In this modern age the number of working couples is increasing manifold in metropolitan and second tier cities of India. Joining of women in the workforce has its own economic and societal advantages and, in the quest, to achieve it, the government, various institutions and corporate companies in our country had promoted the same over the last decade.
Considering the high levels of inflation and cost of living skyrocketing in almost every city of India, couples also want to earn more to fulfil their needs and wants, get financial freedom and a better and secured future for the whole family.
To achieve the same both husband and wife are starting doing some work either full time or part time in every nook and corner of the country.
There is a saying by one great investor of all times that you should spend what is left after saving every month and not vice-versa. Working couples should definitely save money and make it a habit in their earning days of life and what better option could be than purchasing insurance products as per future planning and goals.
Insurance products are not only good in saving but also protects our family and loved ones in case of a variety of untoward incidents and unlucky mishaps. So, for every family some part of their income must go in purchasing insurance products and paying premiums regularly in addition to other investment and saving tools.
In this article we will explain about how should working couples approach planning the insurance part and out of their annual income. Although there comes a wide variety of different insurance products covering simple and complex risk, we are going to discuss only that products which are a must have for a modern day family especially working class.
It is very likely that both husband and wife will have their own group family floater health insurance covering all the family members (self, spouse, dependant kids and parents) provided by the respective employers. Being two separate group policies covering the same family members may look like a decent sum insured and sufficient coverage but one should think of taking a separate family floater insurance at young age because after retirement or once you quit the job for any reason the employer provided plan will cease to exist.
And at the old age taking a policy is not only very costly but with restricted coverages as well. Working couples can plan for a health insurance product with lower sum insured initially and use the employer provided group health plans to claim if needed, so that the no claim bonus under the health plan purchased from pocket accumulates year after year and serve the family after retirement.
Frankly speaking the need for purchasing a term plan reduces when both husband and wife is earning because in case of unfortunate demise of one the other is capable enough to look after the family. But there are joint life term plans available which they can look into as per need and budget.
If one or the both doesn’t have a provision of employer provided pension then they must opt for pension plans and retirement products which will help them to secure a happy retirement life with a stable and definite stream of income. Other life insurance products like savings products and endowment policies can also be purchased as they are equally good compared to other investment and saving options.
There must be separate third-party motor insurance for all the vehicles the family owns as it is a mandatory requirement by law. Instead of the standalone third-party cover, the comprehensive motor insurance policy with own damage section should be purchased as it saves a lot of out of pocket expenses in case of any damage to the vehicles.
Householder’s package policy:
Householder’s package policy is an insurance product which is most underrated and neglected one. It saves the dream home which the family lives in and protects the most important asset the family has. The product is important with increased frequency and severity of natural and man-made perils which we are seeing almost every year striking once or twice major cities of India unleashing devastation on its way.
The product is designed so well with all the relevant coverages and sections under one single protect umbrella that it serves a modern family very well with a variety of coverage mentioned below
- Damage to building of our home or flat/apartment and its contents from Fire and natural perils like flood, earthquake, cyclone etc, man-made perils like riot, strike and malicious damage.
- Burglary or house breaking including larceny or theft coverage the contents of our home from the named perils.
- All risk cover for jewellery and valuables is provided for anywhere in India. This is very useful cover as these are high risk prized possessions that can be robbed or stolen when taken out of the bank locker for wearing in a marriage ceremony or party.
- Electrical and mechanical breakdown of home appliances like Refrigerator, washing machine, invertor etc will be covered.
- Electronic equipment coverage covers our laptops, electronic gadgets, DVD Payers and alike present at our home from breakdown and other risks.
- Fixed plate glass
- Pedal cycle
- Baggage insurance
- Personal accident
- Legal liability towards domestic employees and third parties for bodily injury and property damage.