As a youth, when we start to earn, we have a lot of things to do in the initial stage only. Students loan to pay, EMI for a new car, rent, and many other things we have ever dreamt of, we basically want to fly over the sky. In the middle of the happiness and proud moments, we usually forget to plan our future, long-term and near future. There comes the importance of financial planning. It doesn't seem easy to plan your future in your very 20s, but it is essential.
Financial planning does not involve only long-term investments but also your near future. To save yourself from financial losses, you must have some insurance plans that can be proven to be life-saving.
Some of them are as follows:
Health Insurance- By analyzing today's atmosphere, pollution, junk food, unhealthy diet, wrong sleeping schedule, and no exercise life model, your health issues are taking lots of portion of the income. Taking health insurance in the 20s is beneficial as we have to pay less premium than elder ones. It would be best to go for health insurance according to your genetic diseases, health history, and regular diet. Also, if you take health insurance, some companies provide various rewards if you take care of the body, like regular exercising and following a proper diet.
Vehicle Insurance- When we start to earn, the very first thing we do is buy our favourite vehicle. We can never foresee the uncertainties. Having vehicle insurance can save us from unpredictable financial losses due to accidents. Motor Vehicles Act, 1988 also mandates it, and as a smart vehicle owner, you must buy a comprehensive motor vehicle insurance plan.
Life Insurance Policy- It is a misconception in every Indian family that every member should have life insurance coverage, but it totally depends on risk-bearing capacity. If you are the family's earning member, you must buy a life cover; otherwise, you can choose other attractive investment options.
Critical Health Insurance Plan- Critical health diseases like kidney failure, cancer, heart attack, etc., will take up all of your savings and investments. These unpredictable diseases will harm you financially and emotionally. You cannot cover up the emotional loss, but financial stability can be preserved. Regular health check-ups can help you keep posted about your health, and you can decide your insurance plan accordingly.
Additionally, yearly health check-ups can get you deductions under section 80D of the Income Tax Act up to INR 5000. Also, you can avail of tax benefits on preventive health check-ups for your spouse, children, and parents.
These are some of the insurance plans you must have to save your near future and long-term as well. As you become older, your health insurance premium gets higher as chances to claim insurance amounts are much higher than younger ones. It's beneficial to have medical insurance to save yourselves financially, motor vehicle insurance plans to protect your unforeseen accidental damages, and life insurance to protect your family.
Before making any financial decision, take advice from a professional financial consultant.