A pension plan or retirement plan is a type of investment plan, which helps you to accumulate a part of your savings over a long-term period so that you can have a secured financial future. A pension Plan helps you to deal with the uncertainties post-retirement and ensures a steady flow of income after retirement. Even if a person has a good amount of savings, a pension plan is nevertheless crucial. A pension plan helps you to create a financial cushion in the long term so that you can ensure a financially sound future after retirement. In a retirement plan, the insured needs to contribute a specific amount regularly until the time of retirement. The accumulated amount is given back to the insured as a pension or annuity at regular intervals of time. The pension plans not only secure the financial future of the individual after retirement but also help an individual deal with the eventualities post-retirement.
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Life insurance is the most common form of insurance where you pay the premium for the pre-decided term. If you pass away within the term period, the money you are insured of is given to the family. Unlike term plans, whole life insurance or endowment plans pay upon maturity as well if you outlive the term. One is to pay the premium up to a certain time. The family gets the money upon the untimely death of the insured. Family is what makes a house and they depend on you for everything whether it is money or support, and when you will not there then what will happen to them? The importance of insurance is to provide your family with long-term financial security. Insurance policies provide a lump sum of money to financially support and grow as you progress through your life stages. Life stages refer to the multiple major stepping stones like marriage, childbirth, education, house, world tours, etc.
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Health is the greatest blessing for all human beings. Good health is central to human happiness and well-being that contributes significantly to prosperity and wealth. Every aspect of life is dependent on good health. Due to changing, lifestyles health issues have escalated. Every individual is aware that the number of illnesses is increasing day by day and so are the related costs for treatment. A health insurance plan reimburses insured customers for their medical expenses, including treatments, surgeries, hospitalization, and the like which arise from injuries or illnesses, or directly pays out a certain pre-determined sum to the customer. This is an agreement between the insurance company and the customer where the former agrees to guarantee payment or compensation for medical costs if the latter is injured or ill in the future, leading to hospitalization.
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The financial advisor is also an educator. Part of the advisor's task is to help you understand what is involved in meeting your future goals. The education process may include detailed help with financial topics. As you advance in your knowledge, the advisor will assist you in understanding complex investments, and insurance. The role involves researching the marketplace and recommending the most appropriate products and services available, ensuring that clients are aware of products that best meet their needs, and then securing a sale. Advisers may specialize in particular products, depending on their clients, such as selling employee pension schemes to companies or offering mortgage, pension, or investment advice to clients. Others are generalists, offering advice to clients in all of these areas, as well as saving plans and insurance.
The insurance plan might not seem like a good idea because a child does not have financial value nor are there any liabilities or dependents. Child Education Plans are investment cum insurance policies provided by insurance companies. These are marketed as investments that allow parents to save for their children’s higher education expenses over the policy term while additionally providing financial security to the child in case of the parent’s untimely death. A portion of the premiums paid for the plan is used to provide life cover, while the remainder is invested in Equity or Debt instruments to help save for the higher education requirements of the child. In the case of a Child Education Plan, the life insurance coverage is extended to the parent. These insurance plans mature, and the final payout occurs when the child turns 18.
