Finance
When it comes to financial planning, people tend to assume that the term simply covers a systematic way of saving money for a rainy day. Saving money is one aspect of financial planning, but others like smart investing to improve investment returns, protect their income from taxes, cover funeral expenses, etc.
There are certainly many questions when it comes to financial planning. Here are some and their answers.
Is Financial Planning Just About Saving Money?
Directing a portion of the income into savings is important in financial planning, but so are smart, profitable investments and risk protection in the form of life and health insurance.
Should I Invest In Debt Funds Or Equity Funds?
Investing in debt or equity funds depends on how much you want to invest and the risk you are willing to take. In general, if your financial planning requires you to be very careful with your investments, you should choose a debt-based fund, where the company has a legal obligation to pay investors. On the other hand, equity funds are very closely linked to the market and interest rates can fluctuate during times of volatility in equity markets.
Which Insurance Should I Choose?
Taking out whole life insurance is considered an important part of financial planning as it provides some protection to your dependents in the event of the policy holder’s death. In addition, senior life insurance also covers funeral and burial expenses, which reduces the burden on the family.
Do I Need Health Insurance?
With the rising prices of primary care services, not to mention the almost astronomical cost of surgical procedures, it is important that you protect yourself and your family with good health insurance. Talk to your agent about what the policy covers so you get the maximum protection for the premium you pay.
