Among all other things, financial planning is a very important aspect of anyone’s life. This becomes even more obvious when two different people need to start planning their finances with some common objectives in mind. Therefore, as a newlywed couple, financial planning has a lot to do with the joint as well as individual savings, investments, and long-term financial goals. And because life insurance is an essential part of one’s finances, life insurance for married couples can be a great way to start.
For example, newlyweds can start saving in a life insurance savings plan, keeping in mind their financial goals for the future while also receiving adequate life insurance coverage. Such plans can also be used as a regular income plan for the post-retirement years as they ensure guaranteed1 returns.
While making a financial strategy with your spouse fresh into the marriage can seem difficult, here are some financial tips that can make the whole task a lot easier:
- Synchronise your goals:
While, as individuals, it is perfectly fine to have your personal viewpoint in finances, after marriage, it is important to consider the ideas of your partner. If both partners decide on a few common investments and savings plans, and the purpose these funds will serve, it becomes easier to achieve these goals.
- Start with the basics:
Some of the financial planning can be as basic as sorting out which bills are to be paid by whom. Once these small things are clearly defined and are out of the way, a couple can move on to bigger plans.
- Discuss financial obligations:
Many a time, people have loans and debts to be paid of even as they get married. While this is not something one should worry about, one’s partner should always be aware of these financial obligations. One may also choose to contribute and help settle their spouse’s debt earlier to save money on penalties.
- Practice financial restraint:
Unnecessary expenditures are bad for everyone’s pockets, even more for married couples. While it feels great to spend on entertainment, maintaining a budget always helps in ensuring that the expenses are under control.
- Plan an emergency fund:
The advantage of building an emergency fund as a couple is that both partners can pitch in some amount over the long term to accumulate funds for an unforeseen situation. Such savings can help take care of sudden medical expenses or even something as joyful as a long vacation.
- Examine your health-care package:
As young, healthy couples, diseases and ailments may seem to be distant possibilities. However, that should not bring down your guard. At such times, including a critical illness benefit with one’s life insurance coverage can be useful for future and probable critical ailments. Also, if one of the partners has a health insurance plan, they can convert it to a family floater to ensure coverage for both partners.
- Examine tax* benefits:
If you and your spouse opt for a long-term savings plan or any other type of investment or savings scheme, be sure to understand the tax* benefits of these plans. The tax* benefits on the premiums as well as the sum assured of insurance plans can help you save more money even while availing the benefits of a life insurance cum savings plan.
Is insurance necessary for couples?
Life insurance plans have a Joint Life option, under which one can get life insurance cover for their spouse. While both partners can have separate insurance plans, such policies allow for joint coverage and make it easier for both of them to be protected under the same plan.
While planning for a life insurance policy, it is also essential for both partners to synchronise their financial objectives, so that having a common insurance policy can equally benefit both.
How much savings should a married couple have?
In the event of a financial disaster, a person or a couple’s accumulated funds help to determine how well they are prepared to deal with that situation. The problems caused by financial strain or tension can be conveniently met if the couple has saved enough over the years.
To understand how much one should save, consider all possible expenses that may need extra monetary aid. This can be anything from a sudden medical emergency or unemployment to an urgent but obligatory business trip or taking care of ailing parents.
On average, it is advisable to have at least six months or a year’s worth of income at hand when it comes to understanding how much savings a couple should have. Or, as a part of the financial planning, both partners should chart out a plan where they consider their expenses, needs and goals to understand the actual amount that should be saved.
Going by the above estimates, it is only through a useful savings plan that one can accommodate their goals. A savings plan like enables a guaranteed! regular income in times of need. Not only can you buy life insurance for yourself and your significant other but also build a financial fund for a later date.
Advantages of a long-term savings plan
Apart from having the obvious benefit of helping one in accumulating and saving wealth, a savings plan also offers life insurance cover and can be enriched with the help of riders# to cover critical illness or accidental death or disability.
Savings plans, by virtue of being insurance plans, also come with a host of tax* benefits. While the premium payments of the policy are eligible for tax deductions under Section 80C of the Income Tax Act, the guaranteed1 sum assured is exempted from taxes under Section 10(10D) of the Income Tax Act, 1961.
Conclusion
Marriage is a life-long phase that has its ups and downs. However, getting your financial planning under control with the help of your spouse can smoothen out a lot of wrinkles. All it takes is for the two partners to sit down and have a healthy discussion about their finances, their expectations and their roadmap to achieving these goals.
L&C/Advt/2023/Mar/0872