Saving money in the conventional manner isn’t going to make you rich in the future. It is important to have a strong financial investment plan to help the money grow. In the modern days, investment is the best way to make money grow in numbers. Even though the growth might not be exponential but the right investment plan can ensure steady growth over a long period of time. Investment can be both long term and short term. The choices of an individual are entirely dependent on their own mindset and thus needs to be planned accordingly. Short term investments account for lower returns while long term investment in general can bring forth exponential returns.
These thumb rules ensure that investment turns out to be a very easy affair even if you are not aware of the basics.
• Life insurance
The most crucial aspect of one’s future is the fact that it is unpredictable. Nobody can be assured of their future as they are never really aware of what is bound to happen. It is thus important to secure the future of oneself and their loved ones as well.
Life insurance policies help to cover your loved ones and any of your family members. While nobody can be assured of their future, it is best to remain prepared. Life insurance covers that provide for 5 times the returns on the annual investment are good options. They will cover your family even after you are gone. It is among the easiest and best ways of securing the future of your loved ones.
• Accidental insurance cover
Being out on the street, there is no possible way to ensure that you will not come across an accident. Medical bills can be a huge problem especially if the amount is on the higher end. Accidental insurance covers can help you combat such a situation if it may arise.
Accidental insurance covers most of your medical expenses depending on the plan that you opt for. In any case however, the financial burden in case of a medical emergency involving an accident is lessened significantly if you are covered by an insurance plan. You may also like to read about Total Protect Home Warranty.
• SIP (systematic investment plan)
SIP is one of the newest entrants into a market and has been envisioned as one of the best ways to grow money through investment. The best scenario involving an SIP is the fact that you can start investing with a very low amount as there are several SIP plans orchestrated for lower investment.
There is a risk quotient involved with SIP investment, but a systematic investment plan over a long period of time can yield greater benefits. You can opt to make small investments in several SIP plans to get the maximum out of your returns. The key to SIP is investing small amount monthly over a long period of time.
• Medical insurance or “medi-claim”
While the accidental insurance covers you in case of accidents only, a medi-claim or medical insurance will provide for life long coverage in case of a medical emergency. For instance if a person is diagnosed with a life threatening disease, then the medical insurance will cover almost 80% of the costs incurred in the medical treatment.
The same applies if the person incurs a medical emergency due to an accident as well. It is among the best ways to stay secure and protected from the burden of hefty medical bills.
These 4 thumb rules of financial investment ensure that your future is secured along with that of your family at the same time.