Ever asked yourself - Who will take care of your family in your absence? How will they meet their financial requirements? Day to day expenses? Emergency funds? Medical expenses? It is natural to wonder how your absence can create a huge hole in your family’s financial and emotional future. In these situations, you can assure their financial well-being and guarantee a solid financial future by opting for life insurance plans.

Your financial planning should be formulated to meet not only their lump-sum expenses through a sum assured payout but also their daily needs with structured payouts. Some of the critical financial planning tips that can aid in improving your family’s future financial well-being include:

1. Make an Expense Checklist
   One of the most effective financial planning tips to ensure your family does not face a monetary setback and you can ensure their financial well-being is by making a checklist of the expenses that are mandatory and what you need to make provisions for. For expenses such as children’s fees, monthly debt repayment obligations, basic requirements and necessities, utility bills, and other discretionary expenses such as entertainment cost, you need to ensure that sufficient funds are maintained or obtained every month so your loved ones can survive and meet their daily needs. 
   
2. Term Plans with Payouts
   Investing in regular term plans has its own advantages. Term life insurance plans provide you with the advantage of obtaining a higher sum assured and coverage by paying a relatively lower premium for a fixed term. However, if you consider your family’s financial well-being, you may not just “need” a sum assured but also daily income for operations. In such scenarios, you can opt for term plans with monthly payouts.
   There are numerous plans available that not only ensure that your family gets monthly income to manage their monthly expenses at a low premium but also provide you benefits of tax-deduction under Section 80C of the Income Tax Act, 1961 that can go a long way in your financial planning. Though there are numerous financial products available in the market, term plans are ideal for households with a single income and the main breadwinner.
   
   These income protection plans take the rising cost of inflation into perspective to ensure their income is adequate to meet expenses with the change in times. Further, many term plans are also available that make payouts on an increasing trend every year after considering the inflation rate. 
   
3. Endowment Plans
   Another viable financial planning option is endowment plans which not only serve the purpose of life insurance but also combine the benefit of savings under it. This plan ensures you save regularly and have a lump-sum amount saved at the time of maturity. This amount is saved for a specified period of time and is released even to the insurance holder at maturity. 
   
4. Other Financial Tools
   Though, term insurance is the most affordable and favourable life insurance plan; other plans are available to suit every member of the family and to ensure each one’s financial well-being. These include child insurance for your child’s education or marriage, investment plans that help you build a substantial corpus over a period of time, health insurance that offers coverage for illnesses or ailments, woman insurance designed specifically to suit women, and pension plans to generate post-retirement income. Each of these products is unique in nature and multi-dimensional in their individual characteristics and specifications.
   
   One important financial planning tip you need to understand is not that you need to avail life insurance but ensure that you procure sufficient coverage on the plan. Care needs to be taken that the insurance you avail does not leave your family under-insured. You need to take into consideration the various expenses, both daily and lump-sum, and keep in mind the change in the rate of inflation to safeguard your family’s financial well-being.
   
   

Securing your family’s future by controlling impulse spending, repaying existing debt and not availing more, investing in your and your family’s financial future, evaluating your expenses rationally, and paying bills on time can go a long way in ensuring their financial well-being even in your absence.

Visit PNB MetLife to know more about life insurance, Term Insurance & Term Plan