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Reasons Why You Need Life Insurance In Retirement

  8/18/16 9:20 AM

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You are about to retire in a couple of years. You have made enough money in your working life to have generated enough funds to last you for a lifetime. You are so well off that even if you take off for a vacation in an exotic location every 6 months with your spouse, you’ll still be able to live comfortably. If this is the situation that you are, you probably don’t need life insurance any more. However, not every one is so lucky. If you are concerned about any of the 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. You don’t want to commit suicide just because you do not have enough funds at your disposal, do you? Invest in an endowment plan like Edelweiss Tokio Life Wealth Builder that gives you guaranteed returns upfront. So if you have crossed 50, invest an 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. Edelweiss Tokio Life Wealth Builder 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 mediclaim 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.

Tax savings

Premiums paid for and payouts received from endowment plans like Edelweiss Tokio Life Wealth Builder 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 if you are retired, you may still earn 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.

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