While your father must be bestowed with many gifts, it’s time for you to return the favour, and Father’s Day presents the perfect opportunity to do so. However, why not be a little different and present financial gifts instead of regular ones that will make a long-term monetary impact.
There are multiple presents that you can give your dad on this special day that will make him proud of your choice. What are they? Let’s find out.
Health Insurance
Given the spike in medical costs, health insurance is a modern-day need. The body becomes susceptible to various ailments with age, and a medical contingency can strike anytime. If your father doesn’t have a health insurance plan, the same can take a toll on his finances and even deplete the retirement corpus in no time.
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Gift your father a health insurance plan that will prevent out-of-pocket expenses and ensure funds are not a paucity in receiving the best possible treatment.
Today, health insurers offer many dedicated plans for senior citizens. Tailored specifically for their needs, these plans, though come with restrictions, are quite handy in case of hospitalisation. Compare different plans and choose the one that best fits your father’s needs.
Mutual Funds
If your father is yet to retire and hasn’t invested in mutual funds, you can ask him to start a systematic investment plan (SIP) in a fund and contribute the monthly amount for the same. Investing through SIPs will help your father beef up his retirement corpus.
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An aggressive hybrid fund can be a prudent bet as it has a mix of equities and debt. While the equity component will help in wealth creation, the debt part will prevent the gains from eroding due to market fluctuations.
You can help your father do all the necessary paperwork, including KYC compliance, for getting started with mutual fund investments.
Annuity Plans
Annuity plans are pension products. Gifting them ensures that your father can take care of his post-retirement needs hassle-free. You can choose the annuity plan depending on which stage of the job your father is in.
For instance, if your father has a few years left for retirement, you can gift him a deferred annuity plan. In this, pension starts after a few years. On the other hand, if he has retired, you can buy him an immediate annuity plan. In this plan, the pension starts immediately.
Annuity plans are a great way to secure your father’s retirement and ensure that he spends the golden years of his life stress-free.
Gift Him an Add-on Credit Card
Credit cards have become the way of life. If you are using a credit card, then you can opt for an add-on credit card for your father.
Note that the transaction limit for this card will be within your overall limit. The features of the add-on card will be similar to that of the primary card. An add-on card will give your father greater financial freedom and unburden him from carrying cash.
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Other Kinds of Service
While it’s next to impossible to quantify the sacrifice your father would have made for you, you can express your gratitude by making his old age financially stable with the aforementioned gifts. Along with these, you can also help him pay off some debts that he might be incurring in any form. Having a debt-free life would give him much-needed peace of mind.
The author is Head, Edelweiss Personal Wealth
DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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