After making sure your children are taken care of, it is time to start thinking about your spouse’s and your future. Your employment years are nearing an end, making you feel wary of the looming income-less years. But this need not be the case. Instead of depending on your children, it is better to make sure you and your spouse are financially independent and are able to continue living the life you are used to, without any hiccups.
Why life insurance?
You must have heard that life insurance in your 50s is expensive as you will have lesser number of years to accumulate a corpus. Moreover, health can be an issue as most of you may be hit by diabetes or hyper tension etc. Life insurance plans are always cheap for young and healthy people.
Most of you in your 50s tend to already have a financial portfolio in place, which would definitely include some insurance plans. It is time to review the old plans and check out if you are on track. If you have invested in market-linked life insurance plans with 100% exposure to equity, you have to sit down with your financial planner and decide if it now requires shift to debt fund. This would ensure that your corpus is protected from the volatility of the market as you are nearing your pension years. Many of you must have bought financial assets to take care of your child’s higher education, to protect your family from home loan liabilities etc. In your 50s, you must ensure that you have a pension plan in place. After making financial decisions all your life, why would you suddenly want to give it up? Pension plans from life insurer ensures that you receive a monthly income while you are still living, enabling you to maintain the same life style as earlier.
Now that you are done with most of your responsibilities, you may still wish to leave a financial buffer for not just your children but also your grandchildren. Life insurance helps you to leave an inheritance as well as save on taxes.
In many ways life insurance can work as estate equalization of your wealth amongst your family members. For example: if you were running a business and only one of your two kids wished to inherit it, you can leave a life insurance policy of the same value for the other child.
This is the age where you are more prone to health issues and therefore it makes good sense to get a comprehensive health insurance that covers both your life as well as your medical expenses. Hospitalization can wipe out all your hard-earned savings; it makes good sense to get a health cover that would take away this stress.
Nowadays, even funerals tend to be a costly affair. Life insurance helps you to avoid leaving this financial burden on your children or spouse. Through a life cover, not only will they get a lump sum amount in the event of your death, but also a regular income over and above it. Thus, your family members will have to incur no additional expense for the funeral.
What kind of insurance should I opt for?
The key benefits of a Pension and Annuity combo are:
Mr. Tripathy joined HDFC Life in 2004 and has been responsible for Marketing Strategy, Brand Planning, Advertising, Communication & Media, Customer Insights, New Product Development, Product Life Cycle Management, Online and Digital Strategy, E-Commerce, Customer Analytics, & Corporate communication. He started his career with GCMMF Ltd. in 1992. Since then he has worked with various reputed organizations like Frito-Lay (PepsiCo), Mattel and Reliance Infocomm before moving on to his current role at HDFC Life.View Complete Profile
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