Is Life Insurance a Good Strategy For Investments?
Tuesday, December 11, 2018, 6:00 PM | Leave Comment
Life insurance is one of the most preferred investment these days.
Not only millennial but people across all the age groups prefer to invest in various kind of investment plans.
Whether to invest in a life plan is completely your decision. You can take a decision only after going through various plans thoroughly and take your decision accordingly.
Types of Life Insurance Plans
The best part of an Insurance is you can choose from a variety of plans. A life insurance offers so many plans that you can choose a customized one for yourself.
Some of the common plans to choose from are as follows.
Type of Life Insurance Plans
1. Endowment Plans
2. ULIPS
3. Term Plan
4 Child Plans
5. Retirement Plans
6. Money Back Plans
7. Lifetime Coverage
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Endowment Plans
Endowment plans are also called traditional plans. These kinds of plan can act as insurance as well as investment. It’s available at a very less investment of premium amount. Returns you get is after the maturity period of the policy only.
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ULIPS
ULIPS plans are the market-linked plans. They provide you with insurance and act as an investment as well. Returns you get in such plans are purely market linked. You may get very good returns or less as per market volatility. Usually, people who stay invested for a longer duration of time can encash better returns.
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Term Plans
Term plans are pure life insurance plans that cover the risk of your life. It is the best plan to secure your family financially.
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Child Plans
Child plans is taken to secure the future of your children. By investing in this plan at an early stage you can accumulate required funds for your kids at a later stage of their life.
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Retirement Plans
You can secure your old age by retirement plans. Bureaucrats may already have fixed pension but how about private sector employees? The only way to get assured monthly income even if you are not working is through pension plans. Even a government employee can take a decent retirement plan to get an additional source of Income.
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Money Back Plans
Money back plans can give you the required money as and when you need it. Withdrawl duration may be subject to the terms and conditions of the plan. You can make an investment in such plans as per your requirements to get desired assured returns.
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Lifetime Coverage
Lifetime coverage plans cover risks of your plan till 100 years of age. This coverage is usually not facilitated in any of the term insurance plans. You may get the survival benefits if you cross the age of 100.
Features of Life Insurance Plans
Some of the features of life insurance plan that can give you the better idea of various life insurance plans are as follows.
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Covers Life Risk
One of the best advantages of the life insurance plan is, it covers the risk of your life. This plan can be the biggest support system for your family. They don’t have to compromise in their lifestyle even in your absence.
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Tax Management
Section 80 C of Income Tax 1961 has given facility of managing the tax of the policyholder. You can save up to Rs. 1,50,000 with the help of your insurance plan.
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Assured Returns
Some Life insurance plans give you assured returns if you stay invested till the end of the policy period.
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Achieving Financial Milestones
You must have set certain financial goals for you and your family. Have you ever thought about how your family can achieve it in your absence? It can be possible only through a life insurance plan.
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Securing Children’s Future
Your children are your responsibility. The best way you can fulfill their major life goals is by providing them the best education. Good education comes at an exorbitant cost beyond the reach you of any middle-class person. However, it can be secured and managed by buying a child plan.
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Protecting Your Income
With the increasing unemployment, professional hackers are growing at an alarming rate. Your money lying in the banks may not be secure. By investing it in multiple insurance plan you always secure it. At the same time, you also get in the habit of compulsory savings.
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Support System
Your Insurance plan can act as a savior in all aspects. Not only you are securing your life but also creating a corpus of funds that you can utilize as per your convenience.
How Can You Buy Life Insurance Plan?
If you consider life insurance as a wise investment like many than you can buy it conveniently. There are online comparison sites like PolicyX that can give you details of all types of life insurance plans. There are a lot of insurance players you can choose from. Some of them are ICICI Prudential, Max Life, PNB MetLife and many more.
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