PLANNING FOR DREAMS UNLIMITED..
- All of us have big dreams like going on a annual foreign holiday, buying a large house in a posh locality, sending our child to the best school / college and retiring in comfort at the age of 50 and we work hard and save harder toachieve them. Irrespective of our financial status in life, certain basic goals like child’s education and marriage, purchase of house and our own retirement are non-negotiable and unavoidable. The sooner we plan and save for these goals, the better is the utilization of the power of compounding in our favour.
- For the salaried employee, the 15 years of his life starting from 35 years going up to 50 years is the best phase of his life as he is at the peak of his career and income. If we apply the 80/20 rule here, then 80% of his lifetime investments in done in this phase of his life. Therefore, he needs to be prudent while allocating his money and not go overboard on any particular investment.
- Let us examine some of life’s critical goals in order of importance:
- PROTECTING YOUR LOVED ONES :
- ➤This is the single most important goal. As our lifestyles get more hectic and stressful, it is important for the earning member(s) of the family to be protected against any unfortunate events. Buying a term insurance plan is the best available option to protect your loved ones. Today, a Rs. 1 crore cover for a 30 year old non-smoking male for a 30 year term costs approx. Rs. 8,000 p.a. The same cover for a female will cost approx. Rs. 7,000 p.a.
- PROTECTING YOUR HEALTH :
- ➤As countries get more developed and our cities more urbanized, people have developed sedentary lifestyles with greater rates of obesity and consume more processed foods, alcoholic beverages and tobacco. The result is lifestyle related diseases like Alzheimer’s, cancer, diabetes, heart disease, stroke, depression etc. are on the increase and account for majority of deaths in metros and cities. While this has resulted in a range of medical institutions and professionals on call to help people with these diseases, the costs of availing these services is escalating on a daily basis and is on the verge of becoming unaffordable for an average middle class person. Therefore, buying a health insurance policy either on a individual or family basis is critical to cover the family against any future health related emergencies. Today, a Rs. 4 lacs health cover for a 30 year old married person covering spouse and child will cost approx. Rs. 7,000 – 9,000 p.a.
