In this age, where new financial burdens crop up on a daily basis, every single decision we make will have an impact on the future of our family. With rising inflation rates, increasing costs for education, and the absurd levels of unemployment amongst India's educated youth, securing the future in a foolproof manner with nothing left is something we cannot leave up to chance. Having a strong financial planning along with an investment plan that offer high returns is a wise financial decision.
Along with these new waves of problems, life insurance companies and banks have also adapted their plans to fit a modern citizen's needs. Gone are the days when we had limited options and had to make the hard choice between either insurance or savings. In India, several hybrid investment plans offer high returns and additional advantages like death benefits covering various coverages for unprecedented deaths. These also allow you to submit a higher tax deduction rate. These hybrid investment plans are called ULIPS or Unit Linked Insurance Plans.
ULIPS are hybrid investment plans that have characteristics of both life insurance and investment plans. Like most insurance plans available in India right now, Unit Linked Insurance Plans offer life coverage with the added benefit of the investment. However, as the bank would tell you beforehand, the choice of investing in available fund options is entirely up to the policyholder - this implies that the risk of investment is completely on the person in whose name the policy is taken, not on the bank.
Three Ways a ULIP can Optimise your Returns
ULIPS are inherently more profitable than an ordinary insurance policy, and these higher returns come with the risk. Most people prefer to keep their insurance and investment separate. Still, anyone who has experienced the advantages of ULIP can tell you that they are infinitely better than the myriad of investment plans in India.
1. Capital Protection
Whatever sum is assured as you sign up for the policy is guaranteed according to the terms and conditions, provided that you pay the premiums regularly without the termination of the policy. This is a significant capital protection.
Once you outlive the policy's maturity date, you will receive the entire assured sum without being affected by inflation rates. Life insurance is a fixed-cover product and will not give you profits, but the policy's investment element will.
Therefore, the equity fund has the potential to help you beat inflation and accrue a good amount of wealth while having your life insured.
profits, but the policy's investment element will. Therefore, the equity fund has the potential to help you beat inflation and accrue a good amount of wealth while having your life insured.
2. Guaranteed Death Benefit
The death benefit or the sum assured is a fixed sum of money that will be returned to you no matter what, provided you meet all the terms and conditions and no premiums have been missed. However, the investment portion does not guarantee complete returns since it is market-linked - but it may also give you higher returns than you initially thought.
In the case of ULIPS, you will have to wait for a lock-in period of five years (usually) before you achieve liquidity, which implies that you will be eligible for redeeming units in which the premiums are invested in, premature withdrawal, or even a surrendering of the policy at a loss. You have the option to go for a loan at special rates, especially if the ULIP you go for is a plan like the Invest 4G, offered by the Canara HSBC Oriental Bank of Commerce Life Insurance.
How Invest 4G by Canara HSBC Oriental Bank of Commerce Life Insurance can help you Gain Returns?
Canara HSBC Oriental Bank of Commerce Life Insurance Invest 4G is arguably one of India's best investment plans today. The high customizability and innovation behind the Invest 4G has been designed for the modern citizen who wants extra protection in today's age of uncertainty. With an unbeatable combination of portfolio management options, savings, and insurance, this plan takes care of all your financial concerns for the future in one go. Whether it’s the returns from your investment you have your eyes on – or the financial security of your loved ones – this plan can help you achieve your life goals smoothly.
Let us look at the benefits that set the Invest 4G apart from India's other investment plans that gives above-average returns.
a) You can choose to pay for the entire policy term, a limited number of years, or even just once. This makes the plan suitable for customers from all financial backgrounds and with varying levels of urgency to take a savings/insurance/investment plan.
b) Whatever mortality charges are deducted during the tenure of Regular and Limited Premium paying options will be added to the fund value when the policy matures.
c) You have three cover options suited for different life stages - the Life Option, the Care option, and the Century Option.
There are also eight different Unit Linked Funds with varying risk appetites that you can go for - along with the portfolio management options; the right combination can help you maximise your profits. There are multiple portfolio management options from which you can choose, which helps you optimise your ULIP’s returns based on your preferred investment manner.
Choose the right investment plan by assessing your risk appetite and your financial requirements. Not all plans are made to fit in with your requirements. Hence, assess your financial condition and goals before you choose the best investment plan for all your life goals.