Retirement is one of the critical phases of life. Once we enter it, we have several things to think of. Income replacement holds the top position. While working and before retirement, there is a regular source of income, and each requirement is fulfilled easily. What happens after retirement? If anyone has not made any plans for saving then it can become quite troublesome later on. Life insurance after retirement can help you come out of it.
Try to plan things when you are young. Take the life insurance plans which can give you benefits after retirement. There are several other types of insurance as well, like health insurance, auto insurance, and many more but they cannot give you financial security. Life insurance and mostly the term insurance plan works best.
The term life insurance after retirement will give a regular source of income which is not possible after you retire. This secures you and your family. In the worst-case scenario if the policyholder dies accidentally, even then there is a huge benefit to the beneficiary.
For whom is the life insurance after retirement?
If we want to give a straight answer to this question then it is the beneficiary who is going to truly get the maximum benefits.
Any life insurance is purchased for the one prime reason and that is financial security. The loss or death of a breadwinner is an inevitable thing and if you are under financial loss then the grief increases.
When a person takes a life insurance plan, the first thing he or she does is to define the name of the beneficiary or nominee. This helps in determining who shall get the maturity amount.
Life insurance is to overcome the loss of income. If you retire and you can pay your bills and meet all your day to day requirements then you don’t need life insurance after retirement. In the same manner, if you retire and have debts like home loans, car loans, etc. Some even have their children’s dependency, then life insurance is a must for you after retirement.
How life insurance is important?
When you are young, you have several responsibilities. The family is dependent on you. You work hard to meet their needs. Loans are also a part of requirements in life. Death is never known to anyone. If you plan with life insurance plans, your retirement will become easy like a piece of cake.
The chief and sole motive of any life insurance after retirement are to safeguard your family with any financial losses. The policies are of various kinds like the term insurance plan, the whole life insurance plan, permanent life insurance plan, and more. Going with the term plan is always beneficial. It is cost-effective with maximum benefits.
Why do you need life insurance after retirement?
Some common question and answers to it which will help you clarify the need for life insurance after retirement.
#1: Do you have any second income?
One of the most important questions to answer by yourself is that apart from your regular income, do you have any second source of income that can fulfill your need after retirement? Once you start estimating you come to know about your income and your expenses as well. At least a rough estimate is in front of you about the forthcoming expenses.
If you calculate well in advance and see that your second income will suffice the needs of the future, then there is no need for the life insurance after retirement, but when you know it is insufficient, go for a suitable plan.
#2: Are you still having debts?
It is commonly seen that the people who retire at the age of 60 do not have many debts with them and even if they have it is a very small amount. But it is not always the case. In some cases, it is seen that many fail to clear their debts before retirement. Some have their home loan pending and others have their child’s marriage pending and many more.
If you have debts still going on with you even after retirement then life insurance is a must for you.
#3: Are your children and spouse earning and independent?
The chief dependents of your family are your children and spouse. You need to be clear that your child or children are self-sufficient and your spouse also earns enough to fulfill the needs after retirement.
If they are completely dependent upon you then life insurance after retirement is necessary.
#4: Are you having a huge estate?
The estate tax is something that everyone has to pay. The bigger it is, the higher is the amount and it also depends and varies from state to state.
If you own a huge estate and after your demise, your family is unable to pay the taxes, then you are in utter need of life insurance after retirement. These look less important to us, but factually, these amounts have to be calculated well in advance to be on the safer side always.
#5: Are you a business owner or you have a business partner?
There are several businessmen in the world and they have made huge savings and investments in their lifetime. What if there is a sudden demise of the business owner and he or she has a business partner as well. The investments have many terms and conditions.
If your family and you have saved that much to meet such unforeseen situations to clear the debts of investment and others then life insurance is of no need.
On the other hand, if the amount is not sufficient, life insurance is the need of the hour then.
Life insurance after retirement is necessary or not is a subject of calculation based on your priorities and concerns. If you have very little debts, a second income to replace your needs, not a very big asset or estate, then you can forego life insurance but if the case is the reverse, then life insurance after retirement is a perfect yes to you. Decide and move ahead wisely!