Wednesday, August 4, 2021

Can Life Insurance Serve as a Steady Source of Post-Retirement Income?

The life expectancy figures in India have risen over the last decade. As per Statista, life expectancy in India has increased from 67-68 years in 2015 to 69-70 years in 2020. This implies that the post-retirement life span has also increased. This has a direct influence on the financial preparedness for retirement. While many of you might rely on your accumulated savings to get you through the non-working years of your life, the truth is, the annual rise in inflation (nearly 5-6%) combined with the longer life span and mounting medical expenses can all be an expensive outcome.

To ensure a financially secure retirement, your basic need is to have a regular source of income in your post-retirement life. You should plan and invest in wise investment options like life insurance that offer you dual advantages of a life cover, along with guaranteed post-retirement income. With a regular source of post-retirement income, you will be better equipped to maintain your standard of living, combat the impact of inflation, and meet your and your family’s medical expenses in the future.

How does life insurance help?

Specific life insurance plans known as retirement plans are designed to provide you with financial stability during the non-working years of your life. These plans offer the double benefit of life insurance and investment. You pay regular premiums when you are working and enjoy tax exemptions on the premiums paid. The money is invested in the market, and it accrues over the policy tenure. At the vesting age, when you decide to receive the payouts, you can choose to take regular income withdrawals as per your preference. You also get life insurance cover throughout the policy term like a term insurance.

Some benefits of the Retirement Insurance Plans

With effective retirement planning and the right income options, you can easily secure the most important phase of your life, spanning decades. There is no margin for error here, so make the right choice and at the right time.

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