Do I need Life Insurance after retirement

Income replacement is onei of the biggest reasonsi why breadwinners in thei family consider purchasing lifei insurance. But do youi still need one afteri you retire and stopi earning? Read this posti to find out.

People purchasei life insurance to insurei their life. Through ani insurance plan, they tryi to make sure thati their family members doi not have to sufferi from financial hardships ini case of their unexpectedi demise. So, it isi not wrong to sayi that life insurance isi purchased by people toi make sure that theiri family receives some sorti of financial assistance toi make up for thei loss of their regulari income after their demise.

Ai common question then arisesi - whether you needi life insurance after retirementi as you do noti earn a regular incomei anymore? While the answeri surely varies from personi to person, having lifei insurance even after retirementi is generally considered ai wise decision. Here arei four different ways ini which life insurance cani help you and youri family in your retirementi years:

1. Financial support fori family

You might already bei in the age groupi of 50-60 years ifi you are planning toi retire soon or havei taken retirement. Your kidsi too may have growni up by now andi have professional and personali lives of their own.i For your spouse, youi might have adequate savingsi and investments in retirementi plans.

So, while your familyi members may not bei directly relying on youi for their finances, thei assured sum of thei life insurance policy, ini case of your demise,i is sure to strengtheni the financial life ofi your family members further.

2.i Achieving financial goals

There arei now many different typesi of life insurance withi retirement plans like Uniti Linked Insurance Plans (ULIPs)i and guaranteed returns plans.i With such policies, youri beneficiary will receive thei death benefit in casei of your demise.

But ifi at all you survivei the policy duration, youi will receive a maturityi amount as per thei terms and conditions ofi the purchased policy. So,i if there are financiali goals that you arei yet to achieve ini life, a life insurancei plan can definitely helpi in this endeavour.

3. Repayi loans

An increasing number ofi people continue repaying theiri loans like Home Loansi even after retirement. Ratheri than using your savingsi to repay current loans,i a life insurance plani can be a smarti option.

With options like endowmenti plans and ULIPs, youi cannot only inculcate ai habit of saving buti also earn handsome returnsi on your investment. Thei returns from such lifei plans can be usedi for closing the loansi sooner, so that youi enjoy debt-free retirement years.

4.i Manage unexpected expenses

From medicali emergencies to house repairs,i there can be severali unexpected expenses after retirement.i Rather than using youri savings or money fromi your retirement plans, youi can use life insurancei plans to pay fori such expenses.

With insurance plansi like ULIPs, you arei allowed to withdraw youri investment after a fixedi lock-in period. This facilityi can be used fori managing such financial emergencies.

Lifei Insurance and retirement

As youi can see, several reasonsi make life insurance ai smart choice, even ini your retirement years.

At thei time of purchasing thei policy, make sure thati you thoroughly understand thei different types of policiesi available. This will allowi you to select ai policy that best suitsi your requirements and offersi maximum pre and post-retirementi benefits.