5 Insurance Options You Can Consider At Least 10 Years before You Retire

Insurance plays an important role in one’s retirement planning. It acts as a life cover that protects one’s family in the event that the policyholder should die unexpectedly. It can also provide health cover to protect the policyholder and their family members against healthcare costs eroding their retirement corpus.

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      If you plan to retire in 10 years’ time and would like to purchase insurance to safeguard yourself and your family against unexpected situations, you can consider the following while making a pension plan:

       

      1. Consider Purchasing a Retirement Plan

      Nowadays, insurers are providing special market-linked and traditional non-market linked plans. These plans could include a death benefit and additional riders like a life cover, guaranteed bonus and maturity benefit. Such plans also provide tax benefits. SBI’s Saral Pension plan, for instance, provides a guaranteed bonus of the simple reversionary variety for the first 5 years at 2.50% of the sum assured, and 2.75% for the next 2 years. Such a bonus is applicable only to policies which are in force.

      2. Opt For an Insurance Plan With Life Cover and Savings Combined

      If you’d like to consider building a corpus for retirement while also attaining life cover, an endowment plan might fit the bill. Endowment plans provide savings and life cover under a single plan. It acts as a life insurance policy which would help you save regularly over a specific time frame so that you can get a lump sum amount once the policy matures if you survive the policy term. Furthermore, if you should die unexpectedly during the policy term, your nominee will receive the full sum assured. Thus, returns are guaranteed. The lump sum can be used to fund your child’s educational goals, or marriage, or even for retirement planning.

      Insurance Options for Senior Citizens

      Generally, a life insurance plan with a savings component can be referred to as an endowment policy and they can be either of a Unit-linked insurance plan (ULIP) or a non-ULIP kind. However, it is the saving-linked non-ULIP insurance plans that are generally termed as endowment plans.

      You May also like to Read: Why You need to require Health Insurance for Senior Citizens?

      3. Earn Regular Income Through Money Back Plans

      Money back plans are a type of endowment plan. The main difference between the two is that in a money back plan, you can earn assured returns at regular intervals. Thus, the sum assured is deducted on a regular basis and paid to the policyholder. In addition, the policyholder will get maturity benefits if they should survive the term of the policy. Furthermore, death benefits are extended to the nominee, should the insured die unexpectedly. For instance, LIC’s New Money Back Plan 20 Years provides a death benefit where the nominee will receive 10 times the annualised premium (which is 125% of the basic sum assured) as well as a vested reversionary bonus and the final additional bonus as well. Thus, if you would like to earn a regular income with assured returns, then a money back policy is a low-risk option as the premiums are not invested in the securities market.

      4. Ensure That You Have Adequate Health Insurance

      Nowadays, you can purchase health insurance even when you are well into your 50s.  The premium is much higher as opposed to the premiums charged to younger individuals. This is because there is an increase in health risks as you age. A policy with a total payout of Rs. 1 crore for example, will have a premium of Rs. 3,259 for 20 years old as opposed to a premium of Rs. 20,333 for a 50-year-old. However, it is worth it as the risks of contracting a serious health issue increase with age.

      5. Consider Loan Insurance for Easy Payback of Car and Home Loans

      Loan insurance aids in ensuring that your family would not be financially burdened with having to pay back loans, if you should die unexpectedly. Some plans like the Bajaj Allianz iSecure Loan offers customers the option of either opting for an individual cover or a joint cover with a business partner or spouse. The death benefit which is payable at any point in time would be the prevailing sum assured. The premiums are determined on the basis of the policyholder’s current age, the sum assured, policy term, the interest rate of the loan and the payment mode for the premiums.

      Disclaimer : *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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      Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

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      *We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30- minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881.

      *Product information is authentic and solely based on the information received from the Insurer. Policybazaar is acting only as a facilitator and claims settlement shall be at the sole discretion of the Insurer. Policybazaar does not provide any medical or surgical advice or diagnosis and is not responsible for your interactions / treatment by a medical practitioner/hospital. Please consult a registered medical practitioner for any medical or surgical advice. The Information that you obtain or receive from Policybazaar, and its employees, or otherwise on the Website is for informational purposes only. As per the Insurance guidelines, you are allowed to cancel the policy with-in 30 days from the date of Issuance of policy.This option is available incase of policies with a term of one year or more.

      *All the health insurance plans cover hospitalization expenses including COVID-19 treatment cover up to the specified limits. You can also buy specific COVID-19 health insurance policies such as Corona Kavach Policy and Corona Rakshak policy.

      **All savings and online discounts are provided by insurers as per IRDAI approved insurance plans. #Tax Benefits are subject to changes in tax laws. GST Exemptions depend on fulfilment of qualification criteria and submission of relevant documents.

      *₹1748/month is the starting price for a 1 crore health insurance for an 18-year-old male, with no pre-existing diseases. Discount on renewal premium is subject to the number of wellness points earned in the health insurance policy. For more details about the plans, please read the sale brochure carefully to get upto 100% discount on renewal premium.

      *₹400/month is the starting price for ₹ 5 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

      *₹541/month is the starting price for ₹ 10 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

      *₹762/month is the starting price for ₹ 1 Crore Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

      *₹243/month(₹ 8/day) is the starting price for a 5 lakh health insurance for a 20-year-old male, non-smoker, living in Bengaluru with no pre-existing diseases

      *₹2020/month is the starting price for ₹ 1 Cr Health insurance for a 50 year old male & 50 years old female, living in Bangalore with no pre-existing diseases rounded off to nearest 10.

      *₹390/month (₹13 per day) is starting price for 1 cr. Health insurance for 25 years old male, with pre-existing diseases, residing from tier 1 city rounded off to the nearest 10.

      *No medical tests are required unless requested by the insurer’s underwriter. In-case of pre-existing diseases relevant medical proof would be required as per the terms and condition of the policy opted.

      *The values taken for effective cost calculation are indicative values and may change as per the selected plan.

      *Coverage upto double the amount of Sum Insured is available on certain covers for a minimum plan of Rs. 5 Lakh on the first claim only to an individual of upto 45 years of age with no pre-existing diseases. The benefit is available with or without extra cost depending on the plan chosen.

      *Coverage of pre-existing diseases is provided by insurer as per their underwriting policy.

      *The scope of coverage may vary from plan to plan.

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