FINANCIAL WELLNESS

Retirement has a special place in every Indian’s financial planning. The main idea of a good retired life is to continue to live the same life of comfort minus your work commitments.

However, this aspirational life needs you to take some well-calculated financial decisions vital to help you achieve your goal.

Technical experts at SOA work closely with you to design a customized plan that ensures you maintain your current standard of living even after your retirement.

To plan well, you first need to know your current financial position.

Let us first understand where you are standing in your – Saving for Retirement.

Firstly, determine your current financial coordinates/position by answering the following three aspects:

• My total savings up till now
• Number of years left for retirement
• My annual income and what percentage of it can be replaced

Allocation of your retirement funds should not depend on your current income alone. It is equally important to have a futuristic approach and prioritize utilization of your funds in your yester years. Here are some questions which on answering will help you prioritize fund allocation more systematically.

• Do I have any health issues which may impact‌ ‌my‌ lifestyle post-retirement‌?
• Where do I plan to stay after retirement?
• Whether you would prefer to stay near your family and friends?
• What is the status of the health care facilities available in the area I wish to spend my retired life in?
• What is the tax implication in the city/country that you wish to live in?
• What type of retired life would you enjoy? Adventurous, leisurely, or a mix of both?
• What are your areas of interest you would like to indulge in? Traveling? Social outings? Charitable activities?
• Do you intend to continue any of your side incomes even after retirement?

Answering the above questions will help you determine the income level you will need post-retirement and choose the means to achieve it.

Life insurance is the cornerstone of any good financial planning. You would be amazed to know that Life insurance provides you with financial protection up to the age of 100. During redemption, a beneficiary gains comprehensive benefit protection as promised.

Legacy Planning is an indelible part of our Indian financial planning system. Done primarily by a financial advisor, legacy planning is mainly done to distribute the policyholder’s estate to the next of kin.

Life insurance has several benefits attached to it. One such benefit that its legacy planning brings to the table is the tax efficiency with which funds are transferred to the beneficiaries. This income tax-free amount comes in very handy to the beneficiaries to meet any sudden monetary demand as well as fulfill their daily fund requirements and live a life of dignity.

Placing assets that build a legacy into the hands of the next generation not only reduces tax liability in the short term but also helps the beneficiaries during contingencies.

KEY BENEFITS OF LIFE INSURANCE FOR LEGACY BUILDING?

• Immediate disbursal of death benefits helps the beneficiaries during these difficult times. Since all monetary aspects are already taken care of, the beneficiary can lead a life of financial security.
• The policyholder leads a life of confidence that his loved ones will be financially sound even after he is gone.
• Policy amount transferred to the heir is tax-free.
• The policyholder has an ultimate right over the insurance policy. He or she can make any amendments to the policy as and when they feel appropriate.
• With life insurance, the premium paid can act as a larger death benefit immediately after it is issued.
• Life insurance policy can also be treated as an asset as it helps in generating liquidity against the policy. Should the need be, you as a policyholder can withdraw funds in the form of loans against your life insurance policy in case of emergency.

Category of High Net-Worth Clients:

In the life insurance industry, we usually see 2 basic categories of high-net-worth individuals. First, those clients who are fully committed to a particular strategy and second those who may be prone to changing their strategies down the line.

• Committed Clients: Such clients choose a life insurance product based on the maximum death benefit provided to match their needs. Example: A guaranteed death benefit product.
• Clients whose commitment may vary: Such clients are constantly on the lookout for a life insurance product that offers all-round benefits to the policyholder along with a good death benefit. They usually choose a policy with more opportunities to build high cash value that may be helpful to supplement their retirement income.

For Legacy Building, it is advisable to consider robust guaranteed death benefit products or a high cash value-generating product.

Some benefits of Legacy Building for you:

*Our guaranteed death benefit products offer our clients both value and potential peace of mind.

* Our clients gain access to several riders, exceptional endorsements, and other competitive features that help them avail a customized policy to comfortably fit their requirements.

An employee is the backbone of every company. Recognizing the importance of an employee, many companies take a step forward towards ensuring the well-being of their employee. One such step towards this engagement is the employer-employee insurance scheme.

The Employer-Employee Insurance scheme is a policy in which an employer or his company opts for a Life Insurance Scheme for its employees. This means that the premium of the policy is paid by the employee’s company while the employee’s family members are the beneficiaries.

This additional benefit provided by an employer is a win-win situation beneficial to both parties.

The employer-employee insurance scheme acts as a major tool for retention. The employees develop a sense of belonging to the organization that keeps them motivated to continue in the same company for years.

Apart from retention, an organization also saves majorly on taxes on the premium it pays for its employees. On the other hand, employees who would not take life insurance coverage otherwise are covered under the scheme and feel one with the organization.