What does permanent life insurance mean?There are a variety of life insurance plans that are available; one of them is called a permanent life insurance plan. This plan does not have an expiry date and is with you till death. This is particularly helpful for those who are planning for retirement and want to keep their family secured financially.
Benefits of permanent life insurance for retirementThere is a lot of discussion around whether one should take a regular life insurance plan or a permanent one to reap maximum benefits post-retirement. There are pros and cons to both of them.
Here are a few reasons why one should consider going for a permanent life insurance plan:
- Family security increases:
Some family members may be dependent on the policyholder’s pension. The unexpected death of the pensioner might put their family at great financial risk. Permanent life insurance covers this risk and ensures that your loved ones can feel safe financially and have something to hold onto.
- Allows for better planning:
Permanent life insurance plans come with a low and fixed rate, helping you to build on an emergency fund. When you know what amount you need to pay, it can help you plan expenses for other things better. It reduces the risk of having an unexpected amount to pay post-retirement for insurance.
- Retirement goal savings:
People have different plans and goals concerning retirement. It could be anything, a simple life, a fancy holiday, leaving behind money for kids, etc. Permanent life insurance can help you get close to these goals by serving as afund saver. It eliminates the financial security stress from your retirement planning.
- Helps in making retirement planning less overwhelming:
There are plenty of things one needs to take care of while retirement. The phrase in itself can be quite emotional and overwhelming for many people. In this case, knowing that one department of your retirement planning, i.e. insurance has already been taken care of can make you feel more prepared for what is to come.
- Debt management:
A long term life insurance can certainly help the family pay off debts in case of policyholder’s untimely death before the repayment. This becomes another boon towards keeping your loved ones financially secure even when you are not around.
Learn more about online life insurance plans
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
Disadvantages of Early Retirement - What Happens When You're Not Working?
Early retirement seems to be good, many people enjoy life without working especially with extra earnings. But they are not aware about the cons. Lets explore the disadvantages of retiring early to save your retirement life.
5 Benefits of Health Insurance that Makes it a Must Have Cover
Here are the 5 benefits of health insurance that makes it a must to cover
When Should You Withdraw Money from a Mutual Fund?
In case of a sudden change in fund strategy or an underperformance scheme for more than 3-4 years, it makes sense to withdraw money.