Top Investment Product Categories in Insurance:

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Top Investment Product Categories in Insurance:

ULIPs or Unit Linked Insurance Plans are the easiest way for a consumer to enter the stock market with an added advantage of life cover. As these products provide tax benefits and market linked returns, they are one of the best long-term investment plans. ULIPs offer many investment funds to choose from which allow you flexibility to shift between equity and debt, based on the market conditions and risk profile.
Traditional Endowment plans are regular saving plans which help build a corpus and give guaranteed maturity benefits along with bonuses. These products give you returns equivalent to a fixed yield/deposit but also combine insurance risk cover and add-on riders to primarily build the safety cushion in case something goes wrong.
Moneyback Plans are a type of endowment plan which give periodic cash payouts to investors. As they help build regular large capsules of fund; they are very useful for salaried class who wish to save for buying large assets every 3-5years.
Child Plans are saving instruments which help parents build a protected asset for their child’s future. They also provide many insurance features which protect the intent or reason for corpus building; primarily for child’s future education and expenses.


Key things to remember while investing in an insurance plan

  • Set financial goals - both short term and long term
  • Maintain balance between risk and returns; allocate amount accordingly
  • Investments should be both liquid and fixed. This enables you to use them in emergencies as well as avoiding overspending
  • Best is to start with small and gradually increase invested amount. Choose premium payment options ranging from monthly to annual to single premium
  • Research a lot before investing; use help of financial planner if need and invest in the best investment plan
  • Review portfolio each year and make changes accordingly
  • Ask questions - Resolve all your doubts before investing. Use investment calculator to calculate exact premium before buying

Avoid

  • Over exposure to single market instrument
  • Over-investing which could burden present finances. Many a time people invest more than what they can comfortably put aside after meeting regular expenses resulting in cancellations. The cumulative effect of such cancellation is losing your hard earned money in penalties.

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