Retirement Insurance

Just having a Retirement Plan isn’t enough!

abhishek — Thu, 16 Sep 2021 06:30:00 GMT

Just having a Retirement Plan isn’t enough!

16-Sep-2021 16-Sep-2021'

Any endeavour that lasts as long as retirement planning does—20 to 40 years—faces the risk of weakening and reduction, no matter how confident you were when you first ventured into it. Retirement planning needs regular checks and balances to ensure your corpus is there for you when you need it most; that is, when your salary has stopped due to retirement.

To retire into a rich and independent second innings full of foreign travel and splurging on grandchildren, keep these 5 DON’Ts in mind when it comes to your retirement.

DON’T delay Retirement Planning

Research suggests that in India only 3 out of 10 people save regularly for their retirement. The rest delay it, thinking that they have a lot of time left or they will start investing when their salary increases. This is incorrect thinking. Delaying will directly result in you losing the benefits of saving early. Let’s see an example.

When 30-year-old Kishore invests Rs 3,000 in a retirement plan for 30 years, he receives a pay-out of Rs 44 lakhs. However, when 35-year-old Akshay invests Rs 3,000 in a retirement plan for 25 years, he receives a pay-out of only Rs 28 lakhs. This is a difference of Rs 16 lakhs because of starting merely 5 years later.

DON’T use funds meant for Retirement

One of the biggest mistakes of young or working Indians is that they start using their retirement funds like EPF, PPF, and FD for their emergency requirements or to fulfil their daily needs. Using up your retirement savings thinking you will fill it up later means digging your own grave during retirement.

DON’T save without a goal

Retirement planning is a goal-oriented exercise. Having an idea about how much you will spend every year in your retirement years will help you understand how much you need to invest and where you need to invest, keeping in mind factors like inflation, age, income, expenses, and financial dependencies on you.

DON’T underestimate growing medical expenses

This is again a common misconception in Indians. To fulfil today’s needs, we are ready to compromise on our future needs. Even if you have good health, you cannot avoid age-related health risks. Health emergencies can wash away all your finances, especially in your old age. Despite this, many people fail to buy adequate health insurance cover, which will protect them from rising medical costs in the present and especially the future.

NEVER rely solely on your children to fulfil your retirement needs

Parents being dependent on their children is a common scenario in almost every Indian household. As the child starts earning, parents start relying on their income. This is a serious and common mistake made by many. By not planning for your retirement now, you will financially and emotionally burden your children in the future.

It’s never too late to make things right! Fix your retirement planning mistakes NOW.

M – 86559-86559 | E – support@oneinsure.com

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Will your current retiral investments last for 25 years with no change in lifestyle & luxuries?

abhishek — Fri, 23 Jul 2021 06:30:00 GMT

Will your current retiral investments last for 25 years with no change in lifestyle & luxuries?

23-Jul-2021 23-Jul-2021'

abhishek

With life expectancy in India touching 80 – 85 years, retirement planning takes on a whole new meaning. While generations before us had to plan finances only until 70, the current generation has to plan finances for at least 20 – 25 years after retirement.

Let’s have a look at some quick (and scary) numbers:

When Mr. X retired in the year 2001, the retirement age was 60 years while life expectancy was averaged at 70. This means that Mr. X had only 10 years of non-earning life.
Early this year, when Mr. Y retired, retirement age stood at 60 again, while life expectancy for 2021 was averaged at 80 years, which is 10 years more than what it was 20 years ago. This leaves Mr. Y with 20 years of non-earning life. A little scary, right?
Twenty years from now (2041), when Mr. Z will retire, retirement age would still be 60 while life expectancy would be around 90 years. That would leave Mr. Z with 25 – 30 years of non-earning life. This is VERY scary.

Why worry about life expectancy?

When 60 was decided to be the retirement age, life expectancy for an Indian was 67 – 70 years. Retirement funds at 60 were enough for 7 – 10 years. However, in the last 10 – 15 years, medical advances have increased life expectancy to 80 years. Every 10 years, life expectancy increases by 5 years due to new medical technologies that are successful in extending life. Without proper financial planning, there will be no funds left to enjoy all of your retirement years in comfort.

Do you think your current retiral benefits and investments will be sufficient to sustain 20 – 25 years with the same lifestyle and luxuries you currently enjoy?

So, what’s the solution?

Planning for the first retirement at 60 is great, but planning for a second retirement at 70 – 75 is just as important. EPF and other investments will not sustain for 20 – 25 years, and being dependent on others (including children) during retirement is something to be avoided at all costs.

This is why it is necessary for one to create a safety net well in advance. There are several plans available in the market that allow you to start investing systematically for a fixed term and mature when you are close to 70. Let’s see some real-world examples (figures taken from leading plans):

Ramesh, who is 40, opts for a participating endowment plan and begins investing Rs 8,000 per month until he is 50. When he is 70, he receives close to Rs 40 lakhs at 8% RoI. Not only that, if he would have met an untimely death during the policy term, his family would receive close to Rs 8.5 lakhs as death cover.
Suresh, who is 45, chooses another participating savings plus protection plan and starts investing Rs 10,000 per month for a period of 18 years. When he is 75, he receives close to Rs 56 lakhs. Suresh’s nominees would receive approximately Rs 14.3 lakhs in case he meets an untimely end.

These instruments not only protect your retirement future but also assure your family is taken care of financially should anything untoward happen to you.

86559-86559 | support@oneinsure.com

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How to Choose the Right Retirement Plan

abhishek — Fri, 26 Mar 2021 06:30:00 GMT

How to Choose the Right Retirement Plan

26-Mar-2021 26-Mar-2021'

abhishek

As the reader already knows, retirement planning is one of the most important financial decisions one can take in one’s earning life.

Having said that, however, it is easy to lose track of what truly comprises a solid retirement plan and get distracted with too much planning and too little execution. In this brief piece, let’s see how just about anybody can easily plan for and choose the right retirement plan:

Distribute Savings

To have a stronger investment portfolio, you need to distribute your savings in different groups of investments like stocks, fixed deposits and gold. A balanced and appropriately distributed portfolio will not only yield higher growth but also spread the financial risk. This will save you from losing out all if one investment type performs badly. You must ensure that your asset mix is aligned to your investment time frame and financial needs.

Choose Vesting Age

Vesting age is basically the age from which you start getting returns on your investment/pension plan. So, if you wish to start getting an income on your retirement plan, say from the age 50, choose a plan where the vesting age is 50 years. Similarly, if you plan to retire late, then you may choose a plan with a higher vesting age.

Affordable Premiums

When choosing a retirement plan, another thing that you need to take care of is that the premiums are affordable. You shouldn’t opt for a plan whose premiums disturb your day-to-day expenses, thereby eventually making it tough for you to stick to your budget. Check the monthly (or yearly or whatever the case is) premium amount and on that basis, take a decision as to whether or not you can afford a particular premium amount.

Commitment

Choosing a retirement plan can be tough and sticking to it, tougher. But if you wish to achieve a desired goal then you need to stick to the plan that you’ve bought. Do not break into it before it matures. Watch it grow to eventually pay you out the money that you will need to fulfil your retirement dreams.

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Four To-do’s to Follow for a Comfortable Retirement

abhishek — Sat, 02 Jan 2021 06:30:00 GMT

Four To-do’s to Follow for a Comfortable Retirement

02-Jan-2021 02-Jan-2021'

abhishek

Retirement is a life-altering event that changes the way you live, your spending habits, the way you think about finances, the way you think others value you, and so on. Much and more is said about retirement, and financial managers will make you think it is some super-complicated endeavour that requires endless calculation and lots of toil. Nothing could be further from the truth, as we will see in this brief piece.

Having said that, though, without a solid retirement plan that you start in your 30s or 40s, you will most likely end up being a burden on your kids. So, to retire into a rich and independent second innings full of foreign travel and splurging on grandchildren, stop making the common mistakes most working Indians make and do something today that your future self will thank you for.

#1 – Plan early and retire in style!

This one point is the most crucial one for retirement planning, as you’ll see in the example below.

Studies show that retirement planning is never taken seriously, especially in India. Out of ten, only three people save regularly for their retirement in our country. The rest procrastinate, thinking that they have a lot of time left or they will start investing when their salary increases. This is the wrong attitude to have. Time runs quickly, and you will lose the benefits of saving early. Let’s see an example.

Example: When 30-year-old Sachin invests Rs 3,000 in a retirement plan for 30 years, he receives a pay-out of Rs 44 lakhs. However, when 35-year-old Bharat invests Rs 3,000 in a retirement plan for 25 years, he receives a pay-out of only Rs 28 lakhs. This is a difference of Rs 16 lakhs (44 – 28 = 16) because of starting merely 5 years later!

#2 – Save/invest with a goal

Having a tangible, achievable goal makes the effort of saving and investing worthwhile. Saving without a goal is meaningless because you are not focused that you need to save Rs XYZ for ABC goal. What might happen then is that you will end up building an inadequate corpus or use up your savings to meet other expenses. Having an idea about how much you will spend every year in your retirement years will help you understand how much you need to invest and where you need to invest, keeping in mind factors like inflation, age, income, expenses, and financial dependencies on you.

Take Home: Retirement planning is a goal-oriented exercise. Choose a retirement plan that is tough to exit from!

#3 – Don’t touch that fund!

It’s pretty common for people to tap into their retirement funds in case of a cash crunch. This is a big mistake, as this is equivalent to reducing years of vesting from your fund!

Take Home: Unless it’s a life and death situation, do not touch your retirement funds until you cross 60 years of age.

#4 – It’s NOT okay to rely solely on children for retirement expenses

Take Home: Plan your retirement and live a financially independent life in your sunset years.

To discuss retirement plans with an expert
M – 86559-86559 | E – support@oneinsure.com

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How to Fix Retirement Mistakes You Have Already Made

Shraddha Gala — Thu, 18 Jul 2019 07:07:00 GMT

How to Fix Retirement Mistakes You Have Already Made

18-Jul-2019 18-Jul-2019'

Shraddha Gala

“You are a burden on your kids!”

Would you like to hear these words at the age of 65? We are sure you wouldn’t. Retirement is a life-altering event that changes the way you live, your spending habits, the way you think about finances, the way you think others value you, and so on.

Without a solid retirement plan that you start in your 30s or 40s, you being a burden on your kids will be the least of your troubles. So, to retire into a rich and independent second innings full of foreign travel and splurging on grandchildren, stop making the mistakes listed in this piece and do something today that your future self will thank you for.

Mistake No 1: Procrastinating Retirement Planning

Research suggests that retirement planning is never taken seriously, especially in India. Out of ten, only three people save regularly for their retirement in our country. The rest procrastinate, thinking that they have a lot of time left or they will start investing when their salary increases. This is the wrong attitude to have. Time runs quickly, and you will lose the benefits of saving early. Let’s see an example.

Fix it: Invest Now! Set your savings account to auto-debit money monthly for retirement plans.

Mistake No 2: Using Funds Meant for Retirement

One of the biggest mistakes of young or working Indians is that they start using their retirement funds like EPF, PPF, and FD for their emergency requirements or fulfilling their daily needs. Using up your retirement savings thinking you will fill it up later means digging your own grave during retirement.

Fix it: Do not touch your retirement funds until you cross 65 years of age, come what may!

Mistake No 3: Saving Without a Goal

Saving without a goal is a meaningless exercise because you are not focused that you need to save XYZ amount of money for ABC goal; therefore, you may end up building an inadequate corpus or use your savings to meet your mandatory expenses. One needs to understand that retirement planning is a goal-oriented exercise. Having an idea about how much you will spend every year in your retirement years will help you understand how much you need to invest and where you need to invest, keeping in mind factors like inflation, age, income, expenses, and financial dependencies on you.

Fix it: Understand your needs and have a goal. Choose a retirement plan that is tough to exit from.

Mistake No 4: Underestimating Growing Medical Expenses

“I am fit and fine; I do not need high health coverage.”

Fix it: Buy a health insurance plan with proper coverage keeping in mind growing medical costs.

Mistake No 5: Relying on Your Children to Fulfil Your Retirement Needs

Fix it: Plan your retirement and live a financially independent life in your sunset years.

It’s never too late to make things right! Fix your retirement planning mistakes NOW.

M – 86559-86559 | E – support@oneinsure.com
Be Sure with OneInsure

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Turn Taxation Tension into Worry-Free Pension

Aditya Nair — Fri, 22 Feb 2019 06:59:00 GMT

Turn Taxation Tension into Worry-Free Pension

22-Feb-2019 22-Feb-2019'

Aditya Nair

What if we tell you there is a way to turn all your tax worries into regular pay-outs after retirement? What if we told you that you could get Rs 30,000 pension/month and up to Rs 52 lakhs for your family by saving just Rs 3,000/month?

Have a look at a couple of scenarios really quickly:

Scenario A

You retire at the age of 58 from your job. Your colleagues throw a great farewell party.
You are happy to finally be done with a corporate career! In celebration, you go on a vacation with your spouse.
A couple of months pass and you realize that without your monthly income coming in, your bank balance is not going to last very long.
Then your spouse falls ill and the doctors say she needs to be hospitalized. There goes Rs 50,000.
Every time you see an SMS from your bank, you can see your bank balance reducing. You are beginning to worry whether your savings are going to be enough for the next 10 – 15 years…

Scenario B

You retire at the age of 58 from your job. Your colleagues throw a great farewell party.
You are happy to finally be done with a corporate career! In celebration, you go on a vacation to Europe with your spouse.
When you return, you bring gifts for your grandkids and start a cooking course to help your spouse in the kitchen.
Every 1st of the month, you receive an SMS from your bank that tells you that your retirement plan’s monthly pay-out has been credited. You are grateful that you started a retirement plan in your thirties. This plan now works like an income replacement for you and your family.
With these monthly pay-outs, you can take care of all healthcare expenses, take up new hobbies, travel abroad without worrying about finances, and dote on your grandkids with regular gifts.

Retirement plans are the safety net of your sunset years. Many urban Indians in the corporate world wonder how much retirement corpus they must have. We have discussed the same with experts and put their findings in this article. You might also be interested in an article that goes into the concept of dual retirement, which is becoming increasingly popular these days.

How Do Retirement Plans Save Tax?

Retirement plan investments are Section 80(C) compliant. This means that you can claim tax exemptions up to Rs 1,50,000 when you invest in a retirement plan. Along with taking care of you and your family in your second innings, these plans ensure your hard-earned money is saved from the tax net too!

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How Much Bank Balance Should You Have on the Day of Your Retirement

Shraddha Gala — Thu, 17 Jan 2019 06:09:00 GMT

How Much Bank Balance Should You Have on the Day of Your Retirement

17-Jan-2019 17-Jan-2019'

Shraddha Gala

Your ideal bank balance will allow you to live a life of independence and all the amenities you need, which you deserve because you have given up your entire earning life for your family and for others. You deserve a few decades of peace and plenty.

But what IS the ideal sum you must have accumulated by the time you hang up your boots from professional life so that you can have a peaceful retired life?

Your ideal bank balance on the day you retire depends on your current age and annual income. The following stats have been derived by financial experts. Choose the right category for yourself and then read on:

If Your Annual Salary Is between 5 – 7 Lakhs

And current age is between 30 and 33 – Your ideal retirement bank balance is around Rs 1.2 crores

And current age is between 34 and 36 – Your ideal retirement bank balance is around Rs 1 crore

And current age is between 37 and 39 – Your ideal retirement bank balance is around Rs 80 lakhs

And current age is between 40 and 43 – Your ideal retirement bank balance is around Rs 70 lakhs

And current age is between 44 and 46 – Your ideal retirement bank balance is around Rs 55 lakhs

And current age is between 47 and 50 – Your ideal retirement bank balance is around Rs 40 lakhs

If Your Annual Salary Is between 8 – 10 Lakhs

And current age is between 30 and 33 – Your ideal retirement bank balance is around Rs 1.7 crores

And current age is between 34 and 36 – Your ideal retirement bank balance is around Rs 1.5 crores

And current age is between 37 and 39 – Your ideal retirement bank balance is around Rs 1.2 crores

And current age is between 40 and 43 – Your ideal retirement bank balance is around Rs 1 crore

And current age is between 44 and 46 – Your ideal retirement bank balance is around Rs 85 lakhs

And current age is between 47 and 50 – Your ideal retirement bank balance is around Rs 65 lakhs

If Your Annual Salary Is between 11 – 13 Lakhs

And current age is between 30 and 33 – Your ideal retirement bank balance is around Rs 2.2 crores

And current age is between 34 and 36 – Your ideal retirement bank balance is around Rs 1.9 crores

And current age is between 37 and 39 – Your ideal retirement bank balance is around Rs 1.6 crores

And current age is between 40 and 43 – Your ideal retirement bank balance is around Rs 1.2 crores

And current age is between 44 and 46 – Your ideal retirement bank balance is around Rs 1 crore

And current age is between 47 and 50 – Your ideal retirement bank balance is around Rs 80 lakhs

To know the logic behind these statistics, read here.

You now know how much your bank balance should be on the day of your retirement. Let’s now look at how to get there with small, affordable monthly investments that not only build a large corpus for your retirement but also help you save tax.

Why Is a Pension/Retirement Plan an Absolute Must in Your Portfolio

Investing in retirement plans is one of the most crucial decisions of your working life. Here’s why.

Continuity

Investments in gold, FDs, and mutual funds can be discontinued without a penalty. Due to this feature, it is very easy for people who have a financial crunch to either stop funding these investment tools or break into them. Contrarily, due to the unavailability of a discontinuing feature in retirement savings plans (without penalties), the habit of saving continues and you are invested for the entire duration agreed upon between the insurer and yourself. In a way, retirement plans do not allow you to move your eyes away from the larger goal.

Small Savings Turn into a Large Corpus

Mr. X invests Rs 6,000 in a retirement investment plan for 30 years. He receives a pay-out of Rs 90 lakhs (8% RoI). Presuming Mr. X earns close to Rs 40,000 per month, this is a mere 15% or so of his take-home salary. Also, his salary is only going to increase here on out, and the premium isn’t.

Note that if Mr. X begins investing at an even earlier age with smaller amounts, he will receive even higher pay-outs.

Flexibility of Three Retiral Benefit Options

With pension/retirement plans these days, you have three options to choose from as far as pay-outs are concerned:

Lump sum retiral benefits
Monthly pension
Combination of both

In Conclusion

Retirement plans ensure you have enough wealth for your retired life. These plans will allow you to travel the world with your spouse, buy gifts for your grandchildren, and engage in all those activities that you could not do due to your professional commitments. This is why retirement plans are a crucial aspect of the mature urban Indian’s financial portfolio. Needless to mention, retirement plans being insurance products, they provide the following additional benefits:

Tax benefits on premiums paid under Section 80(C)
Significant death cover that is paid to your family in case you meet an untimely demise; this sum ensures your family's dreams and aspirations are not put on hold and they continue with the same lifestyle

Loved this article? Want to read more? All you need to do is send “Start” through WhatsApp on 98202-25238 to get useful articles right on your WhatsApp for free. Here are some additional services we offer:

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How Much Money Is Enough Money for Retirement?

Mariya Panwala — Fri, 09 Nov 2018 11:13:00 GMT

How Much Money Is Enough Money for Retirement?

09-Nov-2018 09-Nov-2018'

Mariya Panwala

Frankly, you can’t apply the one-size-fits-all approach to determine the amount of money that is required to lead a peaceful retired life. People have varying spending habits and their financial responsibilities at the time of their retirements are also very different. However, there is a way to determine the amount of money that an average Indian individual needs to enjoy his/her golden years with financial ease.

Number of Years of Retirement

At some point of time in history, 60 was decided to be the retirement age in India. Also, at that time, the life expectancy for both males and females was much lower than what it is today. Today, with technological and medical advances, the average life expectancy of an urban Indian male is close to 77 and that of an urban female is 79. This is just the average – many touch their mid-80s. However, the current retirement age in India is 58 years (60 years in the case of government employees) and has not increased with the increasing life expectancy. And nor is it expected to rise.

So, the average life expectancy has improved but the retirement age is still the same. This means that the number of years that one spends post his/her retirement until s/he expires is more than what it was earlier. Naturally, the number of years for which you need to plan your retirement today is more than what it used to be earlier. If people lived for 7 – 10 years post their retirement a couple of decades back, today they live for 22 – 25 years after they have hung up their boots.

This tells us that we need to plan for close to 25 years of retired life. What could be the best investment tool to do this planning? Gold? Real Estate? SIP?? While these are some of the more popular investment options, you cannot completely depend on them as their value can fall and rise anytime. However, if you’re planning to have a financially-peaceful retirement, you could consider taking professional insurance assistance.

To start with, let's first understand that today you are both earning and spending, while after retirement, your income will cease but the expenses won’t. Post-retirement, your expenses range from health and home maintenance to travel and hospital bills.

Now, let’s say you’re a 35-year old individual whose annual income is 12 lakhs. Assuming your income will increase as you age, and you and your family will maintain the same lifestyle, the average amount of the expenses that you’re likely to incur up until your retirement age (assuming 60), is Rs 4 crores for a period of 25 years (60 minus 35).

Do you find this figure too high? If you do, it is a good indication that you have never seriously calculated your long-term expenditures. For example, a single month’s housing loan EMI for a 2BHK home in the city is close to Rs 30,000. Let’s calculate the total expenditure if the term is 20 years.

30,000 X 12 months = Rs 3,60,000

3,60,000 X 20 years = Rs 72,00,000

This is Rs 72 lakhs leaving your pocket. Now Rs 4 crores will not seem such a large figure.

Now, after retirement, to live comfortably, research has shown that the average Indian will spend at least half the total money s/he spent while earning. In this example, that figure is Rs 2 crores.

And now the question arises: how do I save enough to ensure that I get Rs 2 crores after retirement?

This is where insurance experts such as OneInsure come in. Powered by Robinhood Insurance Broker, OneInsure is engaged in providing valuable insurance-related services including helping people plan their retirement for over a decade now.

To take an informed decision when it comes to retirement plans. To get the best retirement solutions, contact OneInsure via email at support@oneinsure.com or via a call at 86559-86559.

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Dual Retirement – Your One and Only Safety Net after 60

Mariya Panwala — Thu, 04 Oct 2018 13:56:00 GMT

Dual Retirement – Your One and Only Safety Net after 60

04-Oct-2018 04-Oct-2018'

Mariya Panwala

Let’s have a look at some quick (and scary) numbers:

When Mr. X retired in the year 1998, the retirement age at that time was 60 years while the life expectancy was averaged at 70 years. This means that Mr. X had only 10 years of non-earning life.
Early this year (2018), when Mr. Y retired, the retirement age stood at 60 again, while the life expectancy for this year has been averaged at 80 years, which is 10 years more than what it was 20 years back. This leaves Mr. Y with 20 years of non-earning life. A little scary, right?
Twenty years from now (2038), when Mr. Z will retire, the retirement age would probably still be stuck at 60 years while life expectancy would be somewhere around 90 years. And that would leave Mr. Z with 25 – 30 years of non-earning life. This is VERY scary. Not for all, though; it's scary only for those who haven’t started planning for their retirement.

Why Should I Worry about Life Expectancy?

When 60 was decided to be the retirement age, life expectancy for an Indian was 67 – 70 years. Retirement funds at 60 were enough for 7 – 10 years. However, in the last 10 – 15 years, technological and medical advances in India have increased life expectancy to close to 80 years. Every 10 years, life expectancy increases by 5 years due to new medical technologies that are successful in extending life. Without proper financial planning, there will be no funds left to enjoy all of your retirement years in comfort.

Do you think your current retiral benefits and investments will be sufficient to sustain 20 – 25 years with the same lifestyle and luxuries you currently enjoy?

So, What’s the Solution?

Ramesh, who is 40, opts for a participating endowment plan and begins investing Rs 8,000 per month until he is 50. When he is 70, he receives INR 39,87,272 at 8% RoI. Not only that, if he would have met an untimely death during the policy term, his family would receive INR 8,39,179 as death cover.
Suresh, who is 45, chooses another participating savings plus protection plan and starts investing Rs 10,000 per month for a period of 18 years. When he is 75, he receives INR 55,92,847. Suresh’s nominees would receive INR 14,26,200 in case he meets an untimely end.

These instruments not only protect your retirement future but also assure your family is taken care of financially should anything untoward happen to you.

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Tips For Choosing The Right Retirement Plan

Mariya Panwala — Fri, 16 Mar 2018 11:36:00 GMT

Tips For Choosing The Right Retirement Plan

16-Mar-2018 16-Mar-2018'

Mariya Panwala

“Do something today that your future self will thank you for.”

-Sean Patrick Flanery

How do you know which is the right retirement plan for you? You may choose the best available retirement plan in the market. But what if the best does not match your requirement and affordability? Will it be any good? Of course not!

If a recent report of a leading online news portal is to be believed, 47% of the working population in India, have either not started saving at all or have stopped saving due to difficulties. And how do these difficulties arise? Due to lack of proper planning! The same report also confirmed that a considerably less percentage of the people consult professionals for retirement planning. Most of the times, it is the family and friends that they consult for the same. Although family and friends can be great advisors but when it comes to long-term financial planning, you need to consult financial experts. Particularly, if you’re looking to invest in a long-term insurance plan like retirement, then an expert’s suggestions must be sought. Therefore, in this article, in consultation with experts at OneInsure, we have compiled some tips in choosing the right retirement plan. Read on further to know them.

1. Distribute your savings

2. Invest in stocks

Investment in stocks promise potentially higher returns, hence, they must be a part of your investment portfolio. Some financial experts recommend that you allocate your funds in stocks, especially when you are looking for long term investments. Hence, allocate your savings wisely on the basis of the retirement goal you wish to achieve. However, one must bear in mind that investment in stocks come with higher risk. So, take a decision wisely.

3. Choose your Vesting Age

4. Affordable Premiums

5. Commitment

“No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.” – Suze Orman

Read here to know how to be your own retirement planning advisor.

To conclude, it is best to start your retirement planning as early as possible to ensure you achieve your desired goals. While identifying the right retirement plan to secure your financial future can be difficult, with the help of the above mentioned tips and a financial expert by your side, it is possible to make this easy. Our experts at OneInsure not only help their clients in taking decisions like these but also ensure that they have a hassle-free post purchase experience. OneInsure’s customer support team works round the clock to provide all insurance related services including claim assistance, without any charges. In case you need any insurance advice, know that we will be available at just a call away. You can reach us at 86559 86559 or drop an email at support@oneinsure.com for any query or assistance.

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Be Your Own Retirement Planning Advisor

Mariya Panwala — Wed, 27 Sep 2017 10:10:00 GMT

Be Your Own Retirement Planning Advisor

27-Sep-2017 27-Sep-2017'

Mariya Panwala

When should I start planning for my retirement?

How do I plan for my retirement?

When asked about retirement planning, people usually end up asking these questions. In this piece, you will find answers to such questions.

The right time for you to start planning for your retirement is as soon as you start earning. Yes, you read that right. Here are the reasons why experts suggest that retirement planning should commence the day you start earning.

A little corpus today, significant wealth tomorrow
Medical expenses become frequent with growing age
The older you get, the more the financial obligations you have
Inflation

Over and above these, you’re not sure who can come to your rescue in times of financial crisis. Maybe the one you’re counting on is counting on you. Why depend on anyone else? Rather, take the reins in your own hands and get started with smart investments.

We understand financial or retirement planning could be a complicated task and you may be tempted to rely on others. Probably you would want to hire a financial advisor who would give you some tips to manage your own funds by charging a hefty amount.

Instead, you can be your own retirement planner. Here is a step-by-step guide to help you plan for your retirement.

Plan Today

To yield desired results tomorrow, you need to sketch out a plan today. The plan should incorporate all the necessary elements, changes, and should be feasible to fulfill your future goals. For example, you can revise your annual savings and investment plans in accordance with rising expenses, which are affected by inflation rates (among other things) so that your final corpus reaches a figure that will be adequate to meet your future expenses.

List Down Your Goals

List down the things you wish to do or achieve post-retirement. You may want to:

Maintain your current standard of living
Take care of the medical expenses all by yourself
Fund your children’s wedding
Go on a long tour with your partner or family
Buy property or maybe a sea-facing home

Calculate the Corpus Required

Once you’re done with enlisting the desired goals, calculate how much money you’ll need to achieve your goals. A beach-front property today costs a couple of crores in a metropolitan city and over half a crore in a non-metropolitan city. These costs will inevitably rise by the time you retire. Likewise, travel and medical expenses are also sure to go up. Consider all these aspects and calculate your desired corpus.

Start Saving Start Investing

Savings are a traditional method that may not adequately help in producing the desired corpus. Take a smart(er) decision and start investing. Do some research, scan through retirement plans online, make a comparison, and select the plan that suits your needs. Consider the following factors to determine the total coverage amount you would require:

Your Current Age – Your current age would determine the number of years you have to invest. Say, you’re 31 and you wish to retire at 55. So, you have 24 more years to invest.
Your Current Annual Income and Expenses – Your current annual income and the expenses will determine how much you can invest. Say your annual income is 10 lakhs and the total annual expense is 7 lakhs. Hence, you have 3 lakhs to invest annually.
Outstanding Loans – Bought a car or availed an education loan? Your outstanding loans will have to be paid even when your income ceases. So, make sure you have adequate coverage amount to pay off your pending loans.
Major Cash Outgo – You may want to buy property or a sea-facing house or you may have humble business plans post your retirement or you may want to organize a grand wedding for your child. Events like these would require a lot of money. So, take them into consideration to determine the desired coverage amount.

Post-purchase Tips

Once you’ve chosen a perfect retirement plan, invest in it religiously and watch it grow. Having said that, purchasing a retirement plan is tough, but sticking with it can be tougher. But, you have to be discliplined and not let small hindrances affect your long-term investment plans. Follow these tips and save yourself from making mistakes that could ruin your long-term investments.

Income – Necessary Expenses = Premium Amount

Out of excitement for a higher corpus, do not opt for a plan that requires higher premiums. If you take up a plan with a very high premium, you might not be able to meet your basic expenses. So, before opting for any plan, you also need to take into account your disposable income. Ideally, deduct the necessary expenses from your regular income and the remainder will be the amount out of which you can make regular premium payments.

Pay Your Premiums Without Fail

Never forget to pay your premiums. Long-term financial fitness can be achieved only by taking short-term financial actions – by paying premiums regularly. Remember that it’s a seed that you need to water uninterruptedly for it to yield fruits when you’re most hungry. So, if you stop watering it, it will eventually dry out and would give back nothing for all the efforts you have put in it earlier.

DO NOT Break into Your Corpus before Maturity

“No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.”

– Suze Orman

At times, you may be tempted to break into your corpus before maturity. Abstain yourself from doing that unless it is an emergency.

Successful financial advisers have been suggesting their clients keep a number of insurance policies to meet sudden financial needs. Health, personal accident, travel, and critical illness plans turn out to be rescuers in times of unforeseen eventualities. Not only are their premiums affordable, but they also protect you from being forced to break into your growing corpus.

The Final Verdict

Retirement planning is indeed a difficult task and no one else but you would understand your needs better. In addition, due to an increased life expectancy, the number of years post retirement till death has significantly increased. This has added to the reasons why retirement planning has become essential in the modern world. So, do not procrastinate and start investing for your retirement.

For assistance in comparing or selecting the most appropriate retirement plan, call on 86559 86559 or write at support@oneinsure.com.

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How To Plan For Retirement

Joan — Thu, 21 Sep 2017 13:47:00 GMT

How To Plan For Retirement

21-Sep-2017 21-Sep-2017'

Joan

Retirement planning deals with planning and managing your finances in such a way that even after retirement you are able to lead a comfortable lifestyle. It involves identifying various sources of income, estimating what expenses will arise, creating a savings program and accordingly managing your assets. In other words, retirement planning involves analyzing your financial goals and then developing a retirement roadmap.

As you plan for retirement, here are a few points to keep in mind:

Regular source of income - After you retire, you will no longer receive a regular flow of income. This is where annuity plans come into play. Consider investing in annuity plans of insurance companies as they provide regular income after retirement or from when you choose to receive it.
Financial security for your loved ones in your absence - Having a life insurance cover is a must in this day and age. When you have a life cover, you can be rest assured that the payout will take care of your family’s expenses in your absence. It can be used to repay any pending debts, pay your child’s school or college fees etc. Another advantage of a life cover is that if you outlive the policy term, you stand to receive the maturity benefits (applies to certain kinds of life insurance products).
Your investment should beat inflation - An important factor you need to consider while planning for retirement is inflation - your investment should beat inflation as over the time inflation will eat into the value of your money. Hence, you need to ensure that your retirement plan will generate real returns i.e. returns adjusted as per inflation.

These are various retirement products in the market you can consider investing in. The best time to start saving for your retirement would be a year or two after you’ve landed your first job. In case you have not started, now is the best time. Contact us or install our app to get the right information & services just when you need it.

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What Is an Annuity?

Joan — Fri, 11 Aug 2017 06:50:00 GMT

What Is an Annuity?

11-Aug-2017 11-Aug-2017'

Joan

Annuities play an important role in retirement planning.

If you are at a stage where you’re building an income strategy for retirement, then it is highly recommended that you give annuities a serious thought. Annuities are a means of building savings for retirement. Some even provide income for your heirs after your demise.

An annuity is a long-term contract between you and an insurance company whereby you make an investment and in exchange, the insurance provider generates regular income payments for you in retirement. The income you receive can be on a monthly, quarterly, annually, or lump sum basis.

What Are the Different Kinds of Annuities?

Deferred Annuity - The annuity payments start after a certain period of time. Usually, the insurance company collects regular payments till the individual reaches a certain age, but some plans allow single premium payment as well.

There are two phases in deferred annuity:

Accumulation Phase	Pay-out Phase
In the accumulation phase, payments are made to the insurance company to build the annuity value. The money that you have invested earns interest during this phase.	In the pay-out phase, the insurance company begins to pay the benefits in the form of pensions. There are several payment options you can choose from, like the fixed amount option, life-only option, and joint and survivor life option.

Who Should Buy Deferred Annuity?

If you’re still years away from your retirement and want to ensure you get a fixed income every month on retirement, you should consider getting a deferred annuity.

Immediate Annuity - In the case of an immediate annuity, you start receiving the annuity payments right after you make the initial payment. The premium for immediate annuities should be paid in a lump sum. If you receive a considerable pay-out from an insurance policy or sale of property, you can invest the money to build an immediate annuity, which will provide you with regular income payments for the rest of your life.

Who Should Buy an Immediate Annuity?

Such plans are most suitable for retirees who feel like they are likely to outlive their savings.

Advantages of Annuities

There are several benefits to investing in an annuity plan. Here’s a look at a few:

Guaranteed Pay-out - You can rest assured that you will receive the agreed-upon amount until the event of demise. You can also have peace of mind knowing that the benefits you receive will last you your whole life.

Tax Benefits - The funds that you invest in an annuity plan are exempted from tax.

Financial Goals - Annuity plans can be used to meet other financial goals. You can leave a gift to a charity, provide financial security for your dependents, and so on.

In conclusion, availing an annuity plan is a means to retire with confidence. If it is part of a well-structured retirement plan, annuities can be a good investment.

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Lack of Social Security and Pension System in India

Wed, 03 Jun 2015 12:49:00 GMT

If you are reading this article, then you are probably among the 90 % new age Indians who have absolutely no retirement support called Pension.