You have a new role to perform in your life as a father. As children grow older and into adulthood, their duties shift. What remains a critical link throughout is financial security till the children are on their own and marry to embark on their life adventure.
In an exclusive interview with FE Online on Father’s Day, Manish Falor, Chief Financial Officer, Aegon Life Insurance, discuss what goals a father should set, how often they should be reviewed, and other financial and insurance suggestions.
What are the objectives that a father can attain by purchasing a life insurance policy?
All fathers want to provide a good education for their children, finance their goals, and even build a financial corpus that will serve as a safety net for them. All of these objectives can be met with the correct life insurance coverage.
How frequently should life insurance requirements be reviewed?
Any financial investment, including a life insurance policy, should be reviewed regularly or whenever circumstances change. In general, if your circumstances have not changed, it is prudent to examine the insurance every five years.
However, if your circumstances change, such as marriage, the birth of a child, or a big shift in income, it is a good opportunity to review your life insurance policy.
How vital is sufficient insurance coverage for fathers who are single parents caring for their children on their own?
There are two points to consider here. One, because you are alone responsible for your child’s care, your health and well-being become critical.
Second, a life insurance policy will ensure that your children are not financially stranded in the terrible case of your death.
What should be the approach for buyers who are not tech-savvy and find it tough to deal with insurance issues?
Innovative digital technologies are being introduced today to make the entire insurance purchasing process simple, transparent, and seamless. Perhaps the only technology you truly need to learn is how to use a cell phone. You can get insurance with only a few clicks, and you can do so from the safety and convenience of your own home.
What is the one piece of advice you would provide to all fathers this Father’s Day?
1. Regardless of how careful you are with your finances, failing to get proper insurance can jeopardize your financial future. It is critical to provide enough life and health insurance for your family.
2. In addition to insurance, an emergency fund and a retirement corpus should be established. Your emergency fund should have enough money to last at least six to twelve months. The retirement corpus should be adequate to cover your expenses and serve as a secondary source of income when you are no longer working.