Which plan should you opt for secured future?
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
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