Best Investment Plan in India | Primassure LLP
If you do not plan your finances in advance and fail to
protect your loved ones from the vagaries of life, The journey called life can
become a living hell. It is therefore of utmost importance to keep your money
invested in the right avenues so that it not only provides you a security net
but also acts as an effective savings tool.
This is exactly where life insurance comes in as
a perfect fit to your needs of security and savings. Life insurance products if
weaved into one's asset allocation strategy, based on the risk appetite of the
customer, can act as an effective method of enhancing one's wealth.
Over the past few years, the Indian insurance industry has
become more customer-centric and caters to investors with products that offer a
host of beneficial features over and above the core objective of life
insurance. If used well, some of these products can serve not only serve as
savings tools but act as wealth creation instruments for investors, while
providing them the safety net that any insurance products come with.
Savings plans offer added benefits
Take for instance insurance savings plans that
can not only take care of the needs of your family but also provide you the much-needed
flexibility to withdraw money from your policy in order to support major or
minor events of your life without you having to surrender your policy.
Similarly, a host of insurers offer online term
plans that have especially gained ground with young investors in the recent
past. Apart from adequate life cover, they offer the benefits of regular
monthly income or increasing monthly income as per the choice of the investor.
Products such as these be used as effective life stage planning products such
as buying a house, investing in your child's education and marriage and planning
for a comfortable retirement.
New and improved ULIPs are effective long term investment
plans
Speaking of long-term investment, another
insurance product that deserves a befitting mention is Unit linked plans or
ULIPs that offer tax-efficient and seamless transfer from debt to equity and
back. Barely five years ago, ULIPs were much criticized for their high fee
structure and mis-selling by distributors for the lure of high commissions.
This forced a whole host of reformatory measures
that were made applicable to ULIPs. As a result, under the ambit of the new
guidelines, ULIPs as an insurance cum investment product comes with very low
charges and are even cheaper than their corresponding mutual fund products.
ULIPs, therefore, is now an excellent solution for risk cover, tax benefits and
long-term investment opportunities rolled into one.
Investors can choose an appropriate plan based on
their risk appetite as ULIPs offer a whole range of low, medium, and high-risk
options under the same policy. Consumers also have the flexibility to choose
the investment ratio and the sum assured in the annual targeted premium and can
also avail of the benefits of one-time enhancement in their investment
portfolios through top-ups.
Thus as we have illustrated, life insurance
products can be used as savings tools that can not only generate regular income
but can also help you plan for important events in your life. Apart from that,
when you use ULIPs as a long-term savings product, you can create wealth over a
period of time, even if you are risk-averse and do not want to go the whole hog
by investing directly in inequities. All you need therefore is a good financial
plan that accommodates such insurance products based on your risk appetite and
over a period of time you will have successfully built a portfolio to be proud
of.
Blog: Financial Fear
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