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Why insurance matters in the age of longevity

Across the world, people are living longer than ever before. Advances in healthcare, better living conditions and greater awareness of wellness have extended life expectancy well into the 80s in many countries. While this is a triumph of human development, it also presents new financial and social challenges, especially when it comes to retirement and insurance. Countries like France, Germany and Denmark have already raised their retirement age in response to these demographic shifts. In France, for example, the government recently raised the retirement age from 62 to 64, sparking national debate. Germany is moving toward 67, and Denmark is set to have the highest retirement age in Europe after its parliament adopted a law raising it to 70 by 2040. These changes reflect a simple but urgent reality – the old model of working for 30-35 years and then living another 30 years in retirement is financially unsustainable without proper planning. What does this mean for you? In TT today, people are living longer than ever before, thanks to advances in healthcare, nutrition and public health. Life expectancy in TT now averages 76 years – and that number is steadily rising. While our lifespans are increasing, however, our financial plans have not caught up, creating a serious concern. We must now plan not just for retirement, but for long retirements, ensuring we don’t become financially dependent on our children or the state. Insurance, thus, plays a critical role in this preparation. Insurance as a long-term safety net: 1. Life insurance is not just about protecting your family when you die. With more people living longer, many are concerned about not being a financial burden on their children. Life insurance, thus, provides an efficient way to pass on wealth – even if you spend all your savings during your lifetime. 2. Annuities provide a steady stream of income during retirement, offering the peace of mind that comes with knowing you won’t outlive your money. [caption id="attachment_1167027" align="alignnone" width="910"] -[/caption] Some policies also provide tax benefits that allow you to save during your lifetime. 3. Health insurance and critical illness coverage become increasingly important with age, as longer life often means a higher likelihood of chronic illnesses and unexpected medical expenses. The right policy, therefore, protects you from the devastating financial burden that can come with these situations. A call to action Many of our elders worked hard all their lives but did not plan for longevity, simply because their parents and grandparents did not live that long. We, however, now have data, examples and the tools to do better. As an insurance professional, I urge families to think seriously about the future. Have the conversations and ask your insurer hard questions. Do not wait for the retirement age to be raised here – act as though it already has and plan accordingly. Long life is a blessing – but only if it is matched with long-term financial security.   The post Why insurance matters in the age of longevity appeared first on Trinidad and Tobago Newsday.