How life insurance can help you with different life goals

  • Life Insurance

Knowing your life goals is one thing. Achieving them is another. And to bridge the gap between the two, you need the right financial products to help you out. Truth be told, there are different investment options that come in handy for different life goals.

But interestingly, there's one product that is so versatile that it can help you with many of your major life goals. And that product is life insurance.

There are different kinds of life insurance plans, and by creating a smart financial plan, you can make use of these options to fulfill different goals at different stages of life. Curious to know more?

Well, let's see how life insurance can help you with different life goals at various stages of life.

Life goal: Securing your family's financial future

When you're young and just getting started with your career, you may not have many financial obligations. But the one thing you will want to ensure is the financial security of your family.

This is undoubtedly the first goal that every earning member of any family will ever have. When you start to contribute to your family's finances, you will no doubt want to ensure that in case something untoward happens, your dependents are not left without any financial support.

What kind of life insurance can help?

A basic term insurance can help you fulfill this life goal. Since these are pure protection plans, term insurance policies are more affordable than other kinds of life insurance. Also, the younger you are when you buy term insurance, the lower the premiums will be. So, you can often get a sizable life cover as high as Rs. 1 crore for a few hundred rupees each month.

Life goal: Creating wealth for big ticket long-term goals

As you grow into your late 20s, you may start to earn more, thanks to salary hikes and promotions. At this point, you may start to add more life goals to your list.

Since you're still in the younger age group, it may be the right time to plan for your big ticket long-term goals. The sooner you start to invest for these goals, the more time the money will have to compound. That way, you can create the wealth you need.

What kind of life insurance can help?

To create wealth over the long term, you need to buy a Unit Linked Insurance Plan (ULIP). This kind of insurance combines the dual advantage of investments and insurance. And since you are still young, you can choose to take on higher investment risk and invest in market-linked options like equity funds in ULIPs.

Life goal: Family-oriented milestones

Here, we're talking about the milestones that you'll typically have when you are married and have children. Like buying your first house. Or saving up for a family vacation. Or even purchasing a premium appliance or gadget.

You may also want to secure your family's financial future in case of a medical emergency. With the cost of medical treatments and hospitalization rising, this is undoubtedly a goal that every adult who is taking care of their family has.

What kind of life insurance can help?

Savings plans can help you achieve your long-term goals without taking on too much investment risk. They help you cultivate the habit of saving consistently over the long term. In addition to the guaranteed returns they offer at the end of the policy term, there are also savings plans that give you survival benefits that act as extra income during the policy term. These payouts can help you with your medium-term goals.

And health plans ensure that you are prepared to meet any medical emergencies. They often give you coverage against specific diseases like cancer and other critical illnesses. If you don't want to buy a health plan outright, you could opt for a health-related add-on rider and enhance the protection offered by your savings plan.

Life goal: Saving up for your children's future

Another major life goal that comes into the picture when you have children is to save up for their future. You need to meet the cost of their school education. And then, over the long term, you need to save up for their college expenses. Depending on the course they choose to pursue, that could run into lakhs of rupees.

Parents also aim to save up for their children's wedding. This could also be quite a big ticket expense. And then, there's the goal of leaving an inheritance to them.

What kind of life insurance can help?

Child insurance plans help protect these life goals in case something untoward happens to you. They secure the financial future of your children and ensure that all their basic needs are taken care of. They also allow your children to meet their life goals as planned.

Life goal: Preparing for life after retirement

This is another major long-term life goal. And it's not something you plan for at just one go. You need to chart out a financial plan that helps you save for your golden years right from the time you start earning.

To secure your finances post-retirement, you need to rely on two kinds of financial benefits. The first is a lump sum corpus that you can use to meet any big goals you may have after retiring. The second is additional income that can replace your main income.

What kind of life insurance can help?

Annuity plans or retirement plans can help you with this. They offer guaranteed regular income that helps you meet your everyday needs. You can also choose to receive a part of your benefits as a lump sum amount.

Conclusion

See how different types of life insurance can come in handy for the major life goals in everyone's life? In addition to this, you can also make use of the tax benefits offered by life insurance to meet the one goal that is common across all of life's stages - saving taxes. So, check out the different kinds of life insurance plans available today, and choose the right plan for your needs based on your current life goals.

Read next: HOW TO MAKE THE MOST OF SAVINGS PLANS?

Savings plans can help you meet many major life goals. But how do you make the most of your savings plan? Our blog has the answer.

Read it here

WANT A SAVINGS PLAN THAT COVERS ALL YOUR NON-NEGOTIABLE LIFE GOALS?

If you answered 'yes' to the question above, the ABSLI Guaranteed Milestone Plan fits the bill perfectly.

This savings plan gives you guaranteed additions, customizable benefits and the option to cover your spouse in the same policy!

Know More

ABSLI Guaranteed Milestone Plan (UIN: 109N106V10) is a non-participating traditional insurance plan. ADV/9/21-22/1060

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Term Products

ABSLI Life Shield Plan

A term insurance plan that offers you the flexibility of plan options suitable for your family's non- negotiable goals and ensure they need not compromise on their lifestyle. UIN: 109N109V04

  • Choice of 8 plan options
  • Cover your spouse under the same policy
  • Longer Life cover till age 85

ABSLI DigiShield Plan

PROTECTING multiple life needs with one plan is now possible. UIN 109N108V05

  • 10 Plan Options to suit your varied protection needs
  • Flexible death benefit pay-out options
  • Life insurance cover for 1 year or till age 100 yrs

ABSLI Saral Jeevan Bima

A simple plan to protect your family’s financial future (UIN 109N128V01)

  • Simple & affordable plan
  • Flexible premium paying terms
  • Enhance insurance cover with rider

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