The best gifts you can give your loved ones are financial stability and education. It will help them realise the importance of money, plan for the future, accept uncertainties boldly, and live happily. There are many ways to offer financial gifts to your loved ones. You can plan, calculate and devise the right strategies to ascertain the financial benefit. Here are a few gifts you can consider providing them in the long term.
5 Best Financial Gifts for your Loved Ones
Here is the list of the best financial gifts for your loved ones:
- Insurance – Life insurance as a gift is one of the most important financial protection you can provide to your children. You might be taking care of their living and education expenses. In case of your unexpected demise, you need financial support to ensure their education and other expenses are fulfilled timely.
Gifting a life insurance policy will satisfy all the needs if planned and purchased appropriately. For example, if you purchase the term insurance life cover, your insurance provider will offer the lump sum death benefit to your loved ones in case of your unexpected demise. You can calculate the extent of funds required based on the commitments and decide on the sum assured for the term life insurance.
Your loved ones just need to provide your term insurance details to receive the payout in your absence. Buy the term plan early in life to accumulate a huge death benefit at an affordable premium considering a longer policy tenure.
- Savings fund – Term policy can ascertain financial benefits in your absence. Suppose you want to accumulate a savings fund. In that case, you can choose the comprehensive life insurance plan that provides a life cover for the policy tenure and a savings benefit at maturity.
The savings benefit is a guaranteed return at the end of the policy. Therefore, you can calculate the funds required to accomplish a money goal for your children, decide on the approximate funds and invest in them accordingly.
- Wealth creation – Investments that increase your wealth will be a valuable financial gift to your children, considering the inflation rate. You can invest in a comprehensive life insurance plan such as the ULIP plan that combines the benefits of life insurance and market-linked returns at maturity. For the market-linked returns, you need to invest in the financial securities based on your risk appetite and stay invested in the long term to reap maximum protection and wealth.
- Gold – Investing in gold is a good financial gift because it has consistent value. It is therefore considered a safe investment method. Also, if severe economic downturns or market conditions affect the fund value, gold will recover its value sooner than other products.
- Financial education – Providing financial education to your children can be the most practical and valuable financial gift you can offer your children. It will increase the awareness of different financial products and help them plan for investing in them in the long term. If they learn to invest in it early in life, they will benefit from choosing a longer policy term while also regularly developing the discipline to save money.
When purchasing financial instruments, choose products that offer flexible features. It will help in customising the solution based on increasing financial demands. For example, when you purchase the Tata AIA term policy, you can increase the sum assured at different milestones in your life.
Conclusion
Providing financial gifts to your loved ones can be the best investment. It can help them manage financial crises during uncertainty and plan for their future financial goals. You can purchase a term plan to ensure a lump-sum death benefit to your loved ones in case of your unexpected demise and invest in a savings plan or financial securities to increase wealth. Finally, providing financial education at the right time will increase their awareness and plan for their finances effectively and efficiently.
