but it is a necessity which provides a way to insure your several future financial needs and a way to lead a life free of worries regarding your future especially when your retirement is not too far.
Benefits of Life Insurance
A life insurance policy can help an individual in a lot different ways but since, we are talking in relevance to the retirement particularly right now, let us focus on the benefits that a life insurance policy can provide in the retirement. So, here they are listed below:
Replacement for the Lost Income
One of the major setback of retirement is that your regular flow of income stops but your expenses don’t and therefore, without a life insurance, it is quite likely that you become a liability on your family which is usually not a great thing to enjoy. If you want to stay away from that fortune, then you can buy an annuity from max life insurance or some other insurance company for a regular income even after retirement.
Legacy for the Family
Being financially independent is one thing and being capable of leaving a legacy behind for your family is another thing. A lot of elderly retired personnel dreams of being capable to do so. Endowment plans enables you to leave something for your family behind. Popular examples include Max life future secure II from max life insurance and Kotak classic endowment plan.
Cover the Funeral Expenses
Funeral expenses can get really high and become a burden on the left behinds. One should not underestimate or overlook the funeral expenses. A lot of life insurance plans provides for the funeral expenses thereby reducing the burden on the shoulders of the family.
Pay off the Debts
It is quite likely that you get a lump sum retirement money when you retire from your service. A popular purpose that this lump sum money serves for a lot of people is that it is used to pay off large debts and to ensure that this money is used only for this purpose, one should get their life insured, so that their regular expenses can be covered by the insurance returns.
Types of Life Insurance
In the previous section, we used terms like endowment plans and annuity plans, a lot of you might be thinking what do they mean. Well, they are just the types of life insurance. brief description about them and others is given below:
Endowment plans provides the benefits to the beneficiary, if something unforeseen occurs to the policy holders during the tenure while, after the maturity period is over, the policy holder can himself receive the lump sum amount. Max life insurance’s life perfect partner super and Exide Life mera ashirwad are popular examples.
Since, we are talking about relevance of life insurance for retiring people, then annuity plans are of most relevance in this context. These plans provide the reimbursement in the form of regular small installments which can act as the source of income post retirement or one may take it as a pension plan.
Term insurance is basically for young people as the coverage period for it is limited and there is no benefit provided once that period is over. There are plans that provide the option to convert a term insurance into a whole life insurance but that too if done before a particular period from purchase date of the policy. for the young readers out there, max life insurance term plan is among the popular term insurance plans.
Whole Life Insurance
This plan is in contrast to the term insurance where the coverage period of the policy is for the complete life of the insured.
In the end, we hope that we helped you in structuring out your plan for a retirement life full of comfort and void of worries with a life insurance and above all, we hope that we made you realize that a life insurance is a necessity that serves a lot of crucial purpose in one’s life.