Benefits of Retirement Insurance

Life is not same in all phases of life. After so many years of working, busy and active phase of life what a person wants is a smooth, relaxing and comfortable life. All this is possible is when you have saved a lump sum amount during your active years. Another best way is to take retirement insurance it helps you in providing a regular sum of money every month after a pre defined date.
Insurance is a way to protect you and your family from any sort of risk in the same way retirement insurance is insurance to protect you and your family after your retirement. Retirement insurance helps a person as old age life as beautiful as it was earlier by providing him the means to live his life when he is not working.

The retirement insurances assure you that you will receive a regular payment of a pre fixed amount after your retirement.

Benefits of Retirement Insurance

Risk management – Main and the foremost aim of insurance is to financially support your family if something misshapen like death of insurer. The family of insured person will receive amount for which person was insured. This gives financial protection to the family of insured person.

Independent life –
Retirement insurance provides you a happy and independent life after your retirement. If you are a business man and don’t receive any pension after your retirement, retirement insurance is the best way to protect your future. With the help of retirement insurance you don’t have to beg in front of anyone during your old age. As earlier people use to be dependent on their children at their old age this insurance is the best way of leading an independent life. You regularly save money in retirement insurance and that money is invested by Insurance companies which give growth to your money. When you decide to retire insurance company pays your money back on monthly bases. Which assure you to live your life as you was living prior to retirement without financial worry.

Tax deduction – Another benefit of having retirement insurance is that you can avail tax deduction. In many countries the amount of premium paid every year for retirement insurance is exempted from tax calculations.

A person should start planning his retirement as soon as possible the earlier he starts the larger the more benefits he will get at the time of retirement. There are various retirement plans offered by insurance companies all have their own benefits.

Everyone needs a retirement plan because you are retiring from work not from life. You still have needs and demands and you need money to fulfill them. Most of the people imagine that, taking a retirement plan from insurance company is only about retirement planning, but its not true you need to consider many more thing when you plan for retirement taking a retirement policy is not the completion of task. You need to keep a watch on funds presentation and must make the changes from time to time with a vision to get more returns in the future. Taking a policy is just a beginning stage, and will give magnificent results if you start at an in the early age of your life. If you are still having some doubt that should you or shouldn’t you take the retirement insurance.

Why you should have Retirement Insurance

Inflation: Inflation is an important thing to consider. Inflation decreases the value of your money on yearly basis, i.e. the value of $100 fifteen years ago was much higher than the value of $100 in today’s world. You need to consider inflation in your economy while investing in retirement insurance.

Medical emergencies: With time everyone grows older and your body needs medical aid. But in today’s inflation oriented economy medical expenses are touching the sky. A medical emergency is an important point to consider before taking retirement insurance. So that you don’t disturbs your other assets at the time of any medical emergency.

Changing communal Structure: Today everyone wants to live independent life hence every people need to develop a minimum corpus so that can last easily after their retirement without any help from the family.

Increasing Life expectancy: Life expectancy has increased for both males and females in last few decade. There are various medical advancements that had increased the life expectancy. Thus, now a person lives more years after his retirement. So you must design your retirement insurance in a way so that you have constant income flow till the time you are alive.

No government sponsored pension plan: In many countries government do not provide any financial security after retirement thus you have to take care about retirement on your own. If you want to live retirement life without any financial worry you must do retirement planning in your young age. Every self employed individual have to take care of their retirement on their own so it is necessary to take great care of the life after retirement. So, start thinking of your retirement from today.

Taking retirement insurance is a necessary step to protect your life in your old age. Consider all the points given above if you have any confusion regarding whether you should or shouldn’t have retirement insurance.

Share on:


TradingView is the top stock charting software available for FREE.

Get Now


Top Stock Broker in India. Open Free Demat and Trading Account.

Get Now
Scroll to Top