Marriage is a life-changing decision, and even life-altering at times, for every individual, and one of the best ways you can prepare yourself for this new chapter is by planning your finances ahead of time. While saving and investing are very important aspects of financial planning, you must remember to give equal importance to a term insurance policy that will cover you and secure your family in the future as well.
The key to creating a sound financial plan is to start early, as an early start equals better benefits in the long run for you and your family. Here is the checklist that will help you get your ducks in a row and start your planning early:
- Create Goals
Be it spending on your wedding, applying for a home loan, or getting started on an expense fund for your children, it is important to have goals. You can then categorize these goals as either short-term or long-term and plan your investments to suit these expenditures accordingly.
- Manage Your Expenses Right
Before you jump to make investments and create a portfolio, it is important that you know about your impending expenditures. For example, paying off your credit card bills or creating a plan to automate your home or car loan EMIs is more important and should be taken care of.
- Plan For Your Child’s Future
You may think it is too early to start saving for your child’s future expenses when you are about to get married or have recently tied the knot. However, the earlier you think about these expenses and start investing, the better it is for your investment because it gets enough time to grow with the market.
You can also look at separate mutual fund plans that specialise in helping you save towards goals like your children’s education, marriage, etc. Another aspect of planning for your children’s future is ensuring that you add them as a beneficiary in your term insurance policy, as the best term plan will ensure that your children are financially secured even in your absence.
- Invest Wisely
From mutual funds that have low to medium to high-risk appetite to invest in Government bonds and schemes, your options for investment are many. Consult a financial advisor or a portfolio manager to help you navigate through all your options and create a diversified portfolio that will help you achieve your life goals at ease.
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If you are about to get married and start a family of your own, one of the most important things for you to know is what is term insurance and how it can secure you and your family members. If you are wondering how or why an insurance policy is so trivial to your family planning, then here are a few benefits of the best term insurance plan that you can benefit from:
- If the breadwinner of the family passes away, then the lump sum received from this scheme can work as a replacement for their salary.
- In difficult times like mourning the loss of a family member, a life insurance policy could offer the family a debt-free future as well.
- You can claim tax benefits when you file for your taxes every year against the premium you pay for this insurance policy
- There is an option of term plan with return of premium, wherein if the policyholder survives the policy term, then survival benefits kick in, where they get annualised premium in return.
Remember, the best term insurance plan coupled with a few diversified investments will help you create a strong portfolio from the very beginning, and you will no longer have to worry about providing for your family even when you are not around.
The Bottom Line: Find The Best Term Plan That Offers You Holistic Cover
All in all, a term insurance policy will not only be affordable with its premium but also suffice for your family’s needs in your absence. One of the highest claim settlement ratios (CSR) in the insurance industry is held by the best term plans, which seems further assuring for you and your family members as well. You will not have to worry about them doing the rounds of the insurance company if you have chosen an insurer with a high CSR.
Besides, term insurance does not necessarily mean that you are investing a lot right now and will see almost no benefits for yourself. One of the most lucrative benefits you can enjoy from a term insurance policy is the tax deduction you can claim. According to the Income Tax Act of 1961, you can avail of a tax deduction of up to Rs. 1,50,000 on your premiums as per the old tax regime every year, under section 80C.
The key to a healthier and happy married life is securing your today and saving for your spouse and children, one premium at a time.
