After you have toiled tirelessly at workplace, you are looking forward to the glorious retirement years. You have worked hard all your life to make sure you provide for your family’s needs and care. The purpose of life insurance is to ensure that your loved ones can carry on with their chins up even after you are gone.
Essentially, a life insurance policy pays for the financial loss to the dependents of the assured, when the breadwinner for the family passes away. However, by the time people have reached their retirement age, their children and unmarried siblings have grown up and moved out to lead their independent lives and there are no dependents as such, so sometimes people give up paying for their life insurance. It may not be the best thing to do.
Who needs Life Insurance Post Retirement?
We all know money is needed at every step to survive the ordeals of life. While after 60 people still look for the best health insurance plans, investing in life insurance policies seems to vanish from their list of priorities.
Officially, people in service retire after 60, but most senior citizens who are shop keepers, professionals and running their own business often work way beyond 60, even 70. Pensions to even public sector employees are not provided anymore so, it is important to keep working to keep alive a steady stream of cash flow. Such people must keep their life insurance policies alive even after retirement.
Children may not be dependents any more, but spouse is there “till death do y’all apart”. Life expectancy has increased over the past couple of decades. So don’t be surprised if someone who retired yesterday still has parents who are in their 80s to care for. If something happens to the breadwinner, the entire family just falls apart and are left to fend for themselves at such a fragile age. It is imperative a life insurance policy is kept running.
Some may not have had an opportunity to build a substantial inheritance for their wards. In India, there is lack of knowledge on proper financial planning, especially for retirement. Many retirees who hadn’t invested in a pension plan that will keep paying their dependents even after their demise and also those who wish to leave behind a legacy find this an attractive option.
Different Types of Life Insurance Plans for Senior Citizens
Traditionally, term plans are designed to end by the time the assured life is 60 or 65 years old. So now that we know that it is ideal for some people to keep that policy alive, let us look at some of the insurers who offer term plans post retirement.
Crux of the Matter
It is important to remember that a life insurance policy is not about you. It is taken to keep up with your promise to look after your family even when you are not around. After all, it would be difficult to deal with the loss when you are gone and you can only hope to ease the pain by ensuring they don’t have to face financial hardships. Since you continue to work way beyond your official retirement age, your life insurance policy must continue too.
Ofcourse, whether you want to keep the policy running or ditch it depends entirely upon your needs and preferences. If you are still struggling on what to do, seek a financial advisor’s counsel.
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