When asking what financial planning actually means, the first thought which comes to our mind is either saving money for retirement, planning for college or thinking of a few sources for retirement income. Which means that planning for our future years or saving money to accomplish our future goals is the major aspect of financial planning in our lives.
However, considering all of this, many people do not consider life insurance into a financial plan which helps in addressing specific needs like ensuring business continuity, if and when one is gone
Life insurance is basically paid to the nominee of a life insurance policy on the death of the person purchasing the policy. Whole life insurance may seem fairly and simply designed to provide help for one’s heirs when he or she is gone, it is believed that when used effectively, it can turn out as the most valuable component of one’s overall financial plan.Life insurance continues to be a nascent idea and most people don’t consider it until a serious life change causes them to think about what might happen to their loved ones just in case of any unforeseen circumstances. Amongst various people, the major objective for getting a life insurance policy is to shield oneself from unforeseen circumstances.But the other way of using life insurance as a component in financial planning would be buying a pure protection plan (a term plan) at an early stage which is most affordable or a unit linked plan at a later stage which provides the chance of earning higher returns, but involves market risk. There are specific education plans which make sure that your child’s education isn’t compromised just in case of an unfortunate situation and you’ll be able to also plan your retirement through pension plans.The major objective of adding Life insurance in financial planning is to secure family’s financial needs in your absence. Be it a child’s education or daughter’s marriage or planning for your retirement or loan repayment.An added benefit is that, It also helps you avail of varied tax benefits which makes it an excellent more attractive proposition.
Aishwarya Says:
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.
We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge