Mid-life financial crisis and how to avert it
We all remember how Indian won the World Cup in 2011. Everybody took care of their roles in the matches and finally, India lifted the cup after 28 years. But we hated it when legends like Tendulkar and Sehwag got out early. It seemed India would lose the match if the middle order did not perform and than came Dhoni and he finished it off in style however if Dhoni didn’t perform then the result could have been different.
Just like the failure of middle-order can change the result of the match, a financial crunch in your 40s, i,e. your mid-life, can ruin a lot of things. Despite having a great run your early career, in your 40s, that decide how you will spend the most of your life ahead. Just like the collapse of middle-order exposes the tail-ender to the merciless bowling of the opposition, a wrong financial move can put your entire life in a precarious situation.
To deal with all this, there is something you can do. Long-term income plan from insurers is a product that can help you secure your mid-life and plan for the future.
In a nutshell, this is what it is: You pay a certain amount per annum for 12 years. In the thirteenth year, there is no payment and no payout. From the fourteenth year, you get a certain amount every year for the next 25 years. Setting it straighter, if you pay Rs 2 lakh as a premium per annum for 12 years, then from the 14th year you will get Rs 2.53 lakh as a payout for the next 25 years. Check out the graphic below:
Now, let’s answer all the whats and the whys in your mind.
Guarantee: A guaranteed, fixed payout for 25 years is not something you want to ditch. 25 years is a quarter of a century and a very big span of your life. Rs 2.53 lakh per annum will be a good sum of money to have regardless of the inflation. A guarantee is something we all crave for. No offence intended, but even great cricketers could not provide the guarantee of performance in each match. This plan does that for you.
Lock interest rate: Many of you may have invested in mutual funds. Let’s compare it with mutual funds. Since markets are volatile, you cannot predict your income out of it. What if the stock market is in a bear phase or faces a sudden crash just when you need money? A guaranteed income plan irrespective of how the economy and the stock market behave keeps you stress free.
Leisure: When you already have your 40-50s financially secured, you will have more time with the family. You will not have to bother about retirement, your children’s higher education or marriages all at once. This plan gives you an income that will keep things running and more importantly give you the freedom of really being there for your loved ones.
Taking a risk: There comes a time when people get bored of their work and wish to venture into something else. If you too feel the same at some point in your life, this plan will come to your aid in two ways. You can either infuse the payout amount into your new venture and give it a boost or you can simply use it as guaranteed money to run things the way they were. The money will help you do what you want without losing your night’s sleep over some financial crunch.
Unprecedented times: Life throws up challenges you never see coming. Someone can fall severely ill, your house may need immediate repairing, your kids’ education may require a huge amount of money, a wedding can end up costing way more than what you expect, and so on. This payout will give you the financial cushion to rest on. No matter what life hits you with, this money will absorb the blow.
Retirement: You may have your investments running for your retirement goal. This guaranteed plan will give it a boost. By the time you are done and dusted with your professional life, you will have this payout ready to pay its dividends. When you hit the age when you would want to relax, you will have enough money each year to really feel relaxed.
Vacation: Well, who doesn’t like an exotic vacation? If your key financial goals are already secured, you may want to use this guaranteed income to travel the world and explore different cultures.
Again, in a nutshell, be it education, a risk in career, setback, or retirement, this plan will not fail you, if you don’t fail to take it. We at Caterpillar want you to have a stress-free mid-life and retirement if your plans are that. Financial doubts and hiccups can take down the strongest of us. This plan and our service to you will not let that happen. All you need to do is come to us with an idea of your future.