Goal Planning

Goal Planning

Goal-setting starts with identifying various short to long-term goals. While saving for an expense such as annual vacation or buying furniture in the next 12 months may be a short-term goal, saving for home loan down payment over the next 3-5 years may be one’s medium-term goal. Long-term goals may include child education, marriage needs or funding one’s own retirement.

The identified goals need to be well-defined by assigning them some value as well as setting a time horizon to achie ..When it comes to choosing the most suitable life insurance plan, there is an array of options to choose from. Some people focus on wealth creation aspect, some look for lower premiums, some compromise with protection element while some get bewildered and choose the wrong plan. It may be hard to know exactly where to start unless you select a plan based on your financial goals.


If one plans and sets the goals in advance, managing and controlling one’s finance is easier. Any short-term temptation to divert funds towards immediate and discretionary needs gets curbed. Impulsive buying may also take a back seat. Setting goals in advance helps in proper utilization of available resources, i.e. investable surplus. It gives you the reason to follow the approach of ‘Income minus saving equals to expenses’ rather than ‘Income minus expenses equal to saving.’

Lower premium + higher coverage

If you are looking for a plan that is easy to understand and affordable to buy, it is advisable to go for term insurance. Dubbed as the ‘purest life insurance plan,’ a term plan gives you the widest possible coverage. For example, with you can secure your family for the price of an apple, i.e. 1 Cr. life-cover at just Rs. 17 per day!* A term plan provides death risk cover for a specific period. You can boost your existing plan and widen the coverage with critical illness and disability rider. The best of both the worlds! 

Insurance + Investment

If you want to have your cake and eat it too, a combo product of  insurance and investment will be the best fit. ULIPs are still one of the most trustworthy financial tools among a large number of families. A saving cum protection oriented traditional life insurance plan, assists you financially by guaranteed returns in the form of regular payouts. You can invest in different funds, including equity, debt or hybrid, depending on your risk appetite.

To save your money

Some of you may not be aware, but some Life Insurance Policies come with saving oriented plan that assists you financially by guaranteeing returns in the form of regular payouts. With such a plan, you can save your hard earned money for a limited period and get guaranteed cash back. If you want to provide your loved ones a comfortable life today and tomorrow, a life insurance com saving oriented plan is ideal. In case of loss of life, your family is provided the regular payouts. It gives you peace of mind that someone is present to take care of your family even in your absence.

Amidst the plethora of  life insurance plan available, selecting an appropriate plan may be a herculean task. There is no one-size-fits-all solution because every family is unique and their financial goals vary. Ensuring your financial goals is a smart way to choose the right plan.

Secure your child’s future growth

Are you serious about Securing your childs future? If yes, a child plan will serve your purpose. It is a traditional life insurance plan that secures important milestones of your child’s life, like higher education, wedding, etc. A child plan enables you to systematically build funds for your child and comes with many additional perks, like guaranteed money back, tax benefits and waiver of future premiums. Raising a child is definitely not a piece of cake as it entails a great sense of responsibility. A child plan takes care of your child needs even when you are not around.

Life insurance goals

Once the goals are identified, the role of risk management tools such as life insurance gains importance. The goals that you wish to achieve through life insurance by linking them to it is an important financial decision. Life insurance (savings-oriented), for example, is a long-term savings product. Hence, the goal one wants to achieve through it also needs to be long term. The importance of goal-setting, therefore, is an important step before one starts to save through life insurance.

Life insurance helps in mitigating the risk of not meeting long-term goals such as children needs. If, for example, one starts to save for children needs through life insurance, the commitment to divert savings towards the goal continues till it is achieved. In case of an untimely death of the parent, life insurance plays its part and secures financial requirement of the child. So, if your goal is to save a specific amount to be used by your child when he/she attains a certain age, a child-oriented life insurance plan may be a better alternative to achieve it even in the absence of the parent. Goal-setting thereby helps in safeguarding you and your family against any financial crisis in the event of death or disability when your financial dependants need your financial support the most.


The process of goal-setting may have its own share of challenges with procrastination being one of the biggest challenges. For instance, there could be a change in the financial position or life situations may also change. Delay in the goal-setting process could cost you heavily as you would lose on the benefit from the power of compounding. There is a possibility of over or under-saving as well with resources not being utilized optimally. It is therefore better to be prepared to face the uncertain future well in advance.


A comprehensive goal-setting process would start by establishing the current financial state of the individual by gathering relevant financial information. This helps in putting realistic goals and values in place. Thereafter, identifying and estimating the requirement after adjusting for inflation takes place. A post-graduate course costing Rs 9 lakh today may cost more than double in 15 years! Lastly, one has to come up with a strategy or plan for meeting the goals under the current situation 


Setting of goals marks the beginning of financial planning to help you achieve the objectives at various life stages. Goal-setting gives meaning and direction to the various financial decisions you will take during your lifetime. A common misconception among most investors is to consider financial planning similar to investment planning, which in reality is only a part of the former. Keeping all these factors into consideration, one needs to start the process of goal-setting without any delay.