As one moves through the different stages of life, retirement stands out as a crucial one. This phase requires you to focus on financial security in the early years. It helps you prepare for peaceful golden years. Do you know how you can do that? Well, there are several plans, and insurance investments happen to be one of the popular options.
Finding the best term insurance plan can play a key role here. While this investment may be defined as a simple and inexpensive way to protect loved ones, it has several variations also available. Let’s take a closer look at it and help you pick the best plan for your retirement.
Understanding the Role of Term Insurance in Retirement Planning
A term insurance plan is one of the investments that is purely meant for the financial protection of the beneficiaries. It is offered in the form of a death benefit in case of the insured one’s untimely demise during the policy’s term. Nevertheless, picking the best term insurance can make it seem like an investment for retirement planning. As the main focus is on building up savings, it has advantages that you can benefit from in your golden years. They are:
- Affordability: Several term plans are more affordable than other forms of retirement investments, making it easier to secure your golden years.
- Flexibility: You can choose the plan you’d invest in, its coverage amount and term length that best suits your needs and budget.
- Tax Benefits: Premiums paid annually qualify for deductions under Section 80C, shielding policyholders from taxation up to the limit.
Exploring the Best Term Insurance Plan for Your Golden Years
Another outstanding benefit of choosing term insurance as your retirement plan is that it has different types. In fact, there are rider add-ons that you may add to your basic plan. Here are some of these types listed:
- Increasing Term Plans: This type of policy allows you to add to your existing policy’s amount to cover for inflation.
- Return of Premium Term Plans: Upon survival of the policy term, a return of premium (ROP) feature involves a refund to all the premium amount paid. The pool of funds made at a lower cost makes it a great investment for your retirement.
- Convertible Term Plans: Here’s a flexible term plan that lets you convert your existing life insurance policy into a permanent life insurance plan (whole life).
Once you choose your best term insurance plan from these types, here are a few rider add-ons to consider adding to it for additional benefits:
- Critical Illness Rider: A diagnosis of any critical illness, such as cancer, organ failure, heart attack, etc., among many other constraints, adds up to your financial position. This rider shall provide the required support in such situations.
- Accidental Death Benefit Rider: In the event of an untimely demise, an additional sum assured will be given to the nominee along with the original cover amount.
- Waiver of Premium Rider: If the policyholder is disabled for any reason and unable to work, the premium will be waived off for the remaining future liabilities.
Choose the Best Term Insurance Plan for Your Retirement Years
The best term insurance plan adds a critical layer of security to the retirement phase of your life. Ideally, there are many ways to invest in a plan. However, when you opt for term insurance investments, remember to pick a reliable one. Always check the insurer’s claim settlement ratio as it reflects their credibility.
For instance, insurance providers like Canara HSBC Life Insurance have a claim settlement ratio of 99.23%. It clearly suggests that they value the promises they make. Their online insurance range is full of best term insurance plans that you may invest in to secure your retirement. Some of them are iSelect Guaranteed Future, Young Term Plan, iSelect Smart360 Term Plan, etc.
Visit their official website to learn more and start with your term plan online today!
