Savings should always be significant. All earning individuals understand and appreciate the need of a significant amount of savings to address all future needs. The requirements can be multiple, be it the event of a marriage ceremony, buying a new home or vehicle, children’s higher education or medical expense of elderly parents, need of money is indispensable in all situations. The case worsens under conditions of untimely death of the only bread earner of the family. It is always advisable to opt for term life insurance to take care under such circumstances.

Term insurances are financial instruments where the immediate beneficiary of the insured is provided financial security under events of the untimely death of the insured. According to the policy conditions, the insured has to pay an affordable amount of premium at regular intervals over the entire policy term to keep the insurance active and ongoing. This way the dependent family members are provided financial support and assistance even in the absence of their only earning member. The term insurance policy provides tailor-made financial coverage options catering to the requirement of the customer, freedom to choose among multiple benefits, flexibility to increase life cover befitting the customer’s needs, thus providing a host of opportunities solely dedicated towards customer satisfaction.

Saving money for a peaceful post-retirement life is also essential. Pension plans are best suited for the purpose. Pension plans, also known as retirement plans, allows provision to have a regularized monthly income even after the retirement of the earning member of a family. This is realized if the policy holder allots a certain sum of money (called premium) at regular intervals to the insurance company during his earning period. The investor receives regular payments (called “Annuity” in financial terms) from the insurance company post his/her retirement. The frequency of annuity receipt can be regulated from various options like monthly, quarterly or annually depending on the policy norms. Investing in pension plans is essential to ensure complete financial independence post retirement. Often people do not wish to rely entirely on their children’s income in old age and consider it humiliating. Retirement goals like travelling, foreign tour or any long-time favourite hobby can be pursued without any hassle if one opts for retirement plans well in advance.

We all care for our loved ones; hence, term plans have become a mandatory investment for all families. It provides financial strength and stability to the bereaved family members under circumstances of accidental death of their only bread earner. Opting for retirement plans too is a judicious choice and ensures a comfortable and independent post-retirement life. Hence, it can be inferred that hard-earned earned money should be dealt with utmost care and planning. Invest wisely, smartly and in safe hands to assure a fruitful, happy and contented life.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to [email protected].