Are you prepared with secured financial future?

Savings is important in every step of life. It is only when you save enough you’ll be able to enjoy life in true sense. Secondly, future is unpredictable so it is important one need to work on some sort of saving plans to secure your family’s future.  Today, markets have introduced various investment plans, policies, mutual funds, bonds, gold investments and other tools for savings. You have to carefully choose the one that fits into your income source, family requirements, risk appetite and most important the tenure at which you want the corpus to fulfill your dreams.  Savings insurance plan are one of the best saving plans of modern day times that will keep you away from worry about sudden requirements and you can continue earning money on your other investments. These plans provide cover for a specific period and you’re eligible for sum assured, bonus or paid-up additions.  Although each plan is unique, certain important factors that remain same across all saving plans would be as follows:

Requirement

For any plan to be successful and to work for you the first thing would be determining your requirements and the time period you need the plan for. Also, inflation costs, stoppage of income phase needs to be taken into consideration to decide the right amount for your plan.

Charges on plan

Every savings plan will have some costs attached to it such as maintenance charge, administration charges, fund switching charges or surrender charges etc. At the end your charges should not cause a major loss in your earnings. Hence, one has to plan wisely on the right mix of an amount that can be spared for installments on policies and fund charges, yet fulfill the concerned need. Your plan will be one of the best saving plans if you provide complete flexibility in terms of cash withdrawal, bonus receipt and term of the policy as well.

Plan Features

All saving plans have different characteristics. Some may provide good equity ratio, while other offer good type of deals in debt oriented funds. You need to select particular feature depending upon your risk appetite, income source and goal types. It is advisable to never opt for a premium which is more than your income source. If you’re unable to make payments your policy might get lapsed in future.

Goal Segregation

Every goal should be segregated as short term and long term goals. Short term goals will be like going for vacation with family or owning a car etc. While long term would be retirement planning or child education. For short term you can opt for debt-oriented funds that will yield safer results. For long term you can experiment with equity funds, generate good earnings and shift them to debt oriented funds to produce safer and good results in the end.

Goal Monitoring

It is advisable, when situation changes e.g If there is heavy recession or job loss, you get married and have a baby etc. learn to adjust your saving goals by either removing less important ones or by pushing back the target date for goals. For successful and efficient execution of the best saving plans keep your workbook updated. Review it regularly to make sure you stay on target. Monitor your target dates from time to time to help you stay focused on your goals. Talk to financial expert wherever required. And create one of the best  saving plans for your family’s concrete and happy financial future.