By Ajay Sharma, Director & Designated Partner, Investment Mitra Advisors LLP
India is a land of Festivals. Traditionally India had been an agrarian society and had prospered immensely on agriculture. Prosperity brought celebration in our lives along with responsibility. Sense of responsibility towards our fellow beings in the society including non-humans reflects in our festivals and in our rituals.
One such festival that evokes responsibility among Indians is “Raksha Bandhan”. In its most popular interpretation – on this day brothers reassure and promise to protect all interests of their sisters and against all evils in their sister’s lives.
On this Raksha Bandhan, let this promise be not restricted to some gifts and a promise to protect them physically, but expand its scope, both in terms of relation and scope of protection. This year, while expanding the scope, include all those people who are dependent on you and provide them your umbrella of financial protection. They could be your parents, your siblings, children, life partner, employees and any other.
Scope of protection
- First and foremost is ensuring that money should keep flowing to all those who are dependent on your income even in your absence. So calculate your Human Life Value and buy a Term Insurance Plan If your wealth is short on your human life value.
- Second buy health insurance for all the dependents including you to meet exorbitant expenses that one has to incur in case of any unfortunate incidence of sickness.
- Third, evaluate your investments and cross check that you are saving enough to meet financial objectives of each dependent till the time they become independent.
- Fourth ensure that you have sufficient corpus in your contingency fund to meet expenses of any unforeseen situation.
- The fifth and equally important is that ensure you save enough for meeting expenses post your retirement.
Protect Your Employees
Ancient texts are full of stories that tell this festival was not celebrated just between brothers and sisters. On this day people use to tie the sacred thread around the wrist of their Master and seek their protection. As a master you can protect your maid, gardener, driver and any other employee at home or at the workplace.
Buy them prime minister’s Jeevan Jyoti Bima Yojana and Suraksha Bima Yojana. They hardly cost anything. Ensure that all your servants have got Ayushman Cards to enjoy benefits of PM’s Jan Arogya Yojana. You can also explore group mediclaim, group accident and group term plan for them. Motivate them to start a recurring deposit with a bank or an SIP into a liquid fund to create their contingency funds and an SIP into an equity fund to create long term corpus for themselves.
You may take help of a Certified Financial Planner in case you are finding it difficult on how to go about it. So this Raksha Bandhan promise to protect the financial interests of your loved ones and also ensure protection for those who serve your interests.