How to Beat Rising Costs with Complete Life Cover

A typical drawing-room conversation often alludes to the times when inflation wasn’t such a bother. How often have you heard your parents lament about the high cost of living today? We have moved past

A typical drawing-room conversation often alludes to the times when inflation wasn’t such a bother. How often have you heard your parents lament about the high cost of living today? We have moved past those days when a litre of milk costs a mere ₹5, and a loaf of bread was available for less than a rupee. It seems like a lifetime ago. But even a decade back, you could tank up your car for ₹1000 and get through half a month. What you pay for your toddler's nursery classes today once covered your entire college education.

As per data released by the Ministry of Statistics and Programme Implementation, India’s benchmark inflation rate, measured by the Consumer Price Index (CPI) stood at  year-on-year in December 2021. In December 2020, retail inflation was 4.59 per cent, revealing that there has been a steep rise over 12 months.

These statistics bring to the fore how inflation and changing economies can throw our financial plans off track. Add to it the uncertainties brought on by the pandemic, and you know this is a recipe for sleepless nights. The truth is that the corpus we have put aside for retirement, children's education might not be enough. Even investment in that second home could be insufficient when you are in the middle of a financial crisis.