How Life Insurance Plans can help in your retirement years
Posted: Feb 24, 2017
While planning your retirement, it is always advisable to look out for varied alternatives and options. Life insurance plans and other pension plans and policies available online are too lucrative to be true. Know what mistakes you should avoid while applying for your retirement plan with this carefully curated list of Dos and Don’ts mentioned below.
One of the most common mistakes people do is consider retirement as the latter part of their financial goals. They start saving and investing in retirement plans and policies at the end of their work life. A number of finance advisors always prefer to suggest the need of starting a retirement plan in the early 30s or late 20s. This is considered as the optimum age to start investing in the right pension plan.
Assuming that it would be easier to invest in life insurance plans for retirement after a home loan is fully recovered or after their child’s marriage is a wrong approach. It is equally important to be prepared well in advance for the rest of the retired life.
Starting early has its own windfalls. You get to have a longer period of time to grow your money or finances. Starting early, can help you build a larger amount for your retirement. Take for instance, if you start with your retirement plans at 20, for a rate of interest of 12%, then you may need to pay approx 4000 INR to grow approximately 6 Cr in 40 years. But, if you delay it by 25 or 30, then you may only be able to grow about 2 Cr by the time you reach 60 years.
Steps to consider: One needs to consider their needs and wants for their post-retirement finances. This will help you to regularize your income sheets while also aiding you to advise better on your retirement plans. India is the hub for life insurances and you can find varied deals and offers available online as well as offline.
Look out for better investment opportunities, if you already have invested in ULIPs or any similar kinds of investment funds then take advice from your financial advisor to learn the benefits of investing in equity mutual funds.
Long-term investments are unable to fulfill emergencies and other untimely contingencies. It is always better to invest in a health insurance plan or a medical claim. In an unfortunate event of a mishap or incident that requires immediate funding, these retirements plans will ease the financial burden.
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