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If you are someone who is thinking of investing in a Life Insurance Policy to add on to your retirement savings then you must consider a few things before that. It is important to understand whether such a cover will at all be of any substantial value addition to your post retirement savings or not.
Firstly as soon as you seek expert advice, there might be chances that you will be flooded with mixed advice. Most of them will ask you to refrain from investing in a policy cover. According to them, it is mainly provided by people who are at the peak of their earnings willing to ensure that their families do not have to face financial hardships in case they die. So according to them it would be useless to invest in something like this when you already have reached your stage of retirement and do not have a large family to take care of apart from your spouse.
On the other hand, there will be others who will opine that it would be better if you invest in a Life Insurance Cover in case you have an estate that is subject to estate tax.
Whatever the expert opinions are, the decision to invest in such a scheme, lies with you. Here are certain questions that you must ask yourself before availing the benefits of the Life Cover:
Are you someone who has received substantial death in service benefits of your spouse?
If you are someone who has had the misfortune of loosing your spouse while he or she was still in service, and are entitled to considerable death in service benefits from the company you need not invest further in a Life Insurance in your retirement— these benefits are high enough to see you through your troubled days in case your children are grown up and you have nobody to look after
Are your premiums going to be costlier than usual just as you are older?
Yes as you age, the premiums of the Life Policy will increase. For instance if you are 70 years old and are thinking of buying a level term insurance you will be charged double of what you would have paid in the age of 40.
Do you have anyone to look after even after your retirement?
If yes, then you can think of taking a Life Insurance Policy
Are you thinking of buying an insurance with the pension funds you have received, keeping your spouse as a nominee?
If yes then please remember that the road ahead is going to be very complicated. You have to calculate the total amount of pension that you are supposed to receive and substitute it accordingly with your life insurance policy— yes it is going to be that costly. In case you fail to pay the premiums regularly then both your Life Insurance and Premiums are gone.
Author Bio: Alan Starc has been passionately writing about informative insurance articles for quite some now. Relevant Life Policy is something about life insurance that he has been writing about in recent times.
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