What is the basic thumb rule in finance? Divide your post-tax earnings into three spending buckets – 50% for needs, 30% for wants, and 20% for savings. In other words, limit your annual expenses to 80% of your income and aim to accumulate at least 20% of what you made. The idea behind this ratio is simple: It instills fiscal discipline, helps you track your finances, and aids in planning your long-term goals.
Despite stark differences between boomers and millennials in financial planning and wealth management, both acknowledge the dividends of the 50/30/20 rule. Why has Gen Z decided to change course?
According to a recent study by Viral Fission, a youth community platform, about 32% of India’s Generation Z surveyed are more inclined to save money. The pandemic has arguably played a crucial role in such a dramatic shift. For many, it has changed our perspectives, pushed us to re-prioritise our desires, and made us more aware of our financial responsibilities. While we may not be splurging our hard-earned income into overpriced tickets, coffees, or handbags, it does not mean we are necessarily smarter with our savings.
In fact, our savings can even be our biggest liability if it is hoarded in our bank accounts and remains untouched until the next transaction. You can only sweeten your pie if you are smart with your investment choices. We live in an era where the hype around fintech overrides the golden value of traditional assets. Yet, we are spoilt for choice. Stocks, Fixed Deposits, Mutual Funds, Post Office Schemes, pension policies, recurring accounts, bitcoins, and cryptocurrency crowd the market. But nothing provides a safety net as secure as a life insurance policy.
The HDFC Life Click 2 Protect Super life insurance policy analyses your current situation and provides benefits in future in accordance to your changing lifestyle. This non-linked, non-participating, individual savings term plan will protect you and your family regardless of the direst circumstances.
Key features of the policy allow you to:
Get back all premiums paid on survival till maturity with the Return of Premium option.
Accelerate death benefit on diagnosis of specified terminal illnesses till 80-years-old.
Choose increasing death benefit up to 200% under Life option
Vary your death benefit according to your need under the Life Goal option.
Additionally, you can choose from the following three options for the policy:
Life Option: It covers the policyholder for death benefit during the policy term which can be accelerated in the case of diagnosis of a terminal illness.
Life Plus Option: Under this option, the policyholder is covered for death benefit which can be accelerated in the case of diagnosis of a terminal illness. But an additional amount will also be payable in case of accidental death during the policy term.
Life Goal Option: Under this option, the sum assured payable on death would vary with the policy year, in accordance with the ‘Level Cover Period’ and ‘Amortisation Rate’ as chosen by the policyholder.
It is time you took a look at your account statement, loosened your purse strings and started investing smartly to grow your money tree.
Visit here to learn more about HDFC Life Click 2 Protect Super insurance plan.
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