Tag Archive | "Investment Insurance"

Forget Vacations! This Is What Your Kids Really Want!

  • Easypolicy
  • 17 Mar 2017

These holidays, where are you planning to take your kids?

An international holiday to Mauritius, or Disney Land, or Bali, or somewhere more expensive?

Well, holidays are good and spending money on them is ok too! But, wouldn't it be great if you spent that same amount of money, or maybe even lesser and bought them the safety and security for life?

Yes, we are talking about lifelong financial planning for your kids' future, through methodical and sensible Investment Plans! Investing money for life security is way better than spending it for few days pleasure!

Therefore, more than any national or international holiday this is what they need and why:

Investment Plans

  • A sound investment plan helps you to grow your wealth and build a corpus of funds, to come in handy for your kids anytime at the time of need.
  • They provide absolute life protection to you and your kids as the main component of major investment plans remains life insurance.
  • With healthy returns at the time of maturity, they are the fool-proof planning for long-term goals of your kids' life.
  • The biggest advantage of investment plans lies in the multiple avenues they offer for earning some extra income in the form of bonuses (guaranteed & non-guaranteed), dividends, interests, and much more.
  • There is also an option to earn capital gains from sale of equities and mutual funds. Thus, generating a side-fund for your kids, as and when they want.
  • These plans bring with them an array of tax benefits. While the premiums paid towards life insurance policies are covered under Section 80C of Income Tax Act, the maturity/death proceeds are also tax-free under Section 10(D). Thus, for all the funds your kids can avail, there is never a tax liability for the same.

Term Insurance Plan

  • If you’re the sole bread-winner of the family, a term insurance plan ensures that your kid’s financial independence is retained even if you’re not around.
  • A Term plan offers massive sum Assured at extremely lower premiums that can come handy for all your kids' educational and life planning needs.
  • If you have certain loans to pay off like car loan, home loan etc. and unfortunately you pass away before they are paid off, your kids are prepared to pay-off with the financial planning you did for them through a sensible Term Insurance plan.
  • A term insurance plan is the best insurance you can buy at extremely economical premiums that easily fit into your pockets without making your kids compromise on things that matter.

Child Plans

  • With a child plan in place, the cost of basic as well as higher education can be met irrespective of the fact whether the parent is alive or not.
  • Marriage is one of the most important milestones in a child’s life and requires substantial amount of financial support. A child plan helps to build a corpus at an early age, hence, such expenses are not a threat.
  • In the unfortunate scenario of a Insured parent’s death the child plan offers a feature called Waiver of Premium (WOP) where the child is given the benefits of insurance and investment without having to pay any future premiums after the death of the insured (parent).
  • With prudent financial planning through a child plan, you can strategically mark important milestones where your child gets financial support to meet different needs at different stages of his life. A child plan ensures this pay-out both in your presence as well as absence.

All kinds of insurance and investment plans are debt, equity and hybrid based. You must know your Risk appetite and invest accordingly, so that your kids do not have to suffer. It is advisable to prioritise your kids' future and based on their life-long needs, invest in a plan that offers maximum returns in your presence or absence.

Give the best gift to your kids' which is a life saver throughout! Vacations can wait!


what is a money back plan?

  • Easypolicy
  • 04 Oct 2012

Money back plans are life insurance plans which not only provide Risk cover but also offer guaranteed survival benefits through periodic installments during the Policy Term period. On death of the life assured, the Beneficiary gets the death benefit, which is equal to the sum Assured irrespective of the survival benefits he or she had already got so far. In short, there is financial protection as well as life cover for the life assured.

Let’s find out more on the features of money back plans and the benefits one can get from them.
 
Features of Money Back Plan

Age

Generally, the minimum age of the Life Assured is 13 years while the maximum limit is 50 years. The limits vary from one policy to another.

Sum Assured
 
The minimum Sum Assured is by-and-large Rs. 50,000. There is generally no upper limit.
 
Term Period

Term period is often flexible where the Policyholder can choose a period of 15 years, 20 years, or 25 years.
 
Mode of Payment of the Premium

There are generally 4 modes of payment, which are monthly, quarterly, half yearly, and yearly.

Benefits of Money Back Plan


The money back plans are often considered to be the best investment plans as they provide financial benefit, risk cover, and miscellaneous benefits. For instance:
•In case of death of the life assured within the term period, the total sum assured is paid to the nominee, irrespective of earlier survival benefits.

•Annual Bonus is calculated on sum assured and paid at the end of the term.

•A money back plan is said to the best investment plan as Survival Benefit or the Death Benefit does not incur tax.

•Useful Riders are available with money back plans. Some of the benefits you can expect from the riders include Waiver of premium in case of accidental disability, additional sum assured in case of an Accident or critical illness, and Reimbursement of hospital charges.

•Guaranteed additions are also provided in case the insurance company, which owns the plan, makes a profit during a particular financial year.


Women-Centric Plans, Retirement Plans and Plans for the Mentally Challenged

Money back plans are not just for kids’ education or for those who want to spend money for a luxurious holiday trip. Many retirement plans for the elderly offer money back facilities where regular installments are given to the old couple after retirement. Plans to cater to single yet working women have also been formulated. There are plans that act as an investment policy for the mentally challenged. The benefactor pays the premiums while survival benefit helps the challenged kids in later years after the death of the benefactor. The investment income can be further rolled out into retirement plans for the kids.

Are these Plans Worth Buying?

If you look at a money back plan as an investment option, it may not be the best investment plan. The profit would only be 6-11 percent. However, money back plans are not just investment policy but a life insurance plan as well. It offers Risk Cover and also provides fixed tax-free income which you can depend even for a long period of 20 or 30 years. It is perhaps an acceptable combination of risk cover and savings option which gives you a peace of mind.


when to buy a protection plan or an investment plan?

  • Easypolicy
  • 12 Jul 2012

Worried about the uncertainties of life? You never know what the future has in store for you, but you can plan to keep on celebrating life. In case of any unforeseen events, you can continue to enjoy financial stability. Your family can go on with a comfortable lifestyle even in your absence. This can be achieved with investment plans. There can be no secured way to save and see your money grow. Investment plans are life insurance protection plans that combine the benefit of insurance with investment. While a part of the Premium you pay is invested for growth, the other part keeps you insured.

Types of Protection Plans

Traditional: These are risk-free; you get a fixed return on the Maturity of the Term or in case of death. They can be endowment plans or money back plans. Your money gets invested principally in fixed deposits and debt funds. You enjoy multiple benefits in terms of Risk cover, return and safety

Unit Linked Insurance Plans (ULIPs): These are market-linked and are risk oriented; you do not get fixed returns. Market conditions impact the returns. You enjoy protection and savings combined with flexibility. You can switch, add, and withdraw funds partially or systematically. 

Right Time to Buy Investment Policy

There is always a right time for investment. It should begin right from the time you start earning. Buying an investment policy, you save for your future. You see your money grow. You can use your savings for crucial events in your life. You save taxes and minimize the tax burden. You can look forward towards the flow of income even after retirement. You leave a regular income for your dependent family, thus letting them enjoy financial protection in your absence. There are many possibilities that you can think of buying protection plans at the right time.  

Needs do change with time. When you are single and have no dependents, you may not prioritize on your investment needs. You may not think of buying protection plans. When you get married, needs robotically change. Responsibility crops up so is the increasing sense of dependency of your expanding family on you.

Planned investment starts at an early age. But it can also happen at any age. Investment rates, i.e. the premiums you pay are calculated according to your age. Younger the age, lower the investment rates and vice versa. Protection plans should be planned in such a manner that their maturity dates coincide with crucial events - your children’s higher education, their marriage fund, your retirement, etc. 

Risk-taking Ability

When you buy an investment policy, your age decides whether you should go for traditional or ULIP options. If you are young, you may be ready to take risks. You may then consider for ULIP investment plans. But if you are young, the sole breadwinner and have dependent family members, you may think of traditional plans. Then there are conservative investors who are not prepared to withstand market volatilities. For them, traditional is a better option.

Investment Rates and Maturity

As aforementioned, investment rates differ according to age. Rates also differ from plan to plan. For high sum assured, investment rates are high and vice versa. The maximum maturity date is fixed in protection plans irrespective of whether you buy traditional or ULIP, though for the latter you enjoy the flexibility to choose an investment period. 

How to Buy the Right Plan

Visit a reliable insurance aggregator and facilitator’s website like easypolicy.com where you can get the most relevant and reliable quotes from all Indian insurance companies, where you can make price-feature comparisons, where you can see what each company has to offer, and where you can buy the right investment policy. On this website, you can also get in touch with certified experts who can let you decide right. An informed decision can prove a blessing for your future!