Four types of insurance plans retirees should consider
There are insurance covers that every retiree should consider for peaceful sunset years. Read the details.
Your insurance needs keep changing depending on your life stage. For example, the need for insurance cover is much higher when you are married and have children, compared to when you are young and have just started your career. Similarly, the insurance needs are going to be different for retired people. There are insurance covers that every retiree should consider for peaceful sunset years. Here are the details:
Health insurance: First and foremost one should have health insurance. This is because the chances of getting sick are more during old age compared to the time when you are young and healthy. It is important to have an adequate amount of sum insured so that medical emergencies are taken care of. It is advisable to buy a policy when you are young when premium rates are low and it is easier to buy a policy. One can also consider porting a group insurance policy at the time of retirement to an individual policy carrying forward the continuity benefits.
Home insurance: Home is one of the valuable possessions for any individual. It is advisable to buy a home insurance policy so that the structure of your house and its contents remain covered if it gets damaged due to any natural or manmade calamities. One needs to keep in mind that the home insurance only reimburses for the construction of the house and does not include the value of the land while calculating the sum insured.
Motor insurance: Even if you are not going to drive long-distance trips it is advisable to buy a motor insurance policy. The comprehensive insurance policy covers damages to both own car and third party. While the third-party cover is mandatory in India, comprehensive cover is voluntary.
Life insurance: The purpose of buying a life insurance policy is to provide financial support to the family in case of the demise of the insured person. After retirement, the dependents generally become self-sufficient and do not require further support. In that case, there is no need to buy a life insurance policy. But if your spouse and children are dependent even after your retirement, especially in the case of special needs children it makes sense to continue with your term insurance policy so that they get the necessary financial assistance if required.