Retirement planning involves preparing for expenses that may continue long after regular employment income stops. While investments can help build a retirement corpus, life insurance can provide financial protection for dependants and support broader financial planning. The role of life insurance can also change as a person moves from income-earning years towards retirement. A well-structured plan should consider protection, savings, healthcare needs, liquidity and long-term expenses together. This article explains how life insurance can fit into a retirement plan and the factors to consider when assessing its role.

Understanding the Role of Life Insurance in Retirement Planning

Life insurance primarily provides financial protection to nominees if the policyholder dies during the applicable coverage period. This can help protect a family from financial disruption while retirement savings continue to be built.