You may not see life insurance as an essential and vital part of a retirement income plan. You may believe that life insurance primarily is a way to protect families from the early loss of an employed person in the working years. Though, with an evolution that has taken place in the life insurance industry. It is no longer only catering to the customer’s protection needs. There are plans which cater to an individualâ€™s retirement, investment and saving needs.
Life insurance plans are good instruments to meet your retirement goals. It can help to protect your income, provide tax-free cash flow, help manage taxes, provide peace of mind to families, and even improve the total returns in a portfolio.
When one spouse passes away during retirement, the existing spouse struggles to meet their income needs. While expenses might be lower, the drop in expenses seldom offsets the fall in income. Therefore for many couples, life insurance can be used to make sure that there is enough money to replace any lost social security or other retirement income. The surviving spouse is able to keep up his or her current standard of living during retirement.
You must ensure to investigate the ways life insurance could fit into your retirement plan. Not everyone’s requirements are alike.
Unit Linked Insurance Plans are market-linked products that combine both insurance and investment. The ULIP plans let you enjoy a life cover as well as provide you an opportunity to earn market linked returns. For those buyers who are nearing retirement and who want to avail the dual benefits investment cum insurance backed up by flexibility, Unit-linked insurance plan are the best investment option for them.
ULIP plans are transparent in nature and offer great features in minimum charges. It offers flexibility to switch over funds. It has different premium paying frequency. It offers rider options for additional coverage and tax benefits.
It’s imperative for both working and non-working spouses to have life insurance. The non-working spouse needs to be insured to cover the cost of childcare and other household management work that the surviving breadwinner will now have to pay for. It provides the basic financial protection to your family if you pass away before you’ve accumulated enough savings for them to live on