Surprise Your Sibling with a Unique Gift This Bhai Dooj
Bhai Dooj is the second day after Diwali. This year it is falling on 26th October 2022. Bhai Dooj is a day that celebrates the bond between siblings. Sisters pamper their brothers and brothers show their gratitude. In both cases, gifts are exchanged besides unconditional love and respect.
The tradition of giving gifts during Bhai Dooj
When it comes to giving gifts, finding the suitable gift is a challenging affair. You would want what’s suitable for your sibling and not everything appeals to your tastes. While chocolates, apparels, accessories, flowers, and gadgets may be the common picks, how about gifting something unique and unconventional?
A Bhai Dooj gift could be thoughtful relevant and according to the requirement of your sibling. A life insurance policy may fit these requirements and can thus be considered. It may be a unique gift for your sibling, one that would provide him/her financial freedom and security.
How life insurance fits into the suitable gift mould?
A life insurance policy has multifaceted benefits that makes it a suitable gifting choice. Here’s how –
- There are different types of life insurance plans that you can choose based on your sibling's needs
- Life insurance plans are tax-saving in nature, subject to the provisions stated under Income Tax Act, 1961.
- They help provide financial security in the case of premature deaths during the policy term
A term plan and a ULIP are two different types of life insurance policies. While the former helps provide financial security in the event of premature death during policy term, the latter provides financial security as well as helps in market-linked wealth creation.
Let’s look at some of the benefits of these plans.
Benefits a term insurance may provide to your sibling
A term plan covers the risk of premature death during the policy term. It gives your sibling and their family financial security in the absence of the breadwinner. If your sibling is the breadwinner, he/she can invest in the term plan for their family’s financial future. On the other hand, if your sibling is financially dependent on you, you can financially secure your life under a term plan and give them the financial security that might help them fulfil their financial needs in your absence.
Term plans are beneficial because –
- They provide financial protection during the policy term
- They have affordable premiums
- They allow riders that help in enhancing the scope of the policy, on payment of extra nominal premium
- If an optimal sum assured is chosen, term plans have the potential to give your siblings financial freedom even in the face of emergencies.
Benefits a ULIPs may provide to your sibling
ULIPs are suitable for generating market-linked investment returns along with life cover. These plans invest in the capital market and may give your siblings the benefit of market-linked returns associated with risk. If your sibling buys a ULIP, they can enjoy life insurance protection as well as market-linked investment returns.
Some of the other benefits of a ULIP include the following –
- Flexibility in the form of switching, partial withdrawals, top-ups, etc., subject to policy terms & conditions
- Choice of different types of market-linked funds to match the investment need of investor
- Professionally managed and diversified portfolios
- Tax benefits on premiums and death/maturity benefits, in accordance with the provisions of the Income Tax act, 1961.
- Financial security in the case of premature deaths during policy term
- ULIPs with varied features to cater to different financial needs like child plans, retirement plans, etc
One can make use of ULIP calculators to assess the estimated returns. They can, then, consider investing in ULIPs to help create a suitable corpus for their financial goals so that when they need funds, the ULIP comes to their aid and helps them fulfil their financial obligations.
The bottom line
Bhai Dooj is around the corner. While you celebrate your bond and pamper your sibling, make this day special with a unique gift idea. Gift your sibling the financial security that life insurance plans give and help them invest in a suitable policy. Help them identify their financial needs and then invest in suitable life insurance plans to cover such needs. As you help in fulfilment of your siblings’ financial goals, you would give your siblings the appropriate gift – the gift of thoughtfulness and love.
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