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Should one create a retirement corpus or buy term insurance after accumulating sufficient money?

Make sure that there is no other goal that can lay claim to this money, advises Dhirendra Kumar

Somebody has made sufficient investments in mutual funds to support necessary monthly income with a withdrawal rate of 5-6 per cent. Is it still necessary for the person to create a retirement corpus or have term insurance?
- Akhil

You should have term insurance until you have sufficient money which can support your family in case you are not around. Term insurance should be considered as a necessary expense of buying protection for your family. Nothing more and nothing less! If you have been able to build that necessary net worth which can support your family, you don't need the term plan.

Now, coming to your other question related to the need for retirement corpus. Make sure that there is no other expense that can claim this money. If you have other goals, keep it separately. But if this money can be clearly earmarked for your retirement and you are unlikely to consume it for any other purpose, and a 5-6 annual withdrawal is sufficient for your expenses, then this is your retirement fund.

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