Superheroes are cool. No matter how old or young you are, watching your favorite character is still exciting. Many of these heroes seem to be perfect, whether it’s their clothes or their morals or even the way they comb their hair. But their hero status could be tarnished if they had to take out unneeded bank loans or sign up for credit cards.
Right now, you’re a hero to your young family members. You enter the front door, and they come crashing at you for hugs and kisses. They admire you. But what makes you a hero? If you spend enough time with your family and share those tiny little moments for bonding, then only you can be a hero for your family.
You can only spend time with your family if you have balanced work-life and have financial stability, i.e., your needs, goals, and aspiration are full filled. But it’s hard to gain financial confidence, not if you will buy a term insurance plan, it will not only provide you financial stability but even after your untimely demise, it will take care of your family’s needs and goals.
Now the question arises what a term life insurance is?
Term Life insurance is the purest and most cost-effective form of life insurance, which offers financial coverage to the policyholder for a specific period. In case of your unkindly demise, during the policy term, the death benefit is paid by the company to the beneficiary. The Term Insurance provides the highest life insurance coverage at the lowest premiums.
For, e.g., Premium for `1 Cr Term Insurance cover could be as low as Rs 945 per month. Premium amount varies the basis on the type of the premium payment method opted by the buyer.
In your absence, not only your family remains financially independent but can also fulfill its future needs and goals.
Being a financial hero is a challenging thing to do. But the good thing is you can become a financial hero for your family, and it does not involve any costume change in a phone booth. Here are some points to think that can you aspire to be your family’s financial hero:
- Set some funds for helping your family
If you are always called upon to help financially, you should always set some funds aside to help your family. Make sure you come up with separate funds primarily for helping your family other than your emergency savings and long-term savings funds, whenever you are making your budget. In the time of need, you can opt to these separate funds without having to dip in your savings. This type of proactive approach will benefit both your family and you.
- Protect yourself
Before helping others, make sure you protect yourself against life’s uncertainties. If you have any dependent, make sure you get a term insurance plan. Also, consider accident and disability insurance.
These policies will ensure that after your untimely demise, your family will not be burdened and there will funds that will fulfill their basic needs and goals. Also, you should buy medical insurance, which will cover your hospitalization and treatment expenses if you get sick.
- Start investing your money
Make sure you invest your money and take a long-term approach to your finances so that you can continue to build your retirement fund. Invest your money regularly, so that your money can work for you.
There are many investments options available these days for small investors. These are UITFs and mutual funds, you can invest an initial amount as low as Rs 5,000, and which you can top up for as little as Rs 1,000.
- Make cuts when needed
It is easy to get emotional and make cuts so that you help your family in the time of need. You should know your expenses, which are essentials (needs) and non-essentials (wants). Learn to prioritize your expenses before making an arbitrary cut, so that you don’t end missing out on essentials.
For example, instead of full filing your utility or credit card payments, you are enjoying expensive dine outs with your family so that you can play their hero. This will only lead to damage your credit standing or worse, getting into a debt trap.
- Do not encourage overdependence
Do not sacrifice your financial security so that you can be a family member’s knight in shining armor. Make sure your family members have not developed a dependency on you. Make sure they are coming to you after looking for all possible ways to meet their financial needs.
Help your family members (especially your children) to be financially independent by helping them find part-time jobs or entrepreneurship opportunities. This will not only decrease their dependency on you but will also make them a better person as they will address their financial needs themselves.
Do What a Hero Does
Being a hero means you stand up for your dream and help others, but it also means you stand up against wrong and do what is required. Part of being a hero is always saying no when needed. Do not afraid to say no, especially if you cannot help, or if you feel that call for help is not urgent.
You cannot help others if you are financially incapacitated. Prioritized your expenses, buy a term insurance plan, decrease unnecessary costs. Indeed, your retirement fund deserves to come ahead of any request for money to buy new shoes or some gadget.
To become a financial hero, you should have
It’s up to you, financial hero. Your children already think of you as a superman. Its time to prove them right.