Rethinking your Chanukah gift
By Ronen Goldman, Director of Marketing & Customer Relations, Goldfus Insurance
We all have fond memories of Chanukah. A time when family gets together to light the candles, spin the dreidel, bite into a soft doughnut and continue long-standing family traditions.
At some point between all the singing and eating, the Chanukah gelt and presents are handed out to the children and grandchildren causing much excitement, even though we all know that within a few short months they are put aside and become a happy memory.
This year, instead of heading straight to Toys R Us, take the time to consider a more meaningful gift with a much higher value to your loved ones – providing both financial security and protection for their future.
What could be a suitable alternative?
Investing for the future
Many insurance companies and investment houses offer alternative and competitive savings and investment solutions in addition to the basic options that banks may offer. In doing so, they have opened up the savings and investment market making it a viable option to both the major investor and the “everyday saver”.
This Chanukah, instead of putting the money towards a toy, put it towards a monthly deposit in an investments policy which will result in a gift that will be more appreciated in the long term.
By depositing as little as 100 NIS per month into a savings account for your child or grandchild (for a period of 20 years at an interest rate of 4%), they will accrue just under 37,000 NIS during this period, 13,000 NIS higher than a savings plan with no investment tool.
Whilst the child may not understand the nature of the gift, it will be one that they will surely be grateful for later on in life.
Continue to protect your children into old age
Medical advancements and greater longevity have increased the number of long term nursing care recipients in Israel. The expenses related to such an unexpected change in lifestyle are particularly high. Long term care insurance (Bituach Siudi), gives you the peace of mind that your children will be receiving the best care possible, if and when they need it, without becoming a “financial burden” on their family.
Selecting the best coverage for your children will provide some protection from the unexpected, since long term care policies offer fixed premiums and have a paid up value built into the policy. This means that the younger one enters the policy, the cheaper the premium (which does not increase with age), as well as the added benefit of a certain percentage of guaranteed coverage (via the paid up value) even if your child decides to stop paying the premiums in the future.
Making the most of both options
For the ultimate gift, you can combine the two options and provide your child with an investment for the future, and also a policy that will protect them should their circumstances change.
It is essential to speak to an insurance professional to build the policies appropriately. Whatever the case, providing your child or grandchild with financial security for the future is the best alternative Chanukah gift they could receive this year.
For more information about Long Term Care Insurance and Investments in Israel, contact us today!