Bajaj Allianz Life Insurance:Increasing life expectancy and expensive healthcare have made planning very important to meet financial needs after retirement. In the area of ​​retirement planninglife insurance Acts as a versatile financial instrument that provides a series of solutions. Why you should make life insurance a part of your retirement planning strategyHere5 major Reasons have been given.
Securing post-retirement income
You may not have a primary source of income after retirement. however,A life insurance policy that provides income benefit can effectively replace your income. Many life insurance plans like endowment policies and even Unit Linked Insurance Plans (ULIPs) give you the freedom to receive your maturity payment in the form of regular income payments instead of a lump sum payment. Other than this,Annuity plans also provide regular pension payments that can add to your post-retirement income.
Coverage for medical expenses
As you age, your risk of developing certain serious health conditions such as cancer, stroke or heart disease may increase. These serious diseases often require expensive treatments, surgeries and long-term care, which can be very burdensome financially. Life insurance plans with a critical illness rider provide coverage specifically for such conditions, at an additional payment of a nominal premium. This way it is ensured that you get the best possible treatment without spending out of pocket. This protection allows you to focus on recovery rather than worrying about the financial impact of your illness.
paying off any remaining debt
If you apply for credit facilities like home loan in the latter part of your career,So some of these debts may persist even in your post-retirement life. However, you can always continue to repay the loan from your post-retirement income,But closing the loans may also be a good idea. Maturity benefits from life insurance policies can help you pay off loans that you do not want to repay for a long time.
Protection from rising expenses
Rising expenses can reduce your purchasing power over time. To create an inflation fighting retirement corpus,You need to do more than just save,You need to invest and increase your capital. Life insurance plans like Unit Linked Insurance Policies (ULIPs) provide the opportunity to invest in a wide range of market linked ULIPs. If the market moves favourably,So these investments can grow manifold,Due to which your life after retirement can become comfortable.
Ensuring liquidity of your assets
You may have other properties in your name as part of your retirement corpus and your total wealth. land in these,May include home properties and other real estate. Liquidating these assets can be time consuming. but on the other hand,Payments from life insurance plans are highly liquid and can be tax efficient.
For these key reasons, life insurance can be an important element in financially securing your post-retirement life. If you haven’t done so yet, consider including life insurance in your retirement planning strategy, it’s a good start to planning your financial independence for the future.
(Article by Sameer Joshi, Chief Agency Officer, Bajaj Allianz Life)