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Life insurance is an integral part of one’s life. It takes care of the financial needs of the insured’s dependents even after the insured’s demise. The financial safeguard guaranteed by a life insurance policy ensures a stress-free life and reduces the stress of the family’s future. Besides life cover, retirement planning also is one of the benefits that one can accrue from insurance products. However, when it comes to post-retirement, the common perception is that insurance is no longer needed as there are several other funds at one’s disposal such as a pension, annuity, etc. But these notions tend to be incorrect when the reality of life dawns upon you.

Let us a look at why life insurance is essential after retirement.

1. Inadequate Pension Amount
   The pension amount is usually based on the last drawn income before retirement. So, this takes into account the day-to-day expenses. But if the pensioner dies, the pension amount would be decreased by half, thereby leading to financial crunch for the spouse.  The situation is further worsened if the insured’s pension is the spouse’s only source of income. Therefore, having the proceeds of a life insurance policy would always be a significant backup in case there is any shortage of funds.
   In cases where there is no pension at all, life insurance becomes essential as the proceeds or cash value of this life insurance would come in handy during their retirement period.
    
2. Medical Expenses
   Old age comes with a lot of baggage; one that makes frequent encounter is a health ailment. It may be lifestyle diseases like diabetes, heart ailments and blood pressure, or critical illnesses, or common conditions that tend to linger due to the weak immunity. So, the medical expenses will rise, leading to financial strain in the household. Moreover, not all ailments are covered under health insurance. This is why we need life insurance for retirement so that extra expenditure can be taken care of with the proceeds of the insurance plan.
    
3. Unwanted Eventualities
   Life is full of uncertainties, and it never ceases to amaze us with its surprise element. This makes life insurance vital in taking care of such unwanted eventualities such as untimely loss of a family member that can be a spouse as well as a child or critical illness or some monetary losses. In such conditions, life insurance cannot help with the personal loss, but the financial loss can be recovered up to a large extent.
    
4. Pay Your Debts
   There are many cases wherein a debt lingers around for long and continues to bother even after retirement. There are also cases, wherein the debt was taken at a later part of your life, and it persisted till retirement. A well-planned life insurance product can help you with such obligations, thereby helping you lead a peaceful life and let you enjoy your retirement.
    
5. Affordable Premiums
   Term life insurance policy has affordable premiums, which cushions your expenditure while also safeguarding your spouse’s financial security.
    
6. Tax Benefits
   An individual above the age of sixty gets extra tax benefits under the IT Act. These benefits can be profitable if and when a life insurance plan is taken. For instance, the taxable amount either from post-retirement income or pension would considerably be reduced with the payment of premiums. Moreover, the death benefit and maturity of life insurance products are exempted to tax under Section 10(10D).
    
7. Additional Riders
   Under the life insurance riders’ scheme, insurance products offer critical illness cover on payment of additional premium. Such a cover offers lumpsum payment when illnesses like cancer, heart failure, heart attack, paralysis, stroke, etc. are detected. This safeguards your savings and ensures a stress-free retirement.
    

The Bottom Line
Old age is a period where life tends to slow down, but the whole world continues at the same pace, so it is essential that your old age does not make you irrelevant. Most of it can be paced up with a commensurate amount of funds. A life insurance for retirement will always be a handy financial instrument that can help you keep up with the world. Further, this policy premiums can be adjusted based on your needs. In cases, where there is already sufficient source of income either from funds or other investment products, the premium can be lowered. It is imperative that while buying a life insurance policy, one needs to look into the flexibility and ease of making changes to it. Browse the website to know more about Term Insurance and the various Term Plans offered by PNB MetLife.

Disclaimer: 
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
IRDAI Registration Number 117. CI No: U66010KA2001PLC028883.
For more details on risk factors, terms and conditions, please read the respective sales brochure carefully before concluding any sale. Terms and Conditions Apply. Goods and service Tax (GST) shall be levied as per the prevailing tax laws which are subject to change from time.
The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
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