Cut Unnecessary Tihar Expenses and Invest in Insurance

Kathmandu — Tihar, one of Nepal’s major festivals, is celebrated with lights, happiness and festivities. Deusi-Bhailo, religious rituals, gift exchanges and various cultural activities make the festival special. However, in recent years, the tendency to overspend in the name of celebration, imitate others and spend beyond one’s financial means has also grown. Such expenses, often driven by short-term entertainment and social status, can create financial burdens in the long run. Instead of spending excessively during Tihar, people should consider setting aside part of their festival budget for savings and insurance.

While spending during festivals is natural, it is not wise to ignore one’s income and financial circumstances. The purchase of expensive gifts, unnecessary shopping, extravagant decorations and activities such as gambling and card games should be discouraged when they put pressure on household finances. Allocating some of the money spent on such activities towards future needs can help strengthen financial security. Developing a habit of regular saving and insurance can also make it easier to cope with unexpected financial risks.

Insurance is an important means of obtaining financial protection against potential risks. Unexpected events can affect a person’s life, property and financial responsibilities at any time. Accidents, illnesses, natural disasters and other unforeseen events can cause financial losses that affect not only individuals but also their families. In such circumstances, insurance helps reduce the financial burden in accordance with the terms and conditions of the policy. Setting aside a portion of one’s income for insurance can therefore be a responsible decision for the future.

Life insurance plays an important role in protecting a family’s financial well-being. If the primary earning member of a family dies, dependents may struggle to meet daily expenses, children’s education costs and other financial obligations. In such circumstances, family members may receive the insured amount in accordance with the policy terms. Some life insurance plans also provide the sum assured and applicable bonuses at the end of the policy term, offering an opportunity for long-term savings alongside risk protection.

Starting a life insurance policy does not necessarily require a large amount of money. People can choose plans with premiums suited to their income and financial capacity. Even setting aside a small amount regularly can help build a long-term financial plan. Controlling unnecessary entertainment expenses, social spending and purchases of luxury goods can free up money for insurance.

Tihar is also a time when brothers and sisters exchange gifts. During Bhai Tika, sisters give gifts to their brothers, and brothers do the same for their sisters. The tradition could be expanded by introducing life insurance policies as gifts alongside conventional material presents. Gifting insurance policies on birthdays, weddings, Pasni and other special occasions can encourage people to develop an awareness of saving and financial protection from an early age.

Parents can also explore suitable insurance plans with their children’s future in mind. Such plans may help address future needs, including higher education expenses, while contributing to family financial security. This approach encourages the idea of giving gifts that offer long-term value rather than only short-term enjoyment.

Similarly, non-life insurance provides financial protection for homes, vehicles, businesses and other property against potential losses. Property can be damaged by fire, floods, landslides, accidents and other risks. Depending on the coverage and conditions of the policy, insurance can help compensate for such losses. By reducing exposure to potentially large financial losses at a relatively affordable premium, non-life insurance is also important for protecting personal and business assets.

However, insurance decisions should not be based solely on expected returns or bonuses. Plans should be selected according to individual needs, family responsibilities and the ability to pay premiums regularly. Policyholders should clearly understand the coverage, policy term, premium amount, claim settlement conditions, exclusions and provisions applicable if a policy is discontinued before maturity.

Tihar is a festival of sharing happiness and strengthening relationships. Celebrating its true spirit while avoiding unnecessary expenses and conspicuous competition can also help improve household financial management. Rather than spending the entire festival budget on goods and services that provide only temporary enjoyment, setting aside a portion for future protection can be a more meaningful investment.