Financial Planning: Your Gateway to Overall Health and Happiness
The world today is confronted with a dilemma like no other. The ongoing pandemic has not only created a health emergency but also a financial crisis. Thanks to COVID-19, the term "financial health" is gaining as much popularity as the other aspects of health - physical, mental, and emotional.
Although financial health is not the first thing that crosses your mind while discussing your health which often revolves around staying disease and stress-free, you tend to forget that financial health and wellness are very much a part of your daily and overall health.
Financial health is a concept that describes the state of your finances. It generally means:
How much of your income is being spent on a regular basis?
What do your savings look like?
How much have you set aside for your future goals?
How have you planned your retirement expenses?
While it sounds simple and you might be confident that you are financially sound, it is always good to keep a check on your financial situation to truly enjoy a fit and healthy life.
You could be physically doing great and have no diseases or infections but the worry of your child’s education expenses or that house loan could slowly grow onto you. Remember, your financial wellness is an important part of who you are - both today and tomorrow.
Studies show that mismanagement of finances is the leading cause of stress which can shape into various physical and mental health issues. If you are financially healthy, you are bound to have fewer worries, are more productive, and will be able to enjoy life more. And the first step towards staying financially healthy comes with the right and holistic financial planning.
The Need For Holistic Financial Planning
Financial planning is the process of creating a roadmap that will equip you to achieve your life’s goals - present, futuristic, expected, and unexpected. A financial plan helps you identify how to arrange funds, manage and grow those funds.
Just like ‘holistic wellness’ does not focus on treating only the current symptoms but eradicate the causes of the disease from its roots, your financial plan should also take a holistic approach.
A holistic financial plan is one that allows for saving for your children’s higher education, helps you fund a business, deal with a medical emergency, have enough for a dependent parent, and that helps multiply your current money.
Talking of holistic financial planning, savings are an integral part of it. However, savings that are lying idle in your bank account will not reap optimal benefits for you or your family in the future. And, thus, investing in a life insurance plan is one of the best routes to multiply and grow the value of your savings.
Why Should You Invest in a Life Insurance Plan Today?
Life insurance is one of the simplest ways to be financially prepared for unforeseen eventualities in life.
It is an arrangement between the insurer (insurance company/government) which assures compensation for loss of life in return for the payment of an amount known as a premium. At the end of a specified time period, a lump sum amount is paid by the insurance company to the beneficiary (nominee), in return for the premium paid in case of death or loss of the life of the insured or the policyholder (the person who owns the insurance policy). Life insurance provides all-around financial protection.
Quick Reasons Why You Should Consider Investing in This Tool
1. Provide financial security for loved ones. Investing in a life insurance savings plan is a cost-effective means to safeguard your loved ones’ financial well-being.
If you have a family or a newborn that is financially dependent on you for their needs, it becomes your responsibility to secure their financial future.
A life insurance plan covers your life and assures guaranteed (1) death benefit payout to your loved ones in case of any unforeseen circumstances.
2. Secure money in a great savings vehicle. Savings plans from life insurance companies provide the dual benefit of life cover and the option to multiply your money.
The insurer invests a portion of your premium and shares the profits with you as bonus (3) payments or additions to your invested capital (premium). It can give you sizable returns at the end of the policy period.
The bonus (3) payouts can help you financially cover critical moments in your life.
3. Allow for capital protection and wealth creation. Often, insurers provide guaranteed (1) returns or assured additions on life insurance savings plans. Thus, life insurance policies not only grow your wealth but also keeps your capital safe.
This is especially necessary if you have family members dependent on your income. The capital protection of a life insurance savings plan assures guaranteed (1) returns to your family in their times of need.
How Life Insurance is a Part of Holistic Financial Planning?
It takes care of the protection, savings, and wealth-creation aspects of your financial plan.
Provides timely monetary aid in contingencies such as a life-threatening illness or accidental disability.
Secures your loved ones in the event of accidental death, by paying an additional amount along with the base sum assured that can aid them in your absence.
Helps you fulfill long-term life goals, such as buying real estate or paying children’s higher education fees, or managing children’s marriage expenses.
Serves you in your retirement years through timely income payouts, so that you can maintain your preferred standard of living.
Help settle your debts and liabilities, even when you are not around, without putting any financial burden on your family.
Hence, the importance of life insurance in financial planning is indisputable. And the ongoing pandemic is reiterating this. COVID-19 has affected the savings and investments of people globally. Staying financially secure is an independent responsibility.
The need to invest in a life insurance plan, if you have not yet secured, is pressing. You can also look at COVID-19 life insurance plans that are currently being offered by a host of insurers today.
Now that you understand the benefits of life insurance, the next step is to search for life insurance plans that match your requirements. You can rely on Tata AIA’s long-standing reputation for your insurance and savings needs.
Tata AIA’s Life Insurance Savings Plans to Grow Your Wealth and Protect Your Loved Ones.
Click Here to Know More about Tata AIA Life Insurance Plans
Tata AIA Life Insurance Guaranteed Monthly Income Plan (UIN: 110N147V02)
Guaranteed (1) monthly income for twice the term of the plan
The option to add riders (2)
Tata AIA Life Insurance Gold Income Plan (UIN: 110N131V02)
Guaranteed (1) periodic payouts
Guaranteed (1) maturity benefit at the end of the policy term
Limited-pay option to complete premium payment within the first few policy years and enjoy coverage for the entire policy term
Income boosters to increase your earnings
Tata AIA Life Guaranteed Return Insurance Plan (UIN: 110N152V07)
The choice between an endowment plan to let your wealth grow or an income plan to get periodic payouts from your savings
The flexibility to cover your spouse in the same policy under Whole Life Income benefit
Guaranteed (1) additions to boost your wealth year on year under Endowment Option
Tata AIA Life Insurance Diamond Savings Plan (UIN: 110N133V02)
Regular income after the completion of the premium payment term, plus a lump-sum payout at the end of the policy term
Provision for bonuses (depending on investment-performance) (3)
Options to add riders (2)
Tata AIA Life Insurance Fortune Guarantee (UIN: 110N120V08)
Guaranteed returns (1) on Maturity
Higher benefits for female lives
Tata AIA Life Insurance Money Back Plus (UIN: 110N119V02)
Money-back option providing income at pre-specified intervals to fund interim financial needs
Inbuilt Accident Benefit providing extra payouts in case of a fatal accident
Opportunity to complete premium payments halfway through the policy term with limited-pay mode
Chance to earn more through bonuses (3)
Tata AIA Life Insurance MahaLife Gold (UIN: 110N029V03)
Whole life insurance with choices of coverage up to the age of 85 years or 100 years
Regular (1) income payouts along with lump-sum payout at maturity
Tata AIA Life Insurance Value Income Plan (UIN: 110N153V01)
Option for extended life cover up to 100 years of age
Flexibility to choose your payout
Provision for bonuses (3) to grow your wealth
Guaranteed (1) maturity benefit to keep your funds safe
Tata AIA Life Insurance POS Smart Income Plus (UIN:110N148V02)
Receive guaranteed (1) income regularly or let your money grow through endowment options
Advantage of getting life cover without medical examinations
Higher benefit for female lives
Financial planning is a crucial consideration if you have just started a family. A life insurance savings plan can perform three-fold functions of financial planning – protection, savings, and wealth creation.
Make sure to invest in the most suitable plan that covers your needs and matches your budget when you decide to use life insurance as a savings vehicle.
L&C/Advt/2021/Apr/0552
References:
Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry
Rider are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office.
These bonuses are not guaranteed in nature. The Company may declare Cash Bonus rate annually in advance. The Cash Bonuses if declared, will be applicable provided all due premiums have been paid.
Insurance cover is available under the products.
For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale.
The products are underwritten by Tata AIA Life Insurance Company Limited. The plans are not guaranteed issuance plans, and they will be subject to the Company’s underwriting and acceptance.
This document is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. This document is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this document is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material
Tata AIA Life Insurance Company Limited (IRDAI Regn. No.110 • CIN: U66010MH2000PLC128403). Registered & Corporate Office: 14th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai - 400013. Trade logo displayed above belongs to Tata Sons Ltd and AIA Group Ltd. and is used by Tata AIA Life Insurance Company Ltd under a license. For any information including cancellation, claims and complaints, please contact our Insurance Advisor / Intermediary or visit Tata AIA Life’s nearest branch office or call 1-860-266-9966 (local charges apply) or write to us at customercare@tataaia.com. Visit us at: www.tataaia.com.
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