Do you have plans to go abroad?
Before you go, make sure to have a plan to provide for your
financial stability by the time you return to your country. How to make
investments here to achieve your goal? What precautions are needed to be taken?
Did you plan to provide for financial protection to your near and dear, who
depend upon you?
It
is natural aspiration for people to go to developed countries, secure a job
there and make good earnings. Nowadays,
it has become a routine for Indians to go and do jobs in foreign countries.
With the standard of expertise and commitment, Indians are the most sought
after in the entire world. But the million-dollar question is that how long can
we stay with our job there? It is very difficult to predict the timing and
which country would sink into which type of economic depression. At the same time
the growth rate in India is stable with 6 to 7% per annum. In this background,
people getting employment opportunities in
foreign countries should so plan to get a good yield by the time they return,
simultaneously taking care to see the dependent parents are economically
supported. Our Bank deposits give higher returns than foreign Banks offer,
which is the main attraction for our NRIs to invest in fixed deposits in our
country.
There
are multiple choices for NRIs for designing their financial plans. Depending on
their financial status and responsibilities, the mode of each investor’s plan
varies. Same principle applies to NRIs. Diversified investments in secured
sectors would give peace of mind and confidence for a happy retired life. Here
comes the utility of insurance
policies. There are a number of types life insurance plans designed
to suit the varied needs of the policyholders. Simply select the type of policy
that meets your needs.
Here is an example…
Ashok
is aged 40 years. He is working as Senior Project Manager in a software company
in London. He has got two children aged 9 and 5 years. His wife is Asha. She is
a housewife. His parents are senior citizens, residing at Hyderabad and the
entire responsibility to support them is on Ashok. Let us examine which type
policy would suit to his needs.
*
Family should get sufficient financial protection in the event of happening of
an untoward incident.
*
A policy that takes care of his Children’s education.
*
Provides regular income to his Parents for their maintenance
*
For growth of property for his and his life partner’s enjoyment.
Best Financial Protection…
Five
people are dependent on Ashok. Should therefore plan to have the best financial
protection in any type of adverse event, for which ‘Term’ policy is the best.
Presently, almost all insurance companies are making it available on-line.
There is no cumbersome procedure. Moreover, discount in premium is also
available. Depending on the income, if a ‘term’ policy is taken on his life, he
will be rest assured for the complete financial protection for the needs of his
family.
Policies for Children’s Education…
Expenses
for children’s education are escalating day by day, for which proper investment
has to be made, otherwise their education phase may get upset. To avoid such
situation one should plan for it.
*
A policy that takes care of children’s higher education and at the same time to
get periodical instalments of specified amounts.
*
In case some unfortunate incident happens to Ashok, there should not be any
break to his children’s education and
withstand the financial strain – a policy to cover these events must be taken.
It
is always advisable to go in for Children’s policies made available by life
insurance companies. There is a lot of difference between ordinary policies and
children’s policies. In children’s policy, if the insured event happens, the
claim amount will be paid to the nominee and no further premiums need be paid
from then. What is more, the full sum assured will be paid on the date of
maturity of the policy.
Old Age Protection plans…
Presently
he is earning well, leading a happy life. But, in a man’s life a day will come,
when the flow of earning may decrease or even stop. What to do to face such
events? Systematically plan for it from
now on. Go in for long term investments and at the same time they should be
diversified i.e., not to make the entire investment in one company only. As a
country, in the developing phase in the financial sector, there is the
possibility of getting good returns if invested in equities, in our country.
Offer of the twin benefits of investment and life protection is available in
Unit Linked Insurance Plans (ULIPs). Equities and Debt Funds having the
capacity to absorb the losses can be selected for your investments. It provides
for spending a happy and peaceful retired life. Intermittently the share values
may oscillate up and down, but in the long run, we can hope to get good income.
NRIs can use these long term investments for growth in their wealth.
For Regular Income
Ashok’s
parents are residing in Hyderabad. They should get regular uninterrupted income
for their maintenance. ‘Immediate Annuity’ plan is best suited for this
purpose. Paying a single premium at the
inception by him, his parents get specified regular income every month. It
relieves the stress on him. In case his parents expire, he can get back the
invested amount. He can utilise this amount for investment in another plan.
Published by Wise
Money Management
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