Is life insurance a retirement planning tool?

  • Retirement Planning Articles

Planning for your retirement? Then ensure life insurance policies are included in your portfolio.

Planning for retirement is a crucial aspect of managing your finances. After all, you need to figure out how you will meet expenses when your income stops. Many investors make the mistake of focusing only on the share market or Fixed Deposits when they save for retirement. However, life insurance is also an important aspect when it comes to retirement planning.

Here is how life insurance plans help in your golden years:

  • First and foremost, you need a life insurance policy to protect your family from the financial implications of an unfortunate event. You have been taking care of your family until now. But who will pay for their expenses in case you are not around? Adequate insurance not only ensures that your goals are secure, but also enables your family to meet expenses in your absence.
  • When it comes to retirement planning, remember that you will need regular income to meet expenses when you retire. It is hence advisable to invest in life insurance plans that provide regular returns, such as money-back policies. These plans provide life cover as well as cash returns at periodic intervals, so you can get regular income even after you retire.
  • In addition, you can also consider various types of Unit Linked Insurance Plans (ULIPs), in which you can invest when you are younger. When you retire, you will get a lumpsum amount, which you can use to meet expenses. Most ULIPs now give you the flexibility of selecting the kind of investments you want to make, so that you can customize your plan according to your risk profile.

You need to select the right policy for your retirement objectives to be met. If you are unsure about the type of plan to choose, consult your insurance advisor, who can point you in the right direction.


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Retirement Plans

ABSLI Empower Pension Plan

This plan ensures that you remain in control of your destiny even during the second innings of life. UIN: 109L078V02

  • Guaranteed Additions
  • Financial protection for your family
  • Tax benefits1

ABSLI Empower Pension- SP Plan

A single premium plan that ensures you enjoy a much deserved comfortable retirement. UIN: 109L094V02

  • Guaranteed additions
  • Regular income
  • Vesting benefit as per plan option chosen

ABSLI Saral Pension

A single premium plan that provides guaranteed regular income for lifetime UIN: 109N130V01

  • Guaranteed regular income for life
  • No medical tests
  • Financial protection for your family

ABSLI Guaranteed Annuity Plus

This plan guaranteed income for life which enables you to enjoy a dream retirement life. (UIN: 109N132V02)

  • Guaranteed Lifelong income with a choice of multiple annuity options
  • Deferred Annuity option to build regular income stream for future with deferment period upto 15 years
  • Option to increase annuity through Top-up option

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