The festive season has started. During this time people are busy celebrating festivals like Navratri, Dussehra, Diwali and Christmas. People across the country celebrate these festivals with their families and spend a lot on gold, houses, carts, clothes, etc. But along with the expenses, on this occasion you should also think about financial planning. With the right financial planning, you will be better able to meet your and your family’s financial goals. In such a situation, there are some good products available in the financial market, in which security can be found by investing. Some of these investment options are showing the knowledge of insurance sector and Subhash Nagpal, CEO of ComparePolicy.com.

Budgeting is necessary

Budgeting is one of the first steps to control spending during the festive season. Whether managing monthly expenses or investing in a scheme, by keeping a budget, you can control the expenses and can also save systematically. You can easily avoid unnecessary expenses by making a budget, especially during festivals.

Be cautious about expenses

Many times you prepare a budget keeping financial planning in mind, but even then you are not able to avoid overspending. After shopping for festivals, it is often revealed that many things have been purchased without any need. In such a situation, it is important that you shop within your fixed budget and before buying anything new, definitely think whether it is needed or not. To promote sales during festivals, companies bring various offers like SAIL, Bumper Sale. Many times customers buy all things without need due to these attractive offers. In such a situation, before buying any product, you should find all the existing offers, so that you can choose a product that is according to your needs and budget.

Focus on savings and investment

The festive season is the best time to make new investments and start saving. The savings made now will keep you ready for all the expenses in the coming years.

Talking about new investments, ULIP schemes prove to be much better for meeting your financial goals. Let us know about some ULIP plans.

Bajaj Allianz Future Gain

Bajaj Allianz Future Gain is a ULIP policy, which gives you the option to invest in seven different funds.

Coverage:

• Death Benefit: On death during the policy term, the nominee gets a lump sum amount as Death Benefit.

• Maturity Benefit: At the end of the policy term, the fund value (including the top-up fund value) is payable at maturity, provided the policy continues till that time. You can take this amount as a lump sum or in installments.

• Top-up premium: Top-up premium facility is available for the entire policy term except the last five years of the policy. There can be a top-up premium of at least 5 thousand rupees.

HDFC Life Click 2 Invest

HDFC Life Click2Invest is an online unit linked plan that provides you with financial security for your family as well as market related returns. Through this plan, you can invest in investment funds.

Coverage:

• Death Benefit: On death during the policy’s implementation, the nominee will get 105 percent (whichever is higher) of the sum assured, fund value or all the premiums paid. The policy ends on its own after payment of the death benefit.

• Maturity Benefit: The total fund value is payable on the date of maturity at the end of the policy term. You can get this amount in lump sum or in installments.

• Partial Withdrawal: Partial withdrawals are allowed from the sixth year of the commencement of the policy. Also, the facility to increase or decrease the policy premium is also available in this plan.

PNB My Wealth Plan

• Death Benefit: On death during the policy’s implementation, the nominee will get 105 percent (whichever is higher) of the sum assured, fund value or all the premiums paid.

• Maturity Benefit: The total fund value is payable on the date of maturity at the end of the policy term. You can get this amount in lump sum or in installments.

Loyalty Benefits: Guaranteed Loyalty Additions are received at the end of every policy year from the sixth year of commencement of the policy. It is paid according to the terms of the policy.

Know 3 good term plans

In case of your absence, it is advisable to buy a term plan to protect your family’s happiness. This plan ensures the financial security of your family. Let us know about some term plans. The premium for these term plans has been calculated according to the age of 30 and a non-smoker male to get a life cover of Rs 1 crore for up to 65 years of age.

Max Life OTP Plus Plan

The premium for this term plan is Rs 810 per month.

key features:

• Outright Death Benefit to Nominee

• There are many options to take Death Benefit

• Life stage benefit to increase the sum assured

• Critical Illness Benefit

-Sum Assured Discount

ICICI Pru iProtect Smart

The premium for this term plan is Rs 800 per month.

key features:

• More coverage in case of death, terminal illness and disability

• Different payment options exist

• Option to increase cover in case of accidental death and critical illness.

-Discount on premium for non-tobacco users

Aegon Life Items

The premium for this term plan is Rs 558 per month.

key features:

• Same policy to cover husband and wife

In Built Terminal Illness Benefit for critical illnesses

Payment of Sum Assured to the other on the death of one of the spouses

Monthly income benefit

• Easy option to buy online policy without any hassle

Note: In this article a few selected policies are mentioned for example only. Apart from the insurance plans mentioned above, you can choose an insurance policy by taking stock of other schemes for you and your family.

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