A two way solution for the one time concern: Financial Security

Uncertainties surround us every single day on what the future holds. Therefore opting for an insurance or investment is something that we look for, to give the desired financial security for our family. One of the major obstacles is that if you have a limited income source then you would have to choose only one option at a time which would be either taking a suitable insurance cover or put your money in an investment vehicle to earn the desired returns.

However, insurance companies in India very well understand your “Need of the hour” and requirements, and hence have come up with investment insurance policy plan which holds a combination of both to beat the uncertainties of tomorrow. Investment insurance plans are designed with concept in which certain percentage is deducted towards your insurance coverage and the rest of the amount is set aside for investment purposes.

Depending upon your individual risks or debt, incomes sources, future requirements, age and other factors you can choose the type of fund you wish to invest; aggressive, defensive or rather a mix of both funds.

While the advantages of investment-linked insurance policies are clearly outlined, one still need to compare the plans across various insurance companies in India. This way you can ensure that according to your financial plan which policy can give you better results or rather you could say desired result after the maturity period. 

Every product would be unique and loaded with benefits; however, it’s the comparison that gives us more transparency on which plan to be adopted to fulfill the needs of financial security for our family.

Besides this, there are certain parameters on which you can gauge the performance of your plan such as:

Length of Financial Protection

Every insurance company holds its unique selling point which is being advertised to general public. While some give assurance of returns, some assure to protect your long term or short term goals and depict the road to fulfill them. You need to analyze well, compare plans, your goals and the output and only then go for the actual decision making on plans. 

Tax and Charges

Most companies assure you to give best returns. But the actual yields after the tax cuts and charges like administration charge, process fees, fund allocation charges, etc. is what you should ideally concentrate upon. It helps shield investor's gains from being cut by the taxes and also gives an understanding on the hefty fees or charges applicable on the plan.

Benefits

Although money is what matters in the end, you also need to look beyond the money horizon sometimes and see if you could get time bound benefits. Check if you get waivers on premium payments if you’re unable to pay them due to any serious financial crisis, job loss, or due to any other emergencies. Is the policy covering up critical illnesses that need bigger financial cushioning or accidental deaths? Are you able to take a loan in case of emergencies? These would be some of the ideal points that you should be focusing upon while deriving benefits on your investment insurance plans.
Age Factor

Investment insurance policies are ideally beneficial if taken for a long term period. Since it is a market driven earning you cannot gauge the performance of your funds within a short span of time. Therefore, you need to hold your horses back and wait for the policy to get matured enough until you come to final consensus about the returns. Never surrender the policy in a panic call. Opt for the investment insurance at the age where you or your family can yield the benefits at the desired time in future.