Insurance for retirement planning is a big area which is grossly unexploited till date inIndia.Worldwide it is one of the major reasons for which insurance is bought. Veryfew people realise that savings for retirement if started early can yield unbelieving results when compared to starting savings late in life. Considerthe following illustration :

There arequite a few reasons why the retirement segment has not been sufficiently exploited by Insurance professionals. Here are some of them :

• There are not many readymade products to choose from for retirement planning
• Pension Plans have become more difficult to sell because there is no yardstick to measure how much pension will one get on retirement if he starts saving today. Earlier, annuity rates were declared and hence agents could advise their customers accordingly. But now they can only determine the NCO by estimating the bonus rates
• Additionally the pension through pension products will be taxable. This element becomes one more obstacle for selling pension product
• Pension products generally do not have attrractive risk coverage built into them, during the deferment period.
• People have tendency to think about their present. There is a high perception amongst people that they will not live long enough to enjoy retired life.

But consider the following facts :

William Alexander is a Retirement Planning Specialist from LIC Of India and a star Agent of the branch who can be contacted by email on william@insuranceadvisorbangalore.com