Which plan should you opt for secured future?

Posted by Ankita G.
2
Jan 5, 2016
249 Views
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We all aspire for happy and lavish lifestyle. For this we constantly strive to make some form of investments such as stocks, gold, mutual funds and so on to yield some good returns from the market. However, with the stipulated source of income and growing inflation rates the major concern that consumers has is while running the race of investment earnings their families are left uncovered which only sums up to their problems. Therefore, with a thorough market analysis, financial experts suggest one of the best ways to enhance your funds in systematic pattern and also protect your family well during this race would be going for Investment Insurance Plans. Thus, policyholders get the benefits of both the world’s methodological savings as well as protection cover.

In Investment insurance plans part of your fund goes for insurance cover and the rest is diverted into equity, debt or balanced funds for revenue generation. So whether you’re looking to fulfill your long-term goals or take care of your short-term responsibilities investment insurance could surely help you meet your desired targets if planned and executed well with the help of expert advice.

The modern day financial gurus termed such policies as variable life policies which resemble to their conventional cousin, traditional whole life policy.

Unlike a traditional whole life policy, you as the policyholder have a great deal of latitude in choosing where your premiums are invested. Typically, the choices range from stocks and bonds to mutual funds. Because these are securities based investments, regulations require that you receive a prospectus before investing.

Since Investment insurance plan are hybrid product rather than a fixed premium, there is a pre-established range of premium payments. You can choose the payments so long as they fall between the minimum and maximum allowable amounts. The minimum premiums are intended to cover most or all of the insurance costs.

The flexible premiums allow you to grow your cash value at your own pace, so the more you pump in, the better could be the returns expected. One of the best advices would be if your investments are performing well, you also have the option to use the interest and dividends to pay a portion or your insurance premium.

Advantages

Besides helping to build large corpus over the long-term phase, Investment Insurance Plans can also be utilized to tax benefits for investors under section 80C and 10(10D) of Income Tax Act. Consumers can also get a loan against such policies. This investment insurance serves as protection for investors and his/her family.

Since investment insurance policy need lot of permutation and combinations you need to have an adequate research before stepping into the ocean of opportunities. It is advisable take an advice from a financial expert and make them aware of certain important facts like your income strength, age, family needs, future forecasts, demographics etc. which proves crucial to decide the channelizing of funds for better returns.

Follow the simple steps given below:

 

•Review your financial needs, Risks taking potential and returns expected time. Work upon a strategy with financial expert and then choose a suitable investment insurance plan

•Go with small investment and wait for some positive outcomes and then go for gradual increase

•Opt for liquidity and fixed investments. It helps use your investment in emergency as well as curb over-expenditure of the same.

•Ensure you have switching option

•Keep a tab on your annual portfolio

•Based on your comfort choose an uninterrupted premium payment mode

It is advisable never get to emotional with investment strategies, as it will only lead to huge losses at times. While choosing investment insurance plans one should think calculative and not get over-exposed to single market instrument. Always compare various investment plans because not every plan will help you fulfill your investment goal. Try and evaluate every aspect of a plan and then make go for the purchase.
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