Life Insurance Plans Tailored for Retired Women with Dependents
Life insurance plans are a crucial part of financial planning for men and women alike. These days, women have picked up the baton to not only support but actively provide for their families. It is a major responsibility which requires a lot of planning and understanding of the financial landscape.
Purchasing suitable life insurance plans goes a long way in easing the mind and providing a financial backup for dependents. Certain types of life insurance also help you earn more money with investment profits and bonuses. Choosing the right types of life insurance is critical for a balanced approach.
What are life insurance plans?
Life insurance plans are a form of financial contract with an insurance provider that allows you to effectively provide a financial backup for your loved ones. You start by choosing the types of life insurance that fit your financial goals and those of your loved ones. Then you choose the coverage and policy tenure.
The terms of life insurance plans state that in the event of your demise during the policy tenure, your beneficiaries will receive the sum assured, i.e., coverage, as the death benefit. Certain life insurance plans also provide a maturity benefit if you survive the policy tenure.
While the death benefit helps your beneficiaries navigate financial responsibilities and life goals, the maturity benefit can act as an incredible corpus for your retirement years. The death benefit is an essential financial plan, especially for retired women with dependents. The maturity benefit can also help you navigate your own expenses and provide for your loved ones after retirement.
What are the types of life insurance?
Life insurance plans come in many forms. Based on the type of coverage and policy tenure you desire, the benefits of the life insurance plans and the rate of premium that you feel comfortable to manage, you can choose the type of life insurance for you.
Here are the different types of life insurance plans to consider:
- Term insurance plans - Term plans are affordable types of life insurance that are available for 10-100 years with a high sum assured. These plans are further divided into the following:
- Increasing term plans
- Decreasing term plans
- Level term plans
- Term insurance with return of premium
- Single premium term plans
- Endowment plans - These life insurance plans offer bonuses over time if you are a participating member by investing the premiums you paid into secure market instruments.
- ULIPs - These types of life insurance help you to set up a death benefit for your loved ones and allow you to invest in the Unit-linked market to earn profits in real time.
- Retirement plans - These types of life insurance are excellent solutions to set up a corpus for your retirement years. You can receive the payout as a lump sum or monthly instalments to ease your financial burdens.
- Child plans - These types of life insurance help build a corpus for your children so they can utilise the benefits to pay for life goals such as higher education, marriage, etc.
- Whole life insurance plans - These life insurance plans secure your entire life span under the policy. Therefore, your beneficiaries will receive the death benefit in the event of your demise.
You can choose the types of life insurance that serve the most purpose in your financial plan.
How tailored life insurance plans help retired women
There are several benefits to choosing the right life insurance plans. Based on the benefits of each type of life insurance, here’s what to look forward to:
- A high sum assured guarantees that in the event of your demise, your beneficiaries can repay all the debts and liabilities, and still have enough settlement amount left over to pursue their goals.
- ULIPs, endowment plans, and other such types of life insurance help you earn money in real time through profits and bonuses. After retirement, you can use the income from these life insurance policies to pay for necessities, emergencies, etc.
- Term insurance plans are affordable and come with flexible tenure. It ensures that no matter how long or short you estimate your mortality, your beneficiaries will be sufficiently covered.
- Life insurance plans also offer tax benefits under Section 80C, 10(10)D, and 80D. These tax benefits allow you to save money while securing the future of your loved ones.
- Life insurance plans such as child plans allow you to build a corpus for your dependents, especially children. After your retirement, you may not have to worry about saving for their higher education, life stages, etc., as the payouts from the policy will take care of those responsibilities.
Life insurance for retired women can be tailored to your specific needs. Policies such as retirement plans also help you navigate the excessive financial burdens in your later life stages, which can be highly beneficial when you don’t have a steady source of income.