Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Buy a term plan and secure your family
When you retire, your employer gives you an option to continue paying for your life insurance policy and keep it active or discontinue the same with your services if you do not need it. Usually, the life insurance policies provided by employers are expensive to continue after retirement. You can consider buying a new life insurance policy if you need insurance coverage depending upon your financial preferences.
In fact, you can start looking for the best life insurance policies from now and buy one keeping in mind your last working day at work. The reason behind this is you get lower interest rates at a young age. On the other hand, if you buy an insurance policy after retirement, you will be old and more prone to getting sick. Therefore, various life insurance companies in the UAE charge higher insurance rates at that point in age.
But before everything, you must first know if you need a life insurance policy after retirement. Keep reading to check how you can find out the same.
Life insurance policies help you protect your family’s financial future. It provides them with enough funds when you are no longer available to provide the same for them due to a disability or demise. If you have retired and are not facing any challenges in paying your bills and meeting your expenses, you may not need a life insurance policy. However, if you still need an additional monthly income, you can think of continuing your life insurance policy.
Here are a few things to help you understand if you need a life insurance policy after your retirement or not.
Most people reach their retirement debtless. But that is not the case with everyone. Some people take loans that get carried forward till their old age. These loans can be standalone or co-signed ones with their friends, children or other family members. You may continue your life insurance policy even after retirement if you have such debts or active loans.
Another thing that you need to consider is if you still have dependents to take care of. Most people send their children abroad for higher studies and it takes time for them to get settled and become financially independent. The other scenario is where some parents have children with special needs. If you are one of any of these parents with dependent children, you must keep a life insurance policy as future financial security for them.
Pension is one of the critical retirement benefits. Most people who have pensions do not need any other financial support in their older age. However, some people with a lot of responsibilities would still need an extra hand. So, if the pension is not enough to fulfil your financial requirements, you must consider buying a life insurance policy for your post-retirement days.
This is one of the most important factors that might affect your decision of whether to keep your life insurance policy active or not. If you have an additional source of income even after you have got retired, you can just let your life insurance policy lapse. On the other hand, if you do not have another source of income, you must consider continuing your life insurance policy so that you receive monthly pay-outs and meet all your financial requirements.
|You may also like this - How is Life Insurance Helpful After Retirement?|
As long as you can pay the premiums, it is worth getting a life insurance policy. All you need to do is adjust your financial expectations a little. Do not apply for a life insurance policy with a huge sum assured. Just go with the little one that takes care of your regular medical needs and provides a sum assured to pay for your funeral expenses and other small debts in case of your demise.
Make sure you go through the terms and conditions of the insurance policy before you pay your first premium. At this age, some insurance companies add some extra clauses with some additional charges. Save yourself from an unreasonably expensive deal.
To get the best deal, you can visit our website or contact our help and support representatives. They are expert advisors who analyze your financial requirements and suggest an insurance plan accordingly.