Why an SIP Makes a Perfect Wedding GiftSECURE THEIR FINANCIAL FUTURE Why you should start an MF

investment or give a new couple an insurance cover

Contd…The wedding season is on and you are juggling gifting options in your mind. Why not give the new couple something they will cherish for years. Start a mutual fund SIP for them or buy them a life or health insurance cover. Yes, insurance policies don't seem very appropriate as wedding gifts because they relate to unpleasant situations. Mutual funds don't evoke the same feeling as hard cash. But these gifts can transform the lives of the couple and put them on track to a secure financial future. If the groom is around 30 years old, a term insurance cover of `1 crore for 30 years will cost around `10,00011,000 per year (see table). Tell them that you are paying the first year's premium and they will have to renew the plan in the following years.Many people consider term plans a waste of money because these pure protection plans don't have a maturity value. If you think the couple might not continue the policy , go for a single premium plan. The entire premium is paid at one go, so there is no chance of the policy lapsing. But single premium plans are very costly. If your budget is smaller, go for a lower cover and shorter tenure of 20 years. But an insurance cover that ends when the person is in his 40s or 50s is not very useful.

Contd…Similarly , a health insurance policy for the couple is a perfect wedding gift. Why , if the couple plans to start a family in about 2-3 years, you can even give them a policy that covers maternity expenses. Such policies have a waiting period of 1824 months before maternity expenses get covered. A health cover of `5 lakh, which also includes maternity expenses, will cost about `8,000-9,000 a year.Starting a mutual fund SIP may not be on the to-do list of a newlywedded couple. But if you start one for them, their bank will ensure that they continue investing in the fund. It will not only secure their future but inculcate the saving habit and investing discipline in them. Choose a good diversified equity fund and rest assured they will get good returns.But there are regulatory hurdles in this path. Insurance companies don't accept application forms from people who don't have an “insurable interest“ in the person and mutual funds don't accept cheques from a third party . This means the couple will have to apply for the insurance cover or the mutual fund.

For details and bookings contact:-

Parveen Kumar Chadha… THINK TANK

(Founder and C.E.O of Saxbee Consultants & Other-Mother

marketingandcommunicationconsultants.com)

Email :-saxbeeconsultants@gmail.com

Mobile No. +91-9818308353

Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015