Planning for retirement is an essential and meticulous task. No matter, at which stage of career you are at; consider retirement savings and investing as one of your biggest priorities. A good financial plan should secure you and your family members after your retirement once you step out of your professional life.

Retirement can be overwhelming. The combination of no regular income along with responsibilities is not a great one. Hence, saving up for retirement is not an option but a necessity. Most working professionals save up in EPF to ensure a smooth retirement and consider life insurance as not one of the avenues for this goal. Read on to know why insurance is necessary for the second innings of your life.

Investments don’t cover untimely death

Life insurance covers your nominees against any financial hardships in the event of your death. Whereas, for investments, the goal is not to prepare for such unforeseen circumstances but to get lucrative returns on the investment. Hence, having life insurance is incredibly important as a shield against unfortunate events especially when you don't have a steady income.

Save yourself from taxes

For life insurance, you not only get tax exemption on the premium payments but also on the maturity amount. So, don’t just look at the high returns of all the investments while calculating your wealth, consider the amount that will be eaten up by taxes. Sometimes it’s very likely that the insurance maturity amount in hand is higher than returns from other investments that had higher interest rates. Therefore, you don’t have to dwell on tax payment fears and enjoy the corpus you built with insurance.

Get good returns at low risk

All the money pumped into the insurance policies is never affected by market forces, unlike the money that you invest in stock and equity markets. The returns in cash back and endowment insurance policies are often the same as some other instruments with moderate risk. When you are about to step out of the workforce, a fluctuating market and dwindling investments are the last things you would want. Hence, to eliminate any such unpredictable damage to your retirement wealth, invest adequate amounts of money in insurance policies.

Save healthcare costs

With old age, it is very likely that your health care costs will go up. Get life insurance cover with riders that cover healthcare costs and cover you against critical illnesses. There will be no or limited income after you retire and a hefty medical bill will only make your financial situation tougher.

Retirement brings with it a new and relieved life free from work stress and ample time to pursue your passions. It is most definitively an exciting beginning of a new phase in your life. Get insurance and start with your new life without any financial pressure.

Learn more about our 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.

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