Term insurance is the simplest and cheapest form of life insurance that provides financial protection to your dependants in your absence. However, with the average life expectancy of Indians estimated at 68 years(1), early retirement planning can help you replace the loss of income after the age of 60 or even when you decide to retire early in life.

In the light of rising healthcare costs coupled with an increase in the cost of living, you would require a steady supply of finances to maintain your standard of living even after you have stopped earning. A retirement plan helps you to have a financial cushion so that you can retire comfortably and do not have to depend upon anyone for your day-to-day needs while you are alive. Here are a few other reasons to consider:

• Build a retirement corpus: Buying term insurance early in life can get you lower premiums as well as the peace of mind that your spouse and children can be financially independent even when you are not there. However, a term plan cannot provide regular income in the non-working years of your life. The earlier you start planning for your retirement, the more you can benefit from the power of compounding as you will be invested in the retirement plan for a longer duration. This means that you would have accumulated enough wealth once you retire to ensure that you have sufficient money to spend on your essential needs as a senior citizen
• Take care of unforeseen expenses: In 2019, healthcare inflation in India rose at double the rate of retail inflation (2). If this trend continues further, it means that hospital services, cost of medicines, caregivers’ fees and consultation charges of doctors would only increase in the coming years. Add the increasing incidence of diseases such as diabetes, cancer, stroke etc among the Indian population to this mix and you will realise that an unexpected diagnosis of a life threatening disorder can leave you in a financial crisis. Prudent retirement planning can come to your rescue by providing a safety net to help you ride smoothly even in such trying times.
• Protect your assets: If you haven’t given a thought to saving enough once you are out of active working life, an emergency situation such as a hospital admission due to an accident or sudden diagnosis of a medical condition that requires immediate hospitalisation can become a financial burden, especially if your spouse needs to shoulder that responsibility. It might force you to liquidate your assets such as selling a property or any other valuable asset, eroding your legacy. With a retirement plan in place, you can safeguard your capital and be prepared to sail through any crisis without being affected by the dearth of money.
• Enjoy benefits as your wealth grows: Apart from saving tax on premiums paid for your retirement plan, you can also choose from various asset classes that you would like exposure to as per your risk taking ability. Your money will multiply as per your strategy of fund choices be it debt, equity or balanced. Not only this, you are also offered various options of death benefits, payment options, life insurance and maturity benefits to help you customise your retirement planning. Not only this, you can also make withdrawals to fund your immediate financial needs and switch flexibly between various funds to benefit from market movements.

A case in point is the Invest 4G plan from Canara HSBC Life Insurance that lets your hard-earned savings grow to ensure a comfortable retirement through 4 portfolio strategies and a choice of 7 different funds to cater to different risk appetites. Guaranteed loyalty additions and wealth boosters further sweeten the deal and give you more value for your money as a reward for being invested for a longer horizon.

So inculcate a plan for your retirement in your financial portfolio so that you can take care of the needs of you and your family without facing any financial crunch in the sunset years of your life. The earlier you take the first step, the more comfortable would be as a retiree with peace of mind to lead a happier and fulfilled life!