Retirees can make decisions that safeguard their financial security and ensure their families’ futures by being aware of the need for life insurance in retirement. Let’s go over some key arguments in favour of why retirees need adequate insurance cover.
Safeguarding Dependent Family Members
Life insurance financially protects your loved ones if the earning family member suddenly passes away. Life insurance may assist to make sure that your dependents, such as your spouse, kids, or grandkids, are financially taken care of. It can serve as a source of inheritance, pay off unpaid obligations, cover funeral costs, and compensate for the loss in income.
Managing Debt Obligations
Many retirees and elderly people may still owe money on their credit card balances, home loans, personal loans, or mortgages. By helping to pay for these debts, life insurance saves their loved ones from acquiring outstanding debts after the demise of the senior.
Helps In Availing Loans After Retirement
Having an adequate life insurance cover can help retirees avail loans more easily, as the guarantee of repayment under the risk of death is undertaken by the insurance policy. Life insurance cover can help retirees enjoy extended credit facilities by acting as a source of surety for the lender.
Leaving Behind A Legacy
Senior citizens and retirees can leave an eternal legacy by getting life insurance cover. You may have an influence long after you’re gone by choosing to help your family members to receive the life insurance pay-out. This might be a method for you to leave something behind for future generations and to help your dependent get the desired lifestyle after your demise.
Peace And Contentment
Having a life insurance policy can provide contentment, knowing that you have taken the essential steps to protect your loved ones and safeguard their financial well-being in the future.
THINGS TO KEEP IN MIND
While purchasing a life insurance policy, it’s critical to examine your financial status and interests. You may choose the right insurance policy options depending on your family’s specific financial requirements while consulting an insurance or financial counsellor for in-depth insight.
When weighed against traditional money-back life insurance plans, term life insurance carries a more affordable premium, making it a feasible choice for retirees and senior citizens who live on limited income. Term plans are easy to understand, therefore senior citizens don’t need any technical knowledge to avail them.
If you have already accomplished your financial goals and have sufficient corpus to meet your family’s financial needs for the rest of your life, you may choose not to take a life insurance policy. If you already have a life policy, never miss out its premium. It’s important to point out here that most of the insurance companies allows entry age of 65 years for buying a new life insurance policy.
Amit Sethi is a Financial Journalist