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.

Read More

Get ₹5 Lac Health Insurance starts @ ₹200/month*
Get ₹5 Lac Health Insurance starts @ ₹200/month*
Tax Benefitup to Rs.75,000
Save up to 12.5%* on 2 Year Payment Plans
7 Lakh+ Happy Customers

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Get insured from the comfort of your home No medicals required
I am a

My name is

My number is

By clicking on ‘View Plans’ you, agreed to our Privacy Policy and Terms of use
Close
Back
I am a

My name is

My number is

Select Age

City Living in

    Popular Cities

    Do you have an existing illness or medical history?

    This helps us find plans that cover your condition and avoid claim rejection

    Get updates on WhatsApp

    What is your existing illness?

    Select all that apply

    When did you recover from Covid-19?

    Some plans are available only after a certain time

    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.  

    Written By: PolicyBazaar - Updated: 30 July 2021

    Health insurance articles

    Recent Articles
    Popular Articles
    Does Health Insurance Cover Orthopaedic Surgery?

    09 Oct 2021

    Orthopaedic health conditions have become quite common in India...
    Claim Settlement Ratio Vs Incurred Claim Ratio - Know the Difference

    07 Oct 2021

    Every health insurance plan comes with unique benefits to attract...
    What Is The Right Age To Purchase A Health Insurance Policy?

    30 Sep 2021

    Every person must have a health insurance policy to deal with...
    Does Your Health Insurance Remain Valid If You Move Abroad?

    30 Sep 2021

    Health insurance is one of the best investments that you can make...
    Does a Health Insurance Policy Cover Depression?

    27 Sep 2021

    Stress is one of the biggest contributors to lifestyle diseases...
    Best Health Insurance Plans in India 2021
    Finding the best health insurance plan from so many different health insurance companies can get confusing for many...
    Top Maternity Insurance Plans
    Maternity or pregnancy is an important phase of life, and one needs to prepare in advance to embrace parenthood...
    Top Family Health Insurance Policies in India 2021
    From the air we breathe to the food we eat; everything is intentionally or unintentionally subjected to...
    Health Insurance Claims Ratio- Things You Should Look Before Buying Health Insurance
    There has always been a doubt in customers mind about whether the private company will keep its side of the bargain...
    Best Health Insurance Plans for Senior Citizens in 2021
    Considering the increasing percentage of medical inflation in India, it has become an absolute necessity to buy...
    Close
    Download the Policybazaar app
    to manage all your insurance needs.
    INSTALL