Many people do not see life insurance as a vital part of retirement income plan. They think that life insurance is just a way of protecting families financially in the event of something unfortunate.
However, a life insurance policy has the potential to do so much more, if fully utilized it can become the foundation of your retirement planning.
How can life insurance help in retirement planning?
- Income Protection – You can’t invest your way out of an untimely death. If after retirement one spouse passes away, the surviving spouse always suffers financially as there is a drop in the retirement income. Life insurance ensures that there is an alternative to that retirement income. It ensures that you have enough money that your own retirement income does not suffer and you can maintain your standard of living throughout your retirement.
- Improves your return In recent years there has been a significant decline in interest rates and investing in bonds and FDs is probably not a good idea for a retiree as the risk is very high. Life insurance policy has proven to be a great substitute for FDs and bonds as it can provide better returns with so much less risk.
- Tax benefits Life insurance can provide tremendous tax benefits as it gets tax-preferential treatment. This treatment allows an individual to have more flexibility over his income. Life insurance also provides many deductions under section 80C and section 10(10D) which can also further lower your taxable income.
How can a Triple Advantage Plan meet your retirement goals?
- Limited payment period allows you to pay from your present income for your future needs so that you don’t have to spend your retirement income on premiums.
- You can get the first lump sum payment at the end of premium paying term, the next when you reach the age of 75 and the last at the time of maturity or if you reach 100 years of age.
- You can also get discounts on the higher sum assured on maturity.
- Loan facility is also available to meet any unforeseen or urgent liquidity requirement.
- Tax benefits are also available under section 80C or section 10 (10D) of the Income Tax Act, 1961.
Apart from these, you can always make your plan more suitable according to your lifestyle by choosing from our different riders like accidental death benefit riders, critical illness riders, total or permanent disability riders etc.