A Goal Without A Plan Is Just A Wish”-
Antoine de Saint-Exupéry
We set goals all the time. For instance:
losing 10 kilos, eating healthy, running a marathon, writing a book and so
forth. But financial goals, which are the
most life-changing goals of all, are often put on the back burner.
Accumulating funds for children’s
education, building a multi million-dollar investment portfolio or starting a business
can all seem a bit too hard. But it doesn’t have
to be that way. With the right
financial instruments, plans can be put into place, and everlasting happiness can
be attained!
Here are two such investments that can help achieve your family’s financial
goals:
1. Term Insurance: To Meet the financial Goals in Your Absence
What is Term Insurance?
A type of life insurance plan,
term insurance protects your loved ones financially by providing an assured lump
sum amount, which acts as a replacement income in your absence. This amount not
only assists your family to pay for household expenses and outstanding debts
but also enables them to meet goals like fulfilling your child’s educational
aspirations or starting their business.
How Does Term Insurance Benefit Your Loved Ones?
The primary benefit of term
insurance is that it takes care of your loved ones in your absence. Your
absence can never be compensated with money;
however, your family may be dependent on your earnings. After your demise, they
will not only suffer emotionally but also financially. Term insurance can
assist them financially in such hard times.
How Can Term Insurance Help Fulfill Your Family’s Financial Goals?
If you hope to provide the best
education to your children, save for their marriage and ensure a peaceful
retired life for your better half, term insurance plans can take care of these desires in your absence.
Term insurance plans assure you
that the financial side of things will be taken
care of even if something untoward happens to you. For instance, if your
family receives the death benefit worth Rs. 1 crore after your demise, a part
of the amount (10 to 15 lakhs or as required) can be used for higher education
of your child.
If you want to make your term
plan more comprehensive, look for adding riders like ‘Critical Illness Rider’
and ‘Accidental Death and Disability Benefit Rider’ which are provided by
reputed insurers like Max Life Insurance.
2. ULIPs: To Finance Your Children's education
As parents, your children are
usually at the center of your financial
decisions. For them, you dream of education in a prestigious university or sending
them abroad for higher studies. For this purpose, you would want to look for an
investment product that gives you decent returns over the long-term along with a
safety net of life cover.
A Unit-Linked Insurance Plan
(ULIP) can work well in this context. ULIPs offer you the
benefit of life cover along with savings in the long run. They are the ideal
investment instruments, especially for those who are ready to commit to a
long-term wealth creation plan. Moreover, you get the option to invest in different types of funds as per your risk appetite
(equity, balanced and debt funds).
A well planned ULIP policy can be
a timely support to meet certain important expenses in your life. For example,
if you start a 15-year-long ULIP policy
when your child is one year old, it will mature around the time when your child
is planning to go for higher education. Thus, allowing your child to receive
the best possible education.
Simply
put, a well-timed ULIP policy can be a big help in meeting crucial expenses such as studying abroad,
planning a wedding, buying a house or starting a business.
Review & Revise:
Investing for your family’s financial
goal is not a one-time exercise. To be on top of
your game, it’s crucial that you
evaluate the progress made by your investments every year. Doing a yearly review will help you understand how
your investments are faring, and
if required you could restructure your plan.
Bottom Line:
So, whatever your family’s financial
goals are, now you have a road-map on how
to achieve them. Although making investments now may sound a bit heavy on your
pockets, but you will deserve your reward when you get there: the dream home you have been saving up for or the best quality education
you desire for your child.
You just have to make the right investments and
stick to them!
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