Shelter family with suitable cover & good financial returns

Life insurance is one of the best financial security tools for any individual who wants to create a shield across his or her family during their absence. While for some it’s a pure financial cover for family, other can use it as tool of income protection in case of untimely death. Some may also use them to escape from the clutches of taxation.

But in all , the real purpose of life cover is lost which means providing financial protection against premature death. Often middle class people with the stipulated source of income stay in dilemma whether to provide pure cover to family or earn some good returns from markets for sound future. Insurers purely understand the concern of consumer and have come up with hybrid plan which provides wealth creation along with insurance protection as known as investment insurance plan.

Investment insurance policies offer customer dual benefits of good amount of insurance cover and medium for investment and financial growth. They come with varying tenure from around 5 years to as high as 30 years. Often termed as conventional insurance plans they provide a fixed benefit to the policyholder both in the case of death and in case of maturity.

There are hundreds of customized plans being offered by numerous companies, that will best suit your needs and requirements and fit into your budget as well. All you need to do is search for plan with suitable tenure, lower premiums, greater benefits and higher returns. Online sites are great place to start comparing policies in terms of features and benefits, discounts, payment flexibility, tenure, fees structure & charges, returns etc. as they help you easily to compare the cost of insurance and also provide you variety of options to choose as per your requirements.

Advantage of Investment Insurance plans:

Guaranteed Income: Since these are medium to long-term plans and market based, person can take a call and gather returns to some extents. The plan emphasis on giving reasonable returns at the end of the tenure. However, it’s better to consult financial expert for more in-depth knowledge on how to gain maximum benefits.

Growth in Dividends: The investment revenue is shared out among the policyholders through yearly announcement of bonus and/or dividends.

Risk Security:  Life insurance cover already guarantees financial safety to your dear ones in case of unexpected incidence which might cause demise/death

Tax Benefits:Investment insurance plans offer tax-benefits that apply for both at entry and exit period of the plan. Besides the returns earned from market-linked funds are also tax free.

Before investing in these policies it is important you first understand your family needs, financial goals and the timeframe you want the goals to be achieved. Learn about your income sources, debts and asset value in hand. Once done you evaluate your risk potential to make investment in funds. Your age will too count in this matter. Younger is your age better you can play around in equity based funds and manage to produce balance results at the end of tenure. Short-term investment insurance is a complete no-no as you cannot predict market movements, future projections in short span. Therefore, an ideal investment insurance plan should be medium to long term so that you consult your financial expert and understand markets well, switch funds if desired and produce good source of income for your family.  Lastly, monitoring of your funds is a must. You have to see which fund is working for you and which is not. Stagnant funds have to be switch across and work upon well for your benefits. These policies need good knowledge of market movements, projection and forecasts.

It is advisable, be aware on policy fee charges, upfront fees, management fees, fund switching fees, as well as partial withdrawal fees, which may be applicable, if you choose to cash out a portion of your policy value while your Best Investment Plan is still in-force. Your returns will prove beneficial if you save costs in these policy charges.