It’s a given—parents work hard to provide well for their families. But it’s not enough to earn money for your daily expenses. To meet your family’s needs both today and in the future, consider investing to make your money grow.
It can get a little overwhelming and confusing when you try to figure out your family’s long-term finances. How much is enough? How can you protect your loved ones financially? You can start with these five financial plans that can help give your family a secure and healthy financial future.
1. Life insurance
Money in savings accounts grows at a glacial pace. If you want your funds to grow faster, consider life insurance plans with investment earnings. They let you grow your money while providing financial protection over the course of your lifetime. They also provide benefits for your loved ones in case anything unfortunate happens to you. Aim to have one per parent.
2. Health insurance
Medical bills may one day eat up a huge chunk of your expenses. With skyrocketing hospital and professional fees, it may get worrisome to figure out how to factor in health-related costs. You may opt to get health insurance plans so that you won’t have to worry about shouldering expensive treatments and medical fees. While your employer may provide health coverage for both you and your family, consider signing up for your own health plan.
3. Educational plan
Educational plans provide you with financial help to sustain your child’s education needs. Some, like Insular Life Education Packages, are investment-linked insurance plans that also provide funds that you can use for your child’s education. Insular Life Wealth Secure Education helps you save regularly and gain competitive earnings, while Insular Life Wealth Assure Education offers premium savings and faster fund growth.
4. Emergency fund
It’s tempting to splurge when you’ve got extra cash, but you should also think of tucking some away to build a safety net of funds. Experts advise having at least six months worth of expenses saved up to get your family through unforeseen events that may impact your monthly income. This can be a simple savings account that you deposit in regularly, or it can also be an account specifically for emergencies.
5. Retirement plan
After working hard all these years, there will come a time to relax and indulge in some R&R. Celebrate graduating from the workforce by reaping the benefits of a retirement fund. You can make an estimate of your future cash flows and expenses, and come up with a retirement goal years before your actual retirement. Get a jumpstart on a happy and stress-free retirement by saving now. With a little nest egg for yourself, you can also help with your family’s needs while still having the means to spoil yourself a little.