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The start of a new financial year always brings new goals to mind and a fresh approach to every individual’s mind. However, while it is very natural to feel stress-free because the financial year has just started for you, it would be in your best interest to not let valuable months slip out of your hand without panning your financial plan. 

While there are many ways people start jotting down their financial plan, an important factor to remember is diversifying your investments to enjoy maximum benefits. With the help of a financial plan, you can analyze your present scenario, sense needs, and expenses in the future, and ensure that your investments and savings will suffice through it all and then some. 

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An ideal portfolio would consist of the best tools to save money, invest in instruments where it can grow and yield returns, and invest in a term insurance plan that will take care of your family’s needs in the future, even in your absence. 

Key Things To Assess When Buying The Best Term Plan In India

If you want to start your financial year on the right foot, then you should start planning ahead and give yourself enough time to assess your present finances and requirements in the future. 

Here is a small checklist to help you analyze how you have fared in your last financial year, what your current year looks like at a glimpse, and what steps need to be taken to secure your and your family’s financial wellbeing in the future.

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  • Review Your Financial Goals

Be it spending on your wedding, applying for a home loan, or getting started on an expense fund for your children, it is important to create goals to be able to save in a systematic manner. 

These goals can be then categorized as either short-term or long-term, and you can begin to plan your investments to suit these expenditures accordingly. Make it a point to review your goals once in a while because if any major event has occurred in your life, it could have an impact on your goals as well. 

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  • Manage Your Current Expenses

People often have bills left to be paid, credit cards with maxed out limit, a home loan left to be paid off yet, and many other such expenses to take care of. Besides these, there is always the day-to-day expenses and monthly figures which run your house. It is important to prioritize these expenses, keep money aside or save for these liabilities before you begin investing your surplus.

  • Create A Diversified Portfolio

Making a financial portfolio is not all about creating wealth by investing in mutual funds, gold bonds, ULIPs, PPFs etc., but it is also about being financially independent in your retirement years. To achieve that, you must look at creating wealth by investing right and financially securing yourself and your family by buying the best term plan in India. 

One of the greatest term insurance benefits is that it not only offers you life cover but also ensures that your family is looked after, in your absence. The multiple riders that a policyholder can choose from also help in customizing the term insurance policy and making it an apt cover. 

  • Claim Tax Deductions With Your Insurance Premium

Buying a term insurance policy does not necessarily mean that you are investing a lot right now and will see almost no benefits for yourself. According to the Income Tax Act of 1961, the premiums of your term insurance can help you avail of a tax deduction of up to Rs. 1,50,000, as per the old tax regime every year, under section 80C. 

Remember to run your premium amount before finalizing and buying the policy because to avail of a tax deduction, and your yearly premium should not exceed 10% of the overall sum assured in your plan. 

Besides, the death benefit that your beneficiaries will receive is generally tax-free. The life insurance proceeds a beneficiary receives aren’t included in the gross income, and hence there is no need to report them during tax filing either. 

Always Choose The Best Term Plan In India

While there are many insurance companies out there with term insurance policies that have very similar benefits, it is important that you do your due diligence and go for the one that has the best of everything. 

Remember to follow your checklist and compare insurance policies, their premium rates, and frequency, calculate your income tax online to know how much benefit you can claim with insurance premiums, and compare the riders that different insurance providers offer. Furthermore, do not forget to check the Claim Settlement Ratio of the insurance companies as the higher the ratio, the easier are the chances of your family getting their claim hassle-free. 

Following this checklist will ensure you have a smooth financial journey and can provide your family with the financial security that they need the most.