There is a lot we can gift our loved ones on festive occasions and their special days. Right from confectionery items, chocolates, and sweets to buying a mobile phone, jewellery, bike or even a house, you may have thought of every possible gift based on how near and dear each of them is to you.
However, if you really want to make a difference in their lives and do something meaningful, then consider gifting your loved ones the joy of financial freedom – a life insurance policy.
It is admittedly a unique gift and not something most people would choose to give, but if you think about it, then it is the most valuable gift to your family members and something they simply cannot put a price tag on, i.e., their financial security and peace of mind.
What is financial freedom about and how do you achieve it?
In simple words, when you have enough savings, emergency cash put aside for a rainy day and investments to help your money grow, then you will have achieved financial freedom.
Financial freedom means not having to work because you are forced to earn that money anymore, and while it is not an easy target to achieve, it should be one of the most important goals of your life. Attain that work-life balance you have always dreamed of and aim towards a stress-free retirement life that you can enjoy with your near and dear ones.
Financial freedom means different things to different people. For example, a 30-year-old unmarried man may find it easier to achieve financial freedom as he has lesser responsibilities. However, a 40-year-old married woman who has a home loan, a family and a young kid will find it relatively difficult to become financially free at the same pace as the man.
Achieving financial freedom can be done in two parts:
1. Becoming debt-free
One of the first steps towards achieving financial freedom is being debt-free. It is often difficult for people to be free of debt and not have to worry about any impending expenditure. Slowly but regularly, you can start paying off your dues towards an EMI or credit card for example.
Credit cards often get us into the habit of swiping and paying at the moment, but it becomes a habit that we find difficult to shake off in later years. Not only should you ensure that you are debt-free but also try and help your families become debt-free.
If for some reason, you do not manage to clear your debt, then at least an insurance policy can ensure that your debts don’t become a new burden to your family in your absence. Out of the many types of insurance policies and plans, a life insurance policy has been one of the best in terms of offering a cover.
2. Starting with your investments
Becoming debt-free is one leg of achieving financial freedom and starting with your investments is the other. With all the money you are managing to save, you must look for an ideal investment plan to invest your money and let it grow.
Apart from investing in instruments like mutual funds, stock markets, gold etc, you should also consider starting a life insurance policy online to create a financial cover for your present and your family’s future even in your absence.
You can get coverage for your loved ones when you buy life insurance online and the policy offers a death benefit to listed beneficiaries but at the same time, it also accrues cash over time.
While a life insurance policy will be a valuable gift to your loved ones, you can also benefit from the same in more ways than one!
For example, if your yearly insurance premiums do not exceed 10% of your overall sum assured, then you can claim them as deductions while filing your taxes. Under the Income Tax Act of 1961, section 80C, you can claim a deduction of up to Rs. 1,50,000 as per the old tax regime, and this includes life insurance premiums too.
The bottom-line: Life insurance policy as a gift
It may seem like an unusual gift during the festive season and a costly one at that, but the gift of life insurance online would be priceless in itself. You can help your family members achieve financial freedom in no time.
Besides, it ensures that even if there are expenses to be taken care of and upcoming financial burdens like a marriage or children’s education, then your insurance amount can easily cover it all and then some.
However, before you go and directly buy life insurance online, be sure to sit down with your family and discuss the finer details with them. It is important to know how much cover they would require from the life insurance policy to meet current and future financial expenses.