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Chetan Vasudeva stresses the importance of financial security for fathers through insurance.
It is essential to plan ahead when planning for insurance. The earlier a policy is bought, the lower the premium and the wider the coverage.
Authored by by Chetan Vasudeva, Senior Vice President – Business Development at Elephant.in: Father’s Day is an emotional reminder of the sacrifices, the strength, and the unflinching support our fathers extend throughout our lives. While we gladly celebrate it with tokens of appreciation, one of the best gifts we can provide fathers, is financial security in the later years. With life expectancy is on the rise and lifestyle-driven health problems more prevalent, planning a secure and comfortable retirement has never been more imperative. Insurance is a central part of this journey, not just as a backup plan but as a key channel to financial freedom.
Why Insurance Is Important in Retirement Planning
As life expectancy in India has now gone beyond 70 years, most will spend 20 –30 years in retirement with no active income. More than saving and investing regularly, it takes protection against unexpected risks to have a comfortable and financially independent life in those years. Health insurance is important in controlling India’s increasing medical expenses, which are currently rising at 14% per annum.
Life insurance is an essential part of any prudent financial plan. Through working life, term assurances cover large amounts at modest premiums, paying for dependent care in the event of death. When retirement is getting nearer, endowment and whole-life assurances take centre stage. These policies not only guarantee life cover but are also disciplined savings mechanisms—paying either a lump sum upon maturity or an income stream. Significantly, they also facilitate legacy planning, making sure that your money is passed on securely and with significance.
Health insurance, specifically designed for senior citizens, is important in the post-retirement years. Health problems become more common and complicated with advancing age, and older people are more susceptible to hospitalization, chronic ailments, and lifestyle disorders. A good health insurance policy reduces these risks without exhausting one’s hard-earned money. Policies that cover pre-existing diseases after a waiting period, provide lifelong renewability, and provide extensive protection for hospitalization and outpatient care are necessary. Usually, personal health insurance policies for elderly citizens are better than family floater policies, which might not provide adequate cover for senior family members.
Critical Illness and Personal Accident Coverage: Critical illness cover provides an additional shield of financial security by giving a lumpsum at the diagnosis of certain major diseases like heart disease, stroke, kidney failure, or cancer. With the rising medical expenses, such a payout serves to absorb the expensive treatments and long-term care without depleting the retirement corpus. Personal accident insurance remains applicable after retirement, particularly for travellers or those who lead an active life. It renders monetary compensation on account of accidental death or disability, preventing unexpected health decline from derailing long-term fiscal security.
New-Age insurance products have also made way to keep pace with evolving consumer needs. New-generation offerings like Unit Linked Insurance Plans (ULIPs) merge life cover with investment and hence are ideal for long-term wealth accumulation and providing life cover. Retirement-based annuity plans are also gaining popularity because they give an assured monthly income after retirement, and this serves to ensure the retirees have a constant cash flow and lifestyle. Some health-based insurance products now reward policyholders for healthy lifestyles, like routine checkups or exercising, with premium rebates or additional benefits. These innovations encourage preventive care and maximize the worth of the insurance coverage.
Effective Retirement Insurance Planning Tips
It is essential to plan ahead when planning for insurance. The earlier a policy is bought, the lower the premium and the wider the coverage. Insurance must be selected according to genuine requirements and not merely for tax savings. Inflation cover, or an increase in coverage over time, is especially useful for long-term financial planning. The policy conditions, exclusions, claim process, and conditions of renewal must be comprehended. It is also wise to review coverage regularly and involve family members in the planning process to ensure smooth decision-making during emergencies.
This Father’s Day, let us move beyond wishes and presents. Let us make our fathers feel secure, autonomous, and equipped for an anxiety-free tomorrow. Financial independence, after all, is one of the strongest demonstrations of love and appreciation we can provide.
It is authored by by Chetan Vasudeva, Senior Vice President – Business Development at Elephant.in
The views expressed in this article are those of the author and do not represent the stand of this publication.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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