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Importance of insurance for the retirement phase of life

Three years ago, Gautam Nanda retired from his job. He and his wife relocated from Mumbai to their ancestral home in a small village. Since Gautam’s pension was not enough, he did a few odd assignments to support himself and his wife. All through his working life, his colleagues had advised him to select a life insurance plan. But Gautam never bought any policy since he thought it was a waste of money. He enjoyed the best of health and vitality. In fact, he often boasted that he had not suffered from a single disease in the past ten years. In this fashion, Gautam completed his tenure at his office and retired. Unfortunately, he died of an unknown illness a few days before his 64th birthday. This left his wife without any income or savings after he passed away.

Nobody knows what the future holds. Mistakes like this can have a huge impact on the family. Hence, it is always better to be prepared.

Benefits of a life insurance for the retirement phase of life


Here is how a life insurance policy can help you secure your family’s future. Look up companies like Future Generali for life insurance after your retirement.

Income replacement

Life insurance is more than saving tax or getting refunds. It is about financially protecting your family. As the breadwinner, your monthly income takes care of your spouse and children. Some people work part-time even after their retirement to supplement their income. And in case your spouse is dependent on this income, it can be devastating if something happens to you. With a life insurance policy, it is possible to protect your family’s future.

Meeting medical expenses

It is said that a person gains wisdom with age. But it is proven that a person’s health deteriorates with age. From bad knees or poor cardiovascular health, there are many complaints. After you retire, medical bills can become a major part of your monthly expenses. So, it is necessary that you have a good insurance plan for this phase of life. For example, a pension or money-back life insurance plan can help you build your post-retirement kitty. This can then help you financially tackle any medical issues that may arise for you or your partner.

Earn money during retirement

Earning money in your retirement through a life insurance plan? Yes. Don’t be surprised. With the advent of Unit-Linked Insurance Plans (ULIPs), investors can now enjoy a regular income in addition to the complete benefits of life insurance. Through ULIPs, you can earn money by investing in a mix of equity and debt. You have multiple options of receiving money once you start investing. This includes a regular income or a lump sum or both. Some companies also include pension boosters in the plan to increase retirement savings. These boosters help investors to increase savings without the need to invest more money.

Why you should start thinking of insurance for retirement today

You can opt for a life insurance plan at any time of your life. But the more you delay, the higher is the premium. In addition, the sum assured offered by the insurance provider could be much lesser. So it is best to choose a comprehensive insurance plan as soon as you start working.

What policy should you choose?

There are many kinds of life insurance schemes available in the market. This includes term insurance, money-back policy, and pension policy. With so many options available, it can be confusing to choose one. The answer to this question depends on your goals after retirement.

A term insurance policy: The best option for securing your family’s future against untoward incidents like death. They are also the cheapest of all life insurance plans.

A money-back policy: The best choice if you wish to earn a lump sum. The money that you get back helps you meet big expenses like home repairs, travel etc.

A pension policy: This is the best way to ensure a fixed income after retirement.

How to plan your post-retirement future?

  • If you have a dependent spouse or children, life insurance must be part of your financial plan.
  • It is great if your employer provides you with life insurance. But it might not be enough. Try to supplement it with a policy that you buy on your own.
  • Make sure that you pay your premiums well in time. Ensure that your insurance policy is not terminated before you reach your retirement.

To sum it up:

A life insurance policy is important for all individuals at every stage of life. But it is especially important after retirement, when income is limited. Buying an insurance policy would definitely secure your future and that of your loved ones.

This is a partnered post by Future Generali Life Insurance.

Updated Date: Mar 06, 2017 14:07 PM

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