will have to initially work out the amount that they spare for the premiums of the policy and compare it with their need for cover. Expert advice from financial planners can also be sought in this regard to get a more accurate estimate of the requirements vs. funds available.
The very nature of life is unpredictable. There may be several unforeseen contingencies requiring money such as sudden loss of job, health problems, car repairs or house renovations. Even one may have to cater to health problems of the parents of either of the partner’s parents at a short notice. While prior to marriage the need for emergency funds was limited to own needs only, post marriage this must cater for the combined needs. Thus an emergency fund that is approximately half a year of expected family expenses must be kept aside within easy and quick access.
Financial success of a family depends on equal effort and team work from both the partners that would ensure financial stability and success over a long period of time. The couple has to invariably learn how to spend smartly and save a decent sum of money so as to achieve financial freedom and security at the earliest.
—The author is CEO, Bankbazaar.com