Retirement comes with its own set of pros and cons. The thing that worries people the most is not having a steady income and being dependant on someone. If you are concerned about any the scenarios mentioned below, you do have reason enough to continue with your life insurance policy.
To build a retirement corpus
You may be concerned that your retirement corpus may not be able to support you in case you live a little longer. Invest in an retirement plan that gives you guaranteed returns upfront. So if you have crossed 50, invest a stipulated amount every year that will enhance your retirement corpus
Loan facility for financial support
You never know what financial emergency you may face in the future. In such a scenario, you may find it difficult to receive loans considering that you are not earning. Retirement and pension plan gives you the option of availing loans against the policy, subject to certain terms and conditions. This can be helpful to you in financial emergencies.
To take care of medical expenses in old age
Your medical expenses are bound to increase as your age advances. Considering your seniority in age, you may not be eligible to avail critical care or medi-claim policies. In such a scenario, if you have an endowment plan going well, you can surrender it and be helped with some lump sum funds.
Premiums paid for and pay-outs received from endowment plans are eligible for tax exemption under section 80C and 10D respectively of the Income Tax Act, 1961. You can save some amount of taxes by investing in endowment plans.
To pay off mortgages
If you have a home loan going, you will do well to have some security up your sleeve. You don’t want your spouse and kids to be burdened with paying the EMI’s on the home loan when you are no longer around. An endowment policy can ensure that your spouse will have some funds at her disposal to pay off the home loans and live in the same house with her head held high, even when you are not around.
Support for your spouse
Even after retiring, you can make some income by being engaged in a ‘part-time job’ like a consultancy. Gone are those days when retirement meant complete withdrawal from occupational activities. Many people work in their ‘retirement’ and do bring home an income, which would need to be replaced in case anything unfortunate happens to them. A life insurance policy will ensure that your spouse is indemnified or provided for when that income source is no more available.
Think about it. There’s no point closing the stable door after the horse has bolted. Make necessary provisions to protect yourself adequately even when you are retired.