Gift Wrap: Give Your Mother Financial Security

The value mothers provide to the home through daily activities is massively underestimated. So with Mother’s Day just a couple of days away, it’s time to start a gift-hunting drive for the most important woman in your life. Two U’s play a key role in the selection of a gift — uniqueness and utility. Although flowers and cards are timeless gifts, they don’t score highly on the utility and uniqueness scales. Similarly, while the utility of jewellery and clothes is unquestionable, they lack the uniqueness quotient. So what do you do? No need to rack your brains looking for a perfect Mother’s Day gift…….

Here’s a suggestion. How about giving her something that would make her feel financially secure? If you are a working man/woman, read on and find out the best gift for your mother this mother’s day.

Gift an investment more on the lines of an insurance policy, one that would provide monetary benefits to support her in old age. Just in time to fund her monetary needs. Acquiring LIC’s Jeevan Bharti (a special plan for women) is a good option to do so. It will be an building exercise, which means that the benefits of the plan will be derived by your mother at a later date. This is a with-profits plan offered to women. It provides life insurance cover throughout the term of the plan along with the periodic payments on survival at specified durations during the policy term. The plan also provides the cover against affliction of certain Female Critical Illnesses.

You can also acquire an medical insurance policy for her since medical insurance is a must-have for everyone. In these days of expensive healthcare and rising expenses, health insurance is very important. Firstly life insurance will help her to get timely medical care that she needs to stay healthy. Secondly, it will take care of the emergency expenses that arise without any previous warning. The tax benefits on buying a health cover for parents — irrespective of whether they are dependents or not are an added incentive. The Union Budget 2008-09 has provided for an additional deduction of Rs 15,000 every year under Section 80D if you pay medical premiums for your parents. If you hail from a small or mid-sized town, you should look at a cover of Rs 2-3 lakh for your family. If you reside in a metro, then you should not look at covers less than Rs 4-5 lakh.

If she is a senior citizen with no income or does not fall into any income tax bracket, you can invest in 9% SCSS. High interest fixed deposits, too, will help in meeting liquidity and contingency needs.

Gold is an all-time favorite with women, so it makes for a great Mother’s Day gift. This apart, it is good investment avenue in volatile times like these and is an effective hedge against inflation. Also, you need not gift her physical gold alone. Depending on your budget, it could be a mix of gold ETF, gold funds or even gold coins. You will not be liable to pay a gift tax on the presents that you shower on your mother.