In March, retail inflation – as measured by the Consumer Price Index (CPI) – surged to a 17-month high of 6.95%, up from 6.07% in February, according to the National Statistical Office (NSO) data.
“The price burden is on the common man and we are trying to relieve that stress,” Finance Minister Nirmala Sitharaman said recently. Indeed, commodity prices are at multi-year highs owing to supply chain disruptions and ongoing geopolitical conflict between Ukraine and Russia, with food price inflation in rural areas more than doubling to 8.04% in March 2022 from 3.94% in March 2021.
Financial planning to fight inflation
In the wake of these developments, how can one ensure their lifestyle is not impacted as a result of rising inflation, not just in the short term but also in the long term? What steps should one take to combat the increase in cost of things across the board, from food to fuel and travel to tuition?
Admittedly, a necessary counter to this is adopting sound financial planning and building new financial habits that will help you tide over economic uncertainties and combat the impact of inflation.
Experts recommend adopting a range of strategies to hedge one’s finances against inflation, including investing in real estate and commodities that are resilient to the effects of inflation, as well as long-term investments that have the potential to deliver inflation-beating returns.
In prevailing economic conditions, it is also wise to invest in an insurance plan that’s designed to take care of your short-term financial needs while also securing your future in the long term. One such life insurance plan is HDFC Life Sanchay Par Advantage Plan, which provides coverage for your entire life by offering a comprehensive solution that enables you to generate a regular and consistent flow of income as well as build a corpus.
Offered by HDFC Life, the HDFC Life Sanchay Par Advantage is a non-linked, participating, life insurance plan that helps policyholders achieve their life goals and secure their future without making any compromises. In many respects, it is an unconventional combination of life insurance with immediate income options for your various needs and customizes your savings plan to match your expenses and financial needs.
What makes HDFC Life Sanchay By Advantage stand out
- Immediate or deferred income options: There are two plan options available that offer lifelong benefits with flexibility of payouts and whole life cover.
- Immediate income option: The option provides regular income by way of cash bonuses (if declared) at the end of each policy year, payable from the first policy year, and also provides a lump sum at maturity
- Deferred income option: This option provides guaranteed income for a guarantee period, and also provides regular income by way of cash bonuses (if declared) throughout the policy term.
- Low premiums and multiple frequencies: The premiums can be paid monthly, quarterly, half-yearly or annually. The policy can be availed with a monthly premium of as low as Rs 2,188.
- Flexibility: The plan is for everyone who seeks flexibility in an insurance plan. It provides for deferral of survival benefits at any point during the policy term. The policyholder can defer the survival benefit arising out of declared cash bonuses or guaranteed income and increased them instead. The survival benefits are paid on policy anniversaries but the policyholder can choose to receive the survival benefits on any one date as per their choice.
Other key features:
- Life cover with protection upto 100 years of age
- Additional income is offered for policies with annualized premium of more than or equal to Rs 1 lakh
- Tax benefits: You will be eligible for tax benefits as per prevailing tax laws under Income Tax Act, 1961.
- Contingency planning: You can boost your contingency planning and top up your savings plan with these three additional riders: HDFC Life Income Benefit on Accidental Disability Rider, HDFC Life Critical Illness Plus Rider, and HDFC Life Protect Plus Rider.
In a macroeconomic environment where inflation is expected to persist longer than expected, it’s only natural to expect people to prioritize their spending and cut down on travel and vacation expenses. But by investing in various plans such as HDFC Life Sanchay Par Advantage and adopting other measures to curb the effects of inflation, you can ensure your purchasing power does not erode in the wake of rising prices.