Financial planning for family

Guess the Bride’s New Best Friend – No. It’s Not Gold

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Riya was super excited to attend her best friend Meera’s wedding. But she was privy to a conversation between Meera and her mother about her wedding which became an eye-opener not just for Riya.

Here’s how the conversation went:

Mom: I will buy you jewellery worth Rs. 8 lakhs for your wedding.

Meera: Why?

Mom: What do you mean why? It’s what we give to the daughters on their wedding day.

Meera: But why just gold, why not invest that fund in FD, or even better give me that money I will invest it in ULIPs – Instead of jewellery which will just stay locked, the very next day of my wedding!

Mom: A phone or a bag will be of no worth after 2 years. But the value of gold only increases. It is an appreciating “asset”. Once you buy it, you can use it whenever you like, to raise loans against it, or simply to enjoy the higher value…And what ULIP I have never heard of this before?

Meera: Okay Mom, let’s say I need money in the next 10 years and I sell this gold for it – how confident are you that I will get a much higher value than today? Besides, what about the high-interest rates at pawn shops?

Mom: Why are you thinking so much? At least you will get the cash when you need it most, in a day’s time.

Meera: I am not over thinking. I am just being practical. If we invested this money in ULIP, I can reap its benefits after 10 years for sure. Edelweiss Tokio Life – Wealth Plus is a market-linked insurance plan aimed at wealth creation and has no premium allocation & policy administration charges.

Another useful feature of the plan is the ‘Premium Booster’. Premium Booster is added at the end of each year starting from the 6th Policy year till the end of the Premium paying term.

If you are a parent, your child becomes your top priority. You ensure that your child is always happy and (s)he is given the best education so that (s)he can fulfill his/her dreams. Edelweiss Tokio Life – Wealth Plus caters to these customers where the policyholder can avail the ‘Rising Star Benefit‘, where on the untimely death of the policyholder [the parent/grandparent], the nominee will get the lump sum amount immediately.

And if nothing happens to the policyholder? In such circumstances, on maturity, you get the Fund Value.

It is truly a new age plan because of its superpowers which provide the policyholder with an ideal opportunity of investing along with securing you and your child’s future in your absence.

Mom: But gold is not risky! Your funds are, and gold never loses the value it was bought at!

Meera: Investing in any fund becomes less beneficial if there are stringent terms associated with the fund. However, in the case of this plan, the investment terms are very flexible, and the policyholder is free to invest the premium in any of the available funds based on his/her risk appetite. This is termed as the ‘Self-Managed’ option.

The policyholder has the option to seamlessly switch between funds based on his/her choice. Also, your future premiums would be redirected to the newly chosen fund.

Mom: Why are you so argumentative? Don’t you want to look lovely on your wedding day? It’s your day to shine!

Meera: I don’t really care about what our relatives think, about the value of my “trousseau”. I would rather invest that money in ULIP so that I can get maximum returns after its maturity. Because Mom, my cost of living will require money. Not gold.

Mom: Ok my dear daughter, don’t get upset. I will give you that money. Invest it on your ULIP. I have understood investing in a plan like ULIP is more prudent than investing in Gold.

Meera: Thank You Ma. I love You.

Meera’s Mom understood the value of ULIPs. What about you?

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