The mere thought of retirement can sound intimidating to a lot of people because of the many uncertainties involved. These worries are not just centered around health concerns but also whether you will be able to manage financially and support dependents in your family or not.
Can Life Insurance be Your Saviour?
Over the years, life insurance has emerged as a potent tool in the hands of citizens to safeguard the interests of their family members. Today, one can quite easily buy life insurance online by completing few simple steps and even add money to fund their life post retirement. The online route empowers one to compare different policies across service providers and arrive at an informed buying decision.
Many reputable insurance service providers, through their online portals, also provide you with the option of using a premium as well as retirement planning calculator online to know exactly which plan will yield the maximum savings for you. All you have to do is feed in a few inputs to arrive at a desirable amount that you would have to invest to avail benefits during your retirement. Some of the typical input parameters could include your retirement age, current age and average monthly expenses.
While there is no foolproof way of arriving at an exact amount that you will need during your sunset years, given the uncertainty around how long will you live and your health condition, such retirement calculators available onlinecan help you get as close as possible to the funds needed for retirement, since they also take into account an estimated rate of inflation that would be prevailing at the time of your retirement.
The life insurance industry in India is the largest in the world, with over 36 crore active policies, as per a news report published on MoneyControl. The same report goes on to add that new life insurance premiums have grown by 26% to reach ₹1.75 lakh crores in FY17. These numbers do look promising but a large number of investments in life insurance products have occurred because of the tax benefit that they deliver, courtesy the exemptions provided in Section 80C of the Income Tax act.
Adequately funding retired life is one of the important benefits that you can aim to achieve by investing in life insurance policies. If you are thinking on similar lines, you must start early because the premium amounts will increase as you get older.