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6 Ways to Plan Your Finances when Living Alone

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Wake up when you want, step out when you want, cook when you want, clean when you want– these are some of the perks of living on your own. You have tons of freedom, flexibility and space. However, it brings with it a few concerns too. One of them is financial planning. When you are living alone and spend your earnings only on yourself, you must plan your finances well to avoid unnecessary setbacks later.One of the best ways in which you can tackle financial planning is by taking the right medical insurance plan. There are some other products available too, which can protect your future against uncertainty and come in handy during emergencies.

So, if you are living alone and looking to secure your future and finances, consider taking the following insurance plans at the earliest.

1. Life Insurance:

Even if you are living alone and do not have any dependents, a life insurance policy can help cover your final expenses. And in case you have dependents to whom you offer financial assistance from time to time, a life insurance policy will keep them financially secure in the event of your demise. If you support a charity, the amount will go to them after you are no more. So, it is always wise to take a good life insurance policy for the sake of your dependents.

2. Disability Coverage:

This is yet another important insurance product for everyone, especially for those living alone. In case you are unable to work and earn a living due to temporary or permanent disability, the insurance company will take care of your treatment expenses as well as the loss of income. Hence, this insurance product can meet your financial obligations and help you maintain a decent lifestyle. Most insurance companies cover short-term disability, long-term disability and paid sick leave of the insured.

3. Medical Insurance:

Even if you are fit and healthy now, you never know when an illness or accident may occur. This is when having a good and adequate health insurance policy can help. There are many reputed health insurance companies in India offering a range of medical insurance policies for individuals, families and senior citizens. Hence, you can compare some health plans online and choose the one that best matches your requirements.

A health insurance policy not only takes care of your hospitalisation bills, but also covers pre and post-hospitalisation expenses, home healthcare costs, organ donor expenses, and more. In case of a medical emergency, you can opt for the finest treatment without fretting about the bills.

4. Long-term Care:

If you are living alone, you are probably worried about your future. Thanks to better healthcare services, healthy lifestyle habits and hygiene, life expectancy has been increasing at a rapid pace. However, the higher the life expectancy, the higher will be the need for long-term care services, such as home healthcare or assisted living facilities. All this can be an expensive affair, especially when you havelimited or no income after retirement.

Hence, it is always wise to take a long-term care insurance policy at a young age itself or at least in your 50s. Trying to take one when you are sick and require long-term care services can lead to the rejection of your application.

5. Homeowner’s and Renter’s Insurance:

Whether you own a house or live in a rented one, you must take a suitable insurance policy and stay covered. If you own a house, a homeowner’s insurance policy is what you need. This policy will cover the structure and contents of your property against a range of natural and manmade events, such as floods, earthquakes, riots, fire, theft and accidental damages. If you are living in a rented apartment, you must take a renter’s insurance policy to cover your belongings and save yourself from major financial setbacks.

6. Retirement Income:

When you are living alone and don’t expect anyone to support you financially post-retirement, you must take a retirement savings plan without further delay. Although you may get retirement income from your company’s pension plan, it may not be adequate. Hence, it is best that you start saving early in life to live a comfortable and respectful life post-retirement.

Some Important Things to Keep in Mind

• Take the Right Insurance Plans:

Instead of taking insurance randomly, take the help of an experienced insurance professional to choose the right insurance policies for maximum benefits. Or do your own research and compare multiple providers.

• Maintain a Good Credit Score:

This is important to get loans easily. A good credit score implies that you handle credits wisely and repay debts on time.

• Pay Premiums on Time:

Pay insurance premiums on time to keep the policies active. A lapsed policy can expose you to huge financial risks.

Conclusion

To sum up, whether you are living alone or with family, taking the right insurance policies and planning your retirement well in advance are some important things to consider. A medical insurance policy is one of the most important financial products that you must keep handy. As you grow older, the chances of medical emergencies increase, and these can lead to huge financial setbacks. Hence, start saving early and plan your retirement wisely with the right insurance plans for a comfortable life pre and post-retirement.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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