Guide for Parents to Secure their Child's Future

There is nothing more important than a child to a parent. A parent would go to any length to ensure the happiness of a child. He/She is responsible to not only take care of the needs of the child but also prepare /them well for a secure future, to be self-sufficient and ready for all that life has to offer. But, how does one ensure lifelong support to the child? How do you make sure that your child’s future is secure even if you are not around?

Life insurance is very important for a safe and conducive future. It not only gives him the confidence but also assures a quality life. Therefore, to take up a plan that protects child future is essential. A life insurance plan allows you to invest for him in a way that he/she always has a ‘fall back option’.

You can invest in a term life insurance which is meant to protect the family and provide financial backing in case of an unfortunate event. A term policy also allows you to save taxes, which in turn saves a lot of money that can be reinvested in your child’s future. Also, in the event of a payout, will be tax free.

In turn, it also makes the child more accountable and ready for his future as he knows that an investment has been made in his/her future which in turn makes him/her more aware of his/her duties.

How to Choose the Right Term Insurance Amount for your Family

Term insurance is insurance that is valid for a specific period of time and offers death benefit to the nominee in the event of the death of the insured. The premium for term insurance is low and is often the only factor that drives people to opt for term insurance.

Term insurance is a great way to secure the future of your family, in case you’re not around to take care of them in the future. We never know when and how life may end, so it’s always a good idea to insure your life so that your dependants are taken care of, at least financial, in your absence. But how do you decide how much money is sufficient for your family to take care of themselves? What is the right amount for your term insurance? Here are some deciding factors that you need to carefully look into to decide the amount of your insurance.

1. Your stage of life: The stage of life you’re at makes a huge difference to the amount of life cover you require. For example, if you’re single your only dependants are probably your parents, if they too are earning and well off, you need minimal life cover. But if you’re married with a child, your financial responsibility increases significantly. So make sure you take into account the needs of your spouse and children while choosing an insurance, if you’re at this stage of your life.

2. Your current income: Your term life insurance needs to provide your income to your family, in your absence, to ensure that they can take care of themselves. This is one of the main factors that you need to take into consideration while choosing your term insurance amount.

3. Your loans and liabilities: You need to ensure that your family is not burdened with loan repayments and other liabilities if you’re to pass away. Your term insurance amount needs to be sufficient enough to pay off all your loans and liabilities and help your family get back on their feet after that.

4. Inflation: Prices of everything in life keep changing, mainly because of inflation and deflation. We mostly see inflation and that is one factor you need to consider while choosing your term insurance amount. The things that you can buy for say a thousand rupees may cost you two or three thousand in the future. So whatever is your monthly expenditure now, is bound to go up and you need to decide your amount accordingly.

Four Things to look for while Buying Family Health Insurance

What makes a happy family? A good home, a good lifestyle and the assurance that your family’s future is secured! One of the most important things that you, as a breadwinner or caregiver can do for your family is to insure their futures. This doesn’t only mean buying life insurance cover or personal accident cover for yourself, but investing in a family health insurance plan that ensures the financial safety of your family in case of major illness. A health insurance plan is crucial in this day and age, where health care is exorbitant to say the least. A family health insurance plan extends to your spouse and children and even your parents depending on what kind of insurance you choose. But buying family health insurance is a daunting task with all the information, documents and procedures you require. Buying family insurance plans through an insurance agent is advisable but even so here’s a small list of the things that absolutely cannot over look while purchasing a family health insurance plan.

1.     Ensure that your cover is substantial: Make sure that your insurance amount is more than sufficient for your family healthcare needs. You need to research the healthcare costs in your city and calculate a rough estimate that you think should be substantial. Insurers provide you with a list of diseases and critical illnesses, make sure that you’re covered for most if not all of them.

2.   Check the network of health insurance: Insurers usually operate with a network of hospitals, this means your family health insurance plan is applicable if and when you or a family member are admitted to a hospital within the network of hospitals in your insurance policy. Ensure that the hospitals nearest to you and the hospitals that you prefer fall within the network of your insurance.

3.   Go for cashless cover: It often becomes difficult to arrange for all the cash that is required when you or one of your family members is admitted to the hospital. Cashless cover allows you to seek treatment, without having to pay cash upfront. Always ensure that your family health insurance plan allows you this cover.

4.  Get an early start: There is no right age to buy health insurance for yourself and your family. You can buy insurance when you’re in twenties or even when you’re in your forties or fifties. So start as early as you can and secure your future.