In chronological order, the foremost is to understand the best possible investment given your resources and vision for the future. This is important because your investment has a direct bearing on your Taxes. More often than not, we end up making an investment that falls under a higher taxation slab than the returns it yields.
For instance, investing in residential property may seem like a viable option, however, the returns it may yield may be up to 10-15% and the taxes paid will be somewhere around 30%, this leads to a loss. Therefore, it is important for us to review our options for channeling your money in the most efficient manner.
As the name suggests Insurance assures us or our dependents of monetary benefits upon investment for a given period of time. Earmarking a certain amount from your earnings every month to allocate in Insurance will give you peace of mind and the knowledge that even after your life, your loved ones will be taken care of. There are different types of life insurances. For example Health Insurance etc.
The most effective out of the insurance options being Term Insurance, it's a policy under which up on payment of a certain policy amount every month for a fixed period, the beneficiary appointed by the policyholder gets monetary benefits if the latter dies during the term of the policy. The terms of this insurance are extremely flexible. For example, the policy holder can add 'riders' to the plan, the term of the policy can be increased thereby reducing the volume of each payment. You can consult insurance companies/agents and understand this in detail.
Insurance is a very important aspect of financial planning. It assures security not just for your but for your loved ones. Allocate your earnings towards the security of your family and dependents.