Dreams, these days, come at a high price. Buying a car, a house, a decent education for kids and preparing for a cushy retirement, are seemingly simple needs. These have been elevated to dreams due to the high cost associated with them. You either require a large income or a strategic plan to meet these basic life goals.

While the former may not always be easy for the average salaried person, the latter is certainly within reach. Make a financial plan the day you start working. Start early and you won’t have to scramble to fund each aspiration.

 

Insurance

 

Talking about making a sound financial plan, life insurance should be a fundamental part of it. And as you age, get married, buy a home, build a family, and plan for retirement, the more important life insurance becomes. It can help protect your income, provide tax-free cash flow and even provide peace of mind to families.

 

The following are three common areas in which life insurance can play an integral part of your financial plan:

Paying off a mortgage:

For most people, a mortgage is one of their largest expenses. Hence preparing for it early is a certainty. A life insurance policy can help provide your family with a lump sum of money to pay off mortgage debt. This eliminates financial stress, as well as the possibility of a loan default or eventual foreclosure.

Funding for education:

You can give your children the gift of quality education by factoring educational expenses into your life insurance policy’s death benefit. This can help relieve the burden of struggling to accumulate college costs. The IndiaFirst Life Little Champ Plan is one such example that offers you regular guaranteed payouts for financing your child’s dream.

Preparing for yours or your parents’ retirement:

A life insurance policy can help meet your retirement-savings goals. It can also play a critical role in financial planning if you have someone you need to constantly care for. So, let your parents live their golden years with ease by preparing now.

 

Life insurance not only provides peace of mind to you and your loved ones but can be an essential part of a sound financial plan. Annually, you should also review your insurance and make required adjustments. If you require any help, consider seeking the assistance of a financial adviser. Additionally, it is crucial to understand all the features and terms and conditions of the insurance policy so you’re aware of exactly what you’re covered for.