Health Insurance
A contract with an insurer that covers medical expenses in return for regular premiums. It helps pay for hospital stays, surgeries, medicines, and more, reducing your financial burden during illness or injury. Plans can be individual, family, or group, and may cover pre/post-hospitalization, critical illness, and other benefits.
Tip: Buy early for lower premiums and wider coverage.
Education Loan
A loan taken to finance higher education expenses like tuition, books, and living costs. Repayment usually starts after course completion, often with a grace period. Loans can be from banks (public/private) or government schemes. Interest rates and terms vary; some offer tax benefits under Section 80E (India).
Tip: Start planning repayment early to reduce interest burden.
PPF (Public Provident Fund)
A government-backed, long-term savings scheme in India with a 15-year lock-in. Offers safe, tax-free returns and tax deduction benefits under Section 80C. Ideal for building a retirement corpus, with options for partial withdrawal and loan against balance after a few years.
Tip: Start early to maximize compounding benefits.
NPS (National Pension System)
A voluntary, long-term retirement savings scheme regulated by the Indian government. Contributions are invested in equity, government bonds, and other assets for market-linked returns. Offers tax benefits, flexibility, and a mix of lump sum and pension payout at retirement.
Tip: Useful for disciplined retirement planning with tax perks.
Life Insurance
A contract where an insurer pays a sum to your nominee in case of your death, in exchange for regular premiums. Protects your family’s financial future by covering loss of income, debts, or major expenses. Includes term insurance, endowment, and ULIPs.
Tip: Essential for anyone with dependents or loans.
FD (Fixed Deposit)
A safe investment where you deposit a lump sum in a bank for a fixed period at a guaranteed interest rate. At maturity, you receive the principal plus interest. FDs offer flexible tenures, loan facility against deposit, and are ideal for conservative savers.
Tip: Use for short- to medium-term goals and emergency funds.