Methods To Ensure A Strong Financial, Post Retirement

With time, the aging demographic of India is increasing rapidly. This means that the earlier you start preparing for a strong financial future, the more prepared you will be to meet the financial challenges of tomorrow. But many people are guilty of ignoring their pension plans till the last minute, leaving them with very little time to secure their financial future in a strong manner. According to recent data, the people above the 65 age mark have risen greatly, thanks to advancement in medicines and technology. This means that life expectancy has risen significantly over the last few decades, but many people still plan their retirement only through pension plans, rather than looking at other retirement plans that can help them secure their financial future in a much enhanced manner. So since life expectancy has increased substantially, it is safe to assume that most people will live well past the 65 mark-meaning that the money set aside for retirement, might prove to be too little in the end. So what retirement plans are available that can help you supplement your pension plan in an effective manner. There are quite a few.

The two main categories of retirement plans are savings and investments. Putting away some money on a monthly basis into a registered retirement saving plans will ensure that you have a significant amount when you retire. This means that the earlier you start investing, the more you will be able to save in an effective manner. Investments are also a good option as they have rich rewards though they may be risky. So always consult a financial expert who would be able to help you make a sound financial investment for retirement.
Another aspect of retirement planning that people must consider is investing in a good and sound life insurance policy. A life insurance policy is extremely important and it is best to invest in one at an early age as this will ensure maximum returns. This is because an insurance policy secures the financial interests of your family and loved ones in case of your death. Life insurance can ensure financial security to those people who really mean a lot to you such as your spouse, children and parents. A carefully executed and planned life insurance policy will go a long way in helping you to prepare for the uncertainties in life as well as give you the peace of mind knowing that the future of those who rely on you is secure. It is therefore a smart idea to invest in a secure and comprehensive life insurance policy as early as possible.
In today's era, ensuring and planning for a strong financial future is not given its due importance and many people tend to overlook its benefits, especially when they are young. This more often than not results in disastrous consequences. Investing in the various retirement plans available is important and this will effectively help you deal with the stress of growing old as well as ensure that your retirement years are financially secure and comfortable.

Child Insurance Policies – How Does It Help Future?

What’s the major financial responsibility of a parent nowadays? At least 2 out of 3 say, “It’s to meet the ever- increasing expenses of their child’s education.” The fact is that maximum financial planners say that as price increases, the main thing to get impacted is the education sector. Planning for the future of your child is an important step for their better and peaceful future.

                   

Child insurance plans are one of the tools that help parents secure the financial future of their kid. Children plans have always been common in India; nevertheless their importance has gone up lately because of increasing expenditures, mainly in education sector.

Previously, the trend was that a policy was taken in a child’s name, which was a simple money-back policy. Nowadays, parents take a term cover in their name, which would be changed if there is any loss of earnings because of the early death of any of the earning parents. Therefore, it has the twin benefits of investment as well as security.

How do these policies work?

The majority of these child insurance policies plan to meet your monetary requirements. These policies offer you the funds at pre-fixed intervals, which will assist you, meet your child’s monetary requirements at diverse milestone years.

With this, if a parent buys an income benefit rider, the child receives 10% of the amount assured till the child reaches his/her milestone years, which takes care of the income loss. Likewise, if you have a (ULIP)-linked endowment policy in your child’s name, you can extract in advance 20% of the amount assured after five years from the actual day of the plan.


Are these policies worth the money?

The insurer pays the amount assured to the nominees straightaway after the death of the parents. Moreover, the insurance company starts putting in the premium sum into the similar plan, in support of the policyholder.

This money keeps increasing and is offered to the applicant once the plan matures. Though, financial advisors have a different take. This policy is nothing then an endowment plan.

A parent must choose a term plan be it a working father or a mother, on whose salary the child’s future is reliant on. That will look after the child’s monetary requirements in case of untimely passing away of any of the working parents

So, buy a child education insurance plan today and make your child’s future safe.

What to Analyse before taking a Life Insurance Plan?

It is insignificant to discuss about the significance of a Life Insurance Policy. Life insurance in India is an essential tool as it lessens your risk and secures you as well as your family, gearing you up to face the tough times that life throws at you.



When we talk about a Life Insurance Plan, we are discussing about a written agreement that is settled between a policy holder as well as an insurer when the policy holder pays a fixed insurance premium to the insurance company and he, in return, offers agreed benefits of the same to the policy holder. It is essential to note here that the benefits received might not only be limited to death of the insured person, however, it might also be extended to critical ill health, or terminal illness. Nevertheless, this would depend on the kind of insurance and the kind of written agreement that has been signed by both the parties.

Life insurance plays an important part when you want to get peace of mind for your family. Once you are an insured person, you turn out to be sure that even your absence would not bring any sort of monetary hardships for your family. A regular insurance premium is compensated by you to the insurance company so as to insure this security. You might go for a lump sum payment of premium or prefer a regular every month, every quarter, half-yearly or an annual payment mode, depending on your income as well as preference.

But, if there is no one dependent on your income or if the sum made by you as your income doesn’t form an important part in helping your family and their requirements, in that case you might invest in retirement plans to secure your old age.

Selecting the Life Insurance Plan

Requirement Analysis - It is of utmost importance for you to analyse whether you need life insurance or not.

Financial Analysis - Once you have discovered that you require life insurance cover, the following step would be to perform a financial analysis. This would not just come to the amount that you are able to pay as premium towards your insurance however; it would also involve figuring out the worth of your life. The vital as well as relevant question would be - “How much financial compensation would my family call for, so as to not only sustain themselves however, to live monetarily secure life after my death?”

The Importance of Planning for Retirement

In life, many people underestimate the importance of retirement planning. They feel that the level of comfort and luxury that they experience in their current lives will continue till they die. This, however, is not true and that is why, it is very important to have strong and comprehensive retirement plans so that you are able to live comfortably even when you no longer enjoy the advantages of a constant salary. If you start to invest early in your working career, it will ensure that you have enough funds to navigate through your retirement years in a pleasant manner.



Some of the reasons why you must start planning for retirement at a young age include the following:
1. Life Expectancy: As of 2014, life expectancy is crossing the 70+ mark for both males and females. With major advancements in technology and medicine, life expectancy is set to increase in the future as well. This means that you would require substantial amount of saving in order to live your retirement years in a pleasant and non-dependent manner.
2. Medical problems: As the human body ages, its immunity decreases and it becomes more prone to diseases and problems. Health problems require expenditure that can create a dent in your savings. In such cases, it might become very difficult for you to balance your savings and medical expenditure in such a manner that it does not cause problems in the future. Remember, Medi-claims do not always suffice and it is best to have a good retirement plan in place.
3. Nuclear Families: The values and traditions, that bound society a few years ago, have rapidly transformed and this has resulted in a number of changes as well. Today, nuclear families are, by far, more popular and couples tend to have only 2-3 children. Not just this, once the children start their own family, their interaction with their parents is often limited. This means that it is important for individuals to plan not just for the upbringing of their children but also their retirement years in a proper manner.
4. Lack of government sponsored pension plans: Unlike countries like the USA and UK, where the elderly enjoy state pension and security benefits, there are no such schemes for the elderly in India. This means that you have to plan your retirement plans in such a way that you are not dependent on any other third source to help you fulfill your daily financial needs.
5. Inflation: The prices of commodities and cost of living are only expected to increase in the future. That is why, it is important to understand this and invest in services and life insurance policies that can help take care of all your future needs in a manner that you will not have to compromise on the quality of your life, at any stage.

In such scenarios pension plans offered by life insurance companies are extremely helpful as they help an individual to plan their retirement in a much more effective manner. In simple terms, pension plans help individuals to build a retirement corpus. On maturity, this corpus generates regular income stream and is referred to as pension or annuity. Hence, pension plans are different from life insurance policy, which protects an individual from any unfortunate incidents.

In conclusion, your retired life will be way more comfortable and luxurious if your income is structured in such a manner that it fits your lifestyle choices in an apt manner and if you have developed a retirement plan that completely protects the assets that you have worked so hard to gain. Remember, the earlier you invest in a strong and beneficial retirement plan, the less hurdles and problems you will have to face later in your life.

Why is Life Insurance Needed?

Why is life insurance necessary? Is it something that you should consider? Have you thought about your family’s financial condition? Or your financial safety once you are old?

Before we understand the whys of life insurance, here’s a short overview:

What is it?

It is a policy that can be taken from a life insurance company, which helps nominees monetarily after the policyholder passes away. It is a written agreement between the policyholder and the insurance company, which assures a certain sum of money in case of the policyholder’s passing away, or terminal or dire sickness. Certain exclusions are often mentioned in the written agreement to bind the obligation of the insurer, for example claims on suicide, law-breaking, and war. The expenditure or premium on your plan determines the kind and sort of amount you acquire in an insurance program.

Life insurance can be a kind of savings in the end or it can be merged with a pension plan. It can offer safety, protect home mortgages, and help in retirement savings.

  
Life Insurance in India
The Insurance Act, 1938, as well as Insurance Regulatory & Development Authority Act, 1999, has made this a central government affair. Hence, all life insurance companies in India have to follow the hard-and-fast regulations outlined by (IRDA), regardless of whether they are state-owned or private.

Kinds of Life Insurance
Buying a life insurance plan covers the uncertainty of dying too soon, by offering monetary help to your family in the case of your passing away. It moreover manages the risk of retirement- offering money to you in your non-earning years. Consequently, selecting the correct policy type with the coverage that is appropriate for you becomes important.

There are a range of plans offered in the market, from term endowment and whole life insurance, to money back policies as well as pension and retirement plans.

As essential as it is to get life insurance, it is of even more importance to pay your premiums timely. A company provides the insured person a grace period of thirty days i.e. thirty days from the due date of the premium. The insured can pay the premium on any day inside this grace period. In case the insured person dies within the grace period, the insurer is accountable to pay the death benefit to the nominee less any sum owed (comprising of the unpaid premium). This helps the insurance firm to lessen the risk of policy lapse.

In these risky times, you are better off planning beforehand, and securing the future of you and your family. So, prepare yourself with the information for an assurance of a lifetime of monetary safety.

In India, specialized insurance company like PNB Metlife ensures financially secure Retirement Plans, Pension Plan with Life Insurance Plans to all individuals. For more details visit - PNBMetlife.com

Three Rules for Retirement Planning

You're medically fit and apparently in your twenties or thirties, so why should you be thinking about your retirement right now? The fact is that a lot of industry professionals consider that you must begin your retirement planning from the very first day you start making money. However, let's be frank; how many of us have actually done that? Possibilities are, very few. But, don't worry. Act in accordance with these 3 rules for retirement planning and you are going to be well on your way to a peaceful retirement time.

1. Save 10% of your salary as savings for your retirement

Often, retirement plans turn out to be a good monetary help for a lot of people. It doesn't matter what amount you actually put in each month, what matters is the regularity of contribution. These long term saving plans pay off enormously in the future with the power of compounding. That is the reason why it is essential to start early. This is one of the most fundamental rules of Retirement Plans.

If you are self-employed, then it is of more importance that you get yourself insured and save money on regular intervals via a retirement plan.

     2. As you get an increment in salary, increase your investment as well

Just got an increase in salary? Kudos! But that does not mean that you go out and purchase a designer bag. What you should be doing is saving more in terms of your investments. Sure, everything is more costly than it was. But, rising prices are an inescapable truth of life and increased cost of living is a big reason to enhance your investments.
Say you get a hike of approximately 10% every year and consequently you add to your investment, this will make you gain a good retirement corpus.

     3. First, Save for Retirement then for Education

Our children are our first concern and every parent wishes to offer their child the very best in life. However, that often means making a compromise with your own future.

As we all know, there is no loan available for retirement. You're on your own where this is the matter. Therefore, start planning for your retirement early on in life and plan sensibly. This will help you lead a life of independence in the future, by not being dependent on anybody for money.

PNB Metlife understand the requirement of retirement needs, for more details visit online - www.pnbmetlife.com

Invest in Investment Plans

Managing your investments turns out to be simple when you make it a habit to set money aside for later use or save, even if it’s extremely little money. You should maintain a detailed account of personal income earned by work against expenditure on an every month basis, before you start investing. Following are few steps you can act in accordance with:

1. Make a Financial Plan and Track your Expenditure
A financial plan helps you find out problem spending areas and helps manage your available funds. Tracking your expenditure vs the financial plan helps you restrict spending and let cash clear present liabilities and save for retirement or for your kid's education.

2. Pay off your Present Credit Card Debts
Are you astonished that remunerating credit card debt is a step towards making investments? Credit cards charge high sum of interest and makes you repay the principal amount, as well. When you clear this sum, you‘ll be happy to know that all the interest sum and late charges you remunerated for credit cards can be used for your investment and savings plans.

3. Save Adequately for the Time of Need
Financial crisis often arrive unannounced. Make sure that some cash is set aside to cover such expenses.

4. Invest in Education, Retirement and Pension Insurance Plans
You are able to archive life cover, education cover as well as save for retirement when you contribute money in an insurance plan. Apart from this, you get tax exemptions to cut down your present-day tax pay out. For example, you are able to buy the life insurance policies which provide not just life insurance, however riders for investing of the insurance premium sum, so that you acquire great returns when you retire.

5.  Invest in a wide-ranging or a Regular Investment Plan
Your risk survival level goes a long way in determining your investment plan of action. If you’re not afraid to take a chance, in that case you might want to buy equity based mutual fund. Otherwise, you might want to put in money in a policy that includes bonds as well as other safe securities. Moreover, make sure that you bear in mind your investment goals before you consider investing in investment plans.

PNB MetLife offers the best investment plans in India, with which you are able to help your family by giving them peace of mind as well as can make your money multiply, simultaneously.