Five gift ideas for a newly married couple
By starting a mutual fund investment or giving the newlyweds an insurance cover you will secure the financial future of the new couple.
If you really want to give the new couple something that will be cherished, start a mutual fund SIP for them or buy them a life or health cover. Insurance policies may not appear appropriate because they relate to unpleasant situations. Mutual funds don’t evoke the same feeling as cash.
But these gifts can transform the financial future of the couple. If the groom is 30 years old, a term insurance cover of Rs 1 crore for 30 years will cost around Rs 10,000-11,000 per year. Tell them you are paying the first premium and they will have to renew the plan in following years. Many people consider term plans a waste of money because they don’t have a maturity value. If you think the couple might not continue the policy, go for a single premium plan. The entire premium is paid at one go, and there is no chance of the policy lapsing.
But such plans are costly. If your budget is small, go for a lower cover and shorter tenure of 20 years. Keep in mind though that an insurance cover should not end when one is his 40s or 50s because that is the time when he needs it most. Similarly, a health policy for the couple is a perfect gift. If the couple plans to start a family in 2-3 years, you can even give them a policy that covers maternity expenses. Such policies have a waiting period of 18-24 months before maternity expenses get covered.
A health cover of Rs 5 lakh, which also includes maternity expenses, will come for around Rs 8,000 a year. Starting a mutual fund SIP may not be on the to-do list of the couple. But if you start one for them, their bank will ensure they continue investing in the fund. It will secure their future, inculcate the saving habit and investing discipline in them.
Choose a good diversified equity fund and rest assured they will get good returns. There are regulatory hurdles. Insurance companies don’t accept application forms from people who don’t have an “insurable interest” in the person and mutual funds don’t accept cheques from a third party. This means the couple will have to apply for the insurance cover or mutual fund. Admittedly, this robs the gift of the surprise element. You will have to speak to the couple well in advance and convince them to agree to your proposal. After you have convinced them, the couple will have to complete the formalities and paperwork.
Forms will need to be filled and KYC documents submitted. In you are gifting a high-value cover, the insured person might also have to undergo a medical test. Regulations prevent mutual funds and insurance companies from accepting third-party cheques. So you will have to give the couple the money for the initial payment.
Under normal circumstances, if one gets gifts worth more than Rs 50,000 in a year from anybody other than specified relatives, one is taxed for that amount. However, this clause does not apply in case of gifts received at the time of marriage.