You might have invested in insurance and mutual funds and secured your finances. If you have planned everything right, you are likely to end up with some money after retirement too. What should you do with it? Should you invest it somewhere? Should you purchase an insurance plan? Here is why senior citizen must opt for an insurance policy.
Where to invest?
Health insurance and critical illness insurance
Health insurance is a necessity. It helps you with your medical expenses when you fall ill. With age, you are more susceptible to medical issues. A health insurance plan makes sure that you are financially cushioned if you fall sick. You can also consider purchasing critical illness insurance to act as an accessory for your health insurance. The plan will provide extended cover for diseases which are not covered under health insurance. It gives a lump-sum payout in case if you fall ill. This can help you with your medical treatment. It can also help your family meet other expenses and meeting other responsibilities.
Life insurance policy
It is never too late to invest in a life insurance plan. It helps you take care of your family in your absence. Here is why you should consider purchasing a life insurance plan-
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If you have outstanding debts
A person takes many loans in his or her lifetime to meet both long term and short term goals like buying a house or a car, for the education and marriage of their children, and so on. So if you have any unpaid dues like these, you need to consider purchasing a life insurance plan to protect your dependents from the financial stress of your outstanding debts in case of your untimely demise. In case of your death, the insurance policy for senior citizens pays out a death benefit which they can use to pay off the remaining debt.
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You have dependents
If you have people dependent on you, then consider purchasing a senior citizen life insurance policy. If your partner is a homemaker, or you have senior parents to take care of, you need insurance. Also, if you have young children who still need your support until they become financially independent, then you must consider purchasing a life insurance policy to secure their future.
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To leave behind a legacy
If you want to leave behind a legacy or something for your family, you must consider purchasing a life insurance policy for senior citizens. In case of your demise, the policy awards your nominees with a death benefit, which can help them meet their expenses and help them achieve their own life goals along with meeting their responsibilities. This will also be a great help in setting up their life.
Remember to analyse your goals, and the financial resources need to meet them when shopping for plans. The best insurance for a senior citizen does not cause any financial stress on your retirement savings. Also, remember to carefully go through the terms and conditions for anything that can be detrimental to your planning.