5 Steps for Young Couples to be Financially Stable

You can hate it, you can love it but you cannot live without it. Yes, money is arguably one of the top requirements to survive in today’s world. However, everyone seems to make money but only few of them seem to be happy with the money they make. On deeper introspection you will find that the equation is not in making money but in managing money. As the saying goes, early bird catches the worm, similarly starting early is always a good way to manage money, not only do you have more time but also you can recover in case you make any wrong decisions as well.

Keeping this in mind, I have listed out five important steps which can be taken by young couples to be financially stable & be happy.

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Avoid Splurging

Everyone likes to spend money if they had enough money. Surely, money is not everything but it is definitely not wise to spend the money if you have an important bill to pay, or an EMI or a debt. Always before you spend the money do not assume that you will get that bonus or that profit you were expecting. Good days are not always here to stay and you could be in the doldrums anytime. So be 100% sure that the money you are spending is only for spending and it was not useful elsewhere. Take stock of your finances and if possible keep a separate amount for fun expenses.

Start Saving for Child

With today’s ever increasing costs raising kids no kid’s game and you got to clearly plan the expenses with respect to the future of your kids. Make sure you have saved enough money right from the medical expenses for the new born baby to the vaccinations and any other mandatory requirements for the baby like baby food, clothes, day care etc. This is not to make you feel like a miser but just to be wiser so that you don’t get off guard the next time you buy a baby powder and shocked that it costs more than your talcum powder. It always helps to be prepared and when you are prepared you always give a better performance. It only make sense as you do not want to give a stressed environment to the new born baby as well.

Go for Sufficient Life Cover

You always have to a plan B. Yes, in short who will take care of your family if something untoward happens to you? This is where you need to buy a life cover. Ideally life cover should be at least 20 times your annual income. You have to options you can go for term plans which are cheaper but give you higher coverage but do not return any profit or the premium paid as well. Make sure you know the maximum age till which your term plans cover. Term plans do not cover till the person dies after old age. All of them have age limit, mostly up to 75 years of age. On the other hand you have endowment life insurance plans which cost much higher but give you coverage till the participant is deceased or even at the maturity of the plan. So see which plan is better to you and choose accordingly.

Purchase a House if EMI below 40% of Income


Most probably sooner or later everyone likes to own a house for two reasons. One is stop paying rent etc. for the accommodation and the other is to have a stability in life in case you are going to stay, work and live in the same place. Going for home loans is a good option because you need to invest all the savings for your new home, you also get tax rebates, you only pay small EMIs and sooner or later the property you purchased is an asset. Ideally banks too would issue home loans based on 40% of your income. This ensures you have enough money for other expenses.

Get the Right Health Plan

Health is wealth. However, with today’s high cost medical facilities the saying only becomes stronger. Having a good health insurance saves you from sudden high expenses in case of a sudden health problem and also keeps you financially safe.

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7 Myths Uncovered About Health Insurance

Health insurance is highly recommended for our lives which are subjected to a number of lifestyle diseases. Expenses on health care can be immense and having an insurance policy eases some of the burden. However, there are many myths associated with a mediclaim policy which deters people from buying it.
Here are the top 7 myths that have been busted about health insurance policies in India.



Health Insurance Myths

Pre-existence of diseases

Most buyers worry about the pre-existence of diseases when buying a health insurance policy. All mediclaim policies come with a clause of exclusion of pre-existing diseases. But once a certain period is completed, it will cover the disease as mention in your health policy. Moreover, if you are completely fit at the time of purchasing the mediclaim policy, then this clause is non-applicable for you.

Cashless treatment for admittance

Cashless treatment seems to be the answer for all treatments under health policy in India. It is a common myth of health insurance which doesn’t work always. The hospital where you are being admitted has to be in the list of the health insurance provider to get cashless facility. Unless the hospital is in that list, you cannot be admitted cashless, but can claim reimbursement.

Moreover, not every hospital has an insurance desk which is functional at all hours of the day. If your time of admittance does not coincide with the working hours of the desk, then you may have to pay up for admission.

Exclusion of pregnancy

One of the largest myths of health insurance is that it doesn’t cover pregnancy. However, nowadays some insurers cover pregnancy. There may be a few additional clauses to this claim such as a waiting period of 3 years or cover for the first pregnancy. Nonetheless, pregnancies are now covered albeit conditionally.

Hospitalization for 24 hours

To claim health insurance, you need not be admitted to a hospital but not necessarily for 24 hours. A lot of advisors and buyers mistake this and insist upon staying in the hospital for a day. Unless mentioned in certain terms, this is a myth of health insurance that has risen because of cloudiness in understanding rules. Certain procedures such as cataract operations and day care processes (if included) often do not require 24 hours of hospitalization but they can be claimed if they are listed in your policy. Some dental treatments are also eligible for cover under a health insurance plan (if it is specifically listed).

Room rent is covered

It is a myth to consider that all health insurance policies cover room rent expenses. Only some policies cover room rent and you will have choose a plan that covers room rent. Capping on the rental rate of rooms is equivalent to the premium payable. Also for plans covering room rent, there are some limitations also.

Health insurance is just a tax saving instrument

Most healthcare expenses can cripple your financial planning for the year severely. You should buy health insurance solely for the purpose of securing your family financially against massive healthcare expenses. However, it is fallacious to buy the policy for tax benefits under section 80D. If you invest wisely, it can prove to be more than that. So make maximum use of it

No changes can be made into the policy I bought

The terms of your health insurance can be changed if there is a mind-set change. Add on covers, Extensions, adding members, etc can be in the middle of the policy tenure also.

There are several presumptions that people derive after seeing one or two policy documents, but in reality certain things actually exists, what we think as a myth. As discussed above, many health insurance companies actually delivers day care expenses cover, maternity benefits, pre-existing diseases and lots more, that we usually consider as a myth. Once we’ll not go through a policy document we cannot derive an actual sense of it.

"Think before you perceive things"- the real world is not always as we see it.
Go for a health insurance and secure your future from the financial crisis that may make a landfall on your savings account in terms of your growing health attention!

P.S : ‘Read the policy document carefully to clear off all your myths before actually signing your policy’.

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