Every parent wants to provide a financially secure future to their family and tries to save intensively so that they have an adequate amount to cover all of their expenses. But as life is uncertain, and the market is ever-changing, unexpected events can seriously jeopardize the financial future of your family.
While it is true that starting to save is the first and an important step towards achieving your financial goals, you can never really know the exact amount of money you will need in the future or if you unfortunately die without having saved enough for your family.
To provide a financially secure future, what you really need is to accumulate wealth over time and at the same time protect you and your family membersâ€™ life against any unfortunate event.
How can you accumulate wealth for the future?
You can consider the following points to build your wealth and achieve your financial goals:
Make a financial plan and start saving
The primary thing you should do is to make a financial plan so that you can get an idea of the amount you have to save to cover your future expenses. It will include saving for all the expected expenses like your children’s education or marriage. Once you make a plan and start saving, you have taken the first step towards wealth accumulation and a financially secure future.
Invest in a wealth accumulation plan
Ordinary savings can cover the expected expenses of the future. The real problem occurs when you have to spend money to cover an unexpected expense like paying the hospital bills for a medical emergency. Paying for an unexpected expense can burn a hole in your savings, and the whole financial future is jeopardized.
A traditional life insurance plan provides you with a life cover but lacks the facility of wealth accumulation. The best way you can multiply your savings is by investing your money in an insurance cum financial product that can provide you a return on your investments and a life cover too.
Wealth Builder allows you to invest a certain portion of your premium in funds of your choice, which you can switch anytime you want. With a life cover, you are also provided returns on your investments which can increase your savings by a huge margin. In any other scenario, you have to invest in two separate plans to get a life cover and return on your investments, but investing in a wealth insurance plan, you can do both under a single plan.
A wealth accumulation plan can allow you to save and build wealth over time. You can use the maturity benefit and interest to cover all of your expected expenses. If anything unexpected happens, you are provided a death benefit, so your family doesn’t suffer financially in your absence.
Do check out the Wealth Builder plan of Edelweiss Tokio Life, which is created to cater to all of your wealth accumulation needs with the addition of tax benefits under section 80C and 10(10D).