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Which Are The Must-Have Financial Products For Old Age?

You may risk your lifetime effort towards getting the desired retirement life if you don’t get the right financial instruments. Do you want to know about such must-have financial products?

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Amit Sethi
August 18, 2023
The Must-Have Financial Products For Old Age

The Must-Have Financial Products For Old Age

Despite having a huge corpus, you may end up having a retirement with financial distress, if you don’t have the essential financial product. So, let’s find out The Must-Have Financial Products For Old Age.

 

Health Insurance Can’t Be Ignored

 

Senior citizens have a high chance of getting hospitalized at least once during their old age. The cost of hospitalization is increasing every year, and if you are not adequately covered by a health insurance policy, you may end up spending your entire retirement corpus towards it. How would you manage your retirement expenses if you spent your corpus for medical purposes? So, the best way to avoid such a situation is to ensure adequate health insurance coverage during your retirement. Make sure that your health policy allows protection from all types of ailments and that there is no capping on most of the treatments. Beware of the exclusion list to avoid financial trouble when you need hospitalization.

 

Invest To Generate Regular Income For Day-To-Day Expenses

 

During retirement, people usually depend on the income generated by their investments to meet their regular expenses. So, it’s crucial to invest a substantial portion of the retirement corpus in appropriate assets that can provide a consistent return on a regular interval for meeting the essential expenses. It is also important that the rest corpus is invested so that it can cover the other financial goals and take care of the rising lifestyle expenses due to inflation.

You can invest in FDs with monthly interest income, a post office monthly income scheme, SCSS or a pension plan for getting a timely regular income.

 

Contingency Fund To Overcome Financial Emergencies

 

Financial uncertainties can hit you anytime, and you must stay ready. Disturbing your regular investments or the corpus meant for meeting other financial goals can cause financial distress at a later stage. So, the best way to meet the financial emergency is by using the contingency fund. You can create a contingency fund by investing in highly liquid assets such as FDs, a liquid fund or a high-interest savings account.

 

Apart from the must-have financial products mentioned above, you must also stay prepared for getting a loan such as a loan against securities, reverse mortgage loan or a loan against property to overcome financial challenges, especially if the contingency fund falls short. For example, during hospitalization, if your health policy and contingency fund are inadequate to meet the expenses, you can take an immediate loan to overcome financial distress.

 The author is an independent financial journalist

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