Most of us will probably get away with simply wishing our parents on the telephone, send them a card drawn by one of their grandchildren or, if you’re lucky to be in the same city, take them out for a meal. Celebrations are over, day forgotten. But is that all we should be doing? Is that enough gratitude to repay the blessings of our parents, who have spent their entire lives and probably, their entire fortune, to help us become independent?
Parents are never demanding but that doesn’t mean we cannot be given. And I’m not referring to seemingly intangible emotions like love and respect. It’s our turn now, to help them stand on their own feet and be the support they need. When was the last time you asked your parents if their pension was keeping pace with the price of inflation? Have they started living the life they’d always dreamt they would in their golden years or are their sacrifices continuing?
It’s time to give our parents the life they gave us, and more! We should aim to make them financially independent.
Inflation Has A One-Way Trajectory
And that is, up! The cost of living is getting expensive day by day. Add escalating health costs to this, and the kitty will run dry without any opportunity to be refilled. Needless to say, financial protection offers peace of mind. You do not want your parents to be worrying about day-to-day expenses in their retirement. They may not have the means, simply because they did not have access to the variety of financial planning services that you are fortunate to have today.
A good annuity plan assures your parents a regular income throughout their lifetime. It helps them cope with healthcare costs and stay ahead of inflation through their retirement years. The policy can be customized as per your specific needs, such as the type of annuity preferred, when you want to start receiving the income and the financial support for critical illnesses. Some annuity plans also offer an escalating annuity option, which takes care of inflation and can give your parents control over their future despite their increasing age.
We Take Retirement Seriously
We never really think of our parents retiring as it seems so far away in the future. That’s because we can never really think of our parents getting old, or we do not want to accept the fact that one day, they will need our support; we are so attuned to it being the other way around. At IndiaFirst Life, we believe that whatever age or stage you are in, life should be full of certainties. This is why our retirement plans are structured to protect you from every expected and unforeseen circumstance.
Appropriately selected retirement plans guaranteed financial protection plan for your parents’ second innings. It offers you the option to earn guaranteed returns for the initial years in the plan and an opportunity to further build your retirement corpus through a bonus, thereon. An insurance-investment endowment pension plan enables you to consistently save small amounts of money over an extended period so that your parents can get guaranteed income during their golden years. Spreading the premium across smaller amounts rather than a one-time lump sum payment eases the financial burden and makes the policy more affordable.
Starting Young Helps You Save More
Both the above-mentioned options can be bought at any age. In fact, the earlier you start, you get the benefit of a lower premium. The cost of postponement can be crippling and possibly, make catching up’ impossible.
Tax Saving Is Money in Your Pocket
The premium paid on a life insurance policy is tax-free under section 80C with a maximum exemption amount of Rs. 1.50 lakh. Whether you take the policy as part of your parents’ retirement plan or your own, the savings can be further reinvested into another insurance policy for additional benefits.
When we’re young, parents’ guide us every step of the way to be prepared for the future and the challenges it brings. However, old age is something very few are prepared for. So, it’s not only our duty as children but also their right as parents to be cared for and provided for in their sunset years. We can certainly make our parents’ comfortable and secure with a strong financial foundation. It doesn’t matter how old or young you are, or how old your parents are. It’s never too early or too late to invest in an insurance plan.
Parents aren’t the people you come from. They’re the people you want to be when you grow up and they grow old. Therefore, the gift of certainty is the one gift your parents will always appreciate.
By Rushabh Gandhi, Deputy CEO, IndiaFirst Life Insurance