Wedding in relatives? Present an SIP or Insurance

Wedding in relatives? Present an SIP or Insurance
Your much loved niece is getting married and you wish for to gift her incredible special. A place of gold watch is too weary an ideal. The furniture seems first-class, but what if they don't like the design? A fridge or a TV? They may by now have one. Why not occupy yourself it safe and give jewellery? Or cash? Will you fit in the option, here's our proposal. If you in fact want to provide the new couple a little that will be cherished, create a mutual fund SIP for them or purchase them a life or health cover.
Insurance policies may not come into view suitable because they relate to unlikable situation. Mutual funds don't call to mind the same feeling as cash. But these gifts can change the monetary future of the couple. If the groom is 30 years old, a term insurance cover of Rs 1 crore for 30 years will cost around Rs 10,000-11,000 per year (see table). Tell them you are paying the first premium and they will have to renew the plan in subsequent years.
Many people believe term plans a waste of capital because they don't have a maturity value. If you believe the couple may not carry on the policy, go for a single premium plan. The entire premium is salaried at one go, and there is no possibility of the policy lapsing. But such plans are costly. If your financial plan is small, go for a lower cover and shorter tenure of 20 years. Keep in mind, even as that an insurance cover up should not end when one is his 40s or 50s because that is the time when he requirements it most.
Alike, a health policy for the couple is an ideal gift. If the coal policy to create a family in 2-3 years, you can even provide them a policy that covers maternity expenses. Such policies have a for the future period of 18-24 months before maternity expenses get enclosed. A health cover of Rs 5 lakh, which also includes maternity expenses, will come for approximately Rs 8,000 a year.
Initial a mutual fund SIP might not be on the to-do list of the duo. But if you establish one for them, their bank will make sure they carry on investing in the fund. It will save their future; inculcate the saving custom and investing regulation in them. Decide a good diversify equity fund and recite certain they will obtain good returns. There is regulatory obstacle. Insurance companies don't believe application forms from people who don't have an "insurable interest" in the person and mutual funds don't agree to cheques from a third party. This means the couple will have to apply for the insurance cover or mutual fund.
Admittedly, this robs the gift of the surprise element. You will have to speak to the couple well in advance and convince them to be in agreement to your proposal.
After you have influenced them, the couple will have to entire the official process and official procedure. Forms will require to be filled and KYC documents submitted.
In you are gifting a high-value cover; the insured person may also have to experience a medical test.
Regulations prevent mutual funds and insurance companies from accepting third-party cheques. So you will have to provide the couple the money for the original payment. Under standard conditions, if one gets gifts worth more than Rs 50,000 in a year from anyone other than particular relatives, one is taxed for that amount. Though, this clause does not apply in the case of gifts received at the time of marriage.