When you are young, you do not necessarily think of financial planning as a priority. But, as you grow older, the responsibilities in life also evolve. It becomes imperative when you are going through significant life stages, such as marriage. It is about two people sharing their goals and ambitions and their financial assets and liabilities. Most likely, your perception of investment decisions would be different before marriage than after it. Here is where you need to take few steps to protect your family as well as your financials. In this article we would provide 3 key things that would have significant impact on your financials.
Also Read: Best Term Insurance Policy in India in 2021
I – Life Insurance Plan
As you may know, life insurance allows you to secure your family against contingencies. The term policy is one of the most popular types of life insurance among people. With marriage, you and your partner step into an important phase in your lives. A term policy can be the primary step into putting a sound financial plan together.
It helps create a safety net that can be valuable in a time of crisis for your spouse. There are several such relevant benefits of a term policy.
Financial Security: It is unpleasant to imagine a future where your spouse or children are dependent on someone else for their survival. If you begin evaluating your future requirements at the time of marriage, this can be avoided. Consider the factors relevant to your profile and select a term plan to make the most of it.
For a young married couple, there are specific life goals that they wish to achieve. A term policy ensures that your family will not have to compromise on their dreams, even in a difficult time.
Meet Emergency Requirements: In life, there are situations that you cannot predict or control at all. If such a problem occurs, you can quickly run through your savings and make your family vulnerable. However, a term policy helps prevent this by providing family members with financial assistance during an emergency.
II – Health Insurance
A significant matter of concern is the rising cost of health care in our country. Moreover, our health is always at risk due to the increasing threats in the environment.
Apart from a term plan, it is incredibly crucial to plan for health emergencies for you and your spouse with health insurance. If you are already covered, it is essential to review the terms of your policy and make the necessary adjustments.
Family Planning: If you plan to start a family, it is a must to opt for maternity cover under your health plan. It is also vital to do it as early as possible since all plans come with a waiting period. You can avail of the benefits once the waiting period is over.
Comprehensive Coverage: A suitable health plan for you and your family is one that offers all-around protection. If you were covered under a plan previously, you could switch to a more inclusive health insurance policy.
Relevant Riders: When you share your life with someone, their health problems affect you and other family members as well. They may have particular needs from the health plan, which must be assessed carefully. Having done that, you can determine which riders are appropriate for you.
You can consider some of the best health insurance plans in India.
III – ULIP
Unit-Linked Insurance Plan (ULIP) are unique insurance products that offer life coverage and investment in funds. It enables you to fulfill insurance and investment goals within a single plan. While I am not in favor of ULIPs, low risk investors can look for low cost ULIP. Medium to high risk investors can avoid ULIP. Understanding ULIPs can help you to know whether it suits you or not
Flexibility: With a ULIP, you can invest in different types of mutual funds depending on your risk appetite and financial profile. Most insurance providers allow the policyholders to switch funds, making the policy more convenient and desirable.
Potentially Higher Returns: Investment in ULIP can bring higher returns over the long-term at relatively lower risks. However, it is essential to have patience and understand the market situations well to yield better results.
The changes in the financial situation after marriage brings along a set of new challenges with them. Hence, it is crucial to review your evolving investment requirements and plan accordingly. Be it a term plan, health insurance, or any other investment type, remember to go with a trusted insurer to receive maximum benefits.
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