Help your siblings reach their financial goals with these freebies

Each year, the month of August is the celebration of a beautiful relationship between a brother and a sister on the auspicious occasion of Raksha Bandhan. The brothers promise to be there for the sisters forever and ever, and it is customary to give them a meaningful gift as a symbol of love and care. We realize that with the ongoing pandemic, the celebrations may not be as grand as it used to be, and we also realize the need for protection since the pandemic struck last year.

Protection plans could help your sibling secure their financial future when they need it most. Helping your siblings understand the importance of a protection plan such as term insurance or a plus investment protection plan such as a unit-linked insurance plan (ULIP), might be a good option. for this occasion of Raksha Bandhan.

Understanding ULIPs

Unit-linked insurance plans (ULIP) offer the dual advantage of insurance (life coverage) and investment in a single policy. Helping you to grow your wealth while protecting the future of your loved one from unexpected moments. A ULIP invests most of the premium in different funds (debt, equity or balanced) depending on the policyholder’s risk appetite and a small portion of the premium goes towards insurance coverage. ULIPs are well suited for achieving long term goals such as child education / marriage, buying a home, planning for retirement and more. Plus, these plans are a great way to start saving for your future goals in a disciplined way.

For a winning sibling, they can buy and invest in ULIPs as this provides protective coverage and helps grow their wealth to meet their child’s future needs, such as higher education. Additionally, an insured only needs to pay a small amount of money based on their budget each month to save with ULIPs. ULIPs are a good option for obtaining good long-term market-linked performance.

Understand long-term plans

Your brother or sister must be sufficiently covered if they work and contribute to the family income. This Raksha Bandhan, you can ensure the financial security and stability of your siblings by guiding them and introducing them to term insurance. A term insurance plan will help your sibling keep the family financially secure. If he or she has a loan like a student loan, in case an unfortunate event occurs, the claim money can help your parents pay off the loan. If he or she has children, the term policy will ensure that the education of your nieces and nephews is not affected in the absence of your brother or sister.

The amount of money to invest is determined by financial needs and circumstances, type of insurance, policy term, goals, time frames and risk tolerance. You can consult a financial expert if necessary, conduct research online, and explore other options to protect the safety and financial needs of your siblings.

Disclaimer:Varun Gupta, Chief and Appointed Actuary, Bharti AXA Life Insurance. Opinions are personal.

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