If you are married with a child, you are set to enter a challenging phase in your life, financially speaking. Read further if you want to know the needs that you may have to provide for. Also, get to know how life insurance can help you with fulfilling those needs.
Child’s education and marriage
Perhaps the biggest need for any parent is saving enough money for his/her child’s education. Every parent aspires and dreams for their children to receive education from the best universities and institutes, India or abroad. But the costs of the same render it almost out of reach of the common man. *Have a look at these statistics:
- According to a survey by ASSOCHAM, 169% has been the rise in inflation in primary and secondary education from 2005 to 2011.
- Medical under-graduate course from a top-tier government aided college costs Rs 5-10 lakhs annually.
- Same degree from private colleges would cost Rs. 15-20 lakhs.
- Same course from an international university would put you back by Rs 1 crore.
- A post grad degree would cost nothing less than Rs. 30-35 lakhs.
In the light of the above, if you want to enrol your child for higher education 10-15 years from now, you need to make a provision for the same by investing your savings in an endowment plan like Edelweiss Tokio Life Wealth Builder that will allow your initial investment to grow using the principle of compounding.
Let’s assume that you are in your late 30’s with a kid who has entered primary school. With the costs of bringing up your family set to rise in the next few years, it would be a good idea to start investing in a retirement plan that would provide you with a corpus when you are nearing the age of 60 or so. If you delay this, you may perhaps not be in a position to save enough for your retirement. You don’t want to depend on your offspring for your survival in old age, do you?
Rising medical expenses
With advancing age, medical expenses tend to rise. This is because probability of incidence of diabetes and other critical ailments tend to increase. If you are healthy now, it’s better that you take a critical illness plan like Edelweiss Tokio Life CritiCare+ to safeguard yourself against the financial burden of a critical illness.
Need for more assets
Since your family is growing, you may need a bigger car or a bigger house, all of which will entail increasing expenses. Although your income may increase over a period of time, it may not increase in the same proportion as inflation, thus putting more pressure on your income. Hence, it is important that you make investments in ULIPS like Edelweiss Tokio Life Wealth Accumulation (Accelerated Cover) to give you a cushion of additional funds that you may require.
Need to secure your family’s future
Just imagine; while you are busy making plans for your life, a tragedy happens and you meet with an untimely demise. What happens to your family then? Who takes care of them? How can they face the financial burden of meeting the home loan EMI’s, utility bill payments, life expense etc without their breadwinner to provide for them? All this can be taken care of if you take a term insurance plan like Edelweiss Tokio Life MyLife+. Term plans give a fixed pay-out to the beneficiary of the policy in case the policyholder meets with an untimely demise. This will give your family financial support when you are not around to provide for them.
You can cover for all the needs of your family if you plan properly and use life insurance to your advantage.