How does a life insurance help you plan your retirement?
Life insurance is a unique product that gives you the comfort of a life cover as well as a long-term saving scheme. While, there is no alternative to saving for a peaceful retirement, you must buy life insurance wisely to gain attractive long-term returns. Here’s how life insurance is ideal for saving for your dream retirement:
| A source of regular income |
Fulfill your aspirations |
Plan a peaceful life ahead |
| Life insurance provides protection against loss of income through convenient payout options. Just like savings, small monthly premiums build up to a corpus for your retirement. |
Guaranteed vesting benefits in life insurance plans are ideal for building a corpus to plan for future needs like travelling, practicing hobbies and buying a house etc. |
Life insurance can help you have a planned retirement, which ensures you have enough savings built up to lead an independent and worry-free retired life. |
How can you ensure maximize your returns with life insurance?
Besides providing a life cover, plans like Invest 4G can help you build a corpus for your retirement with the help of unit-linked returns. All you got to do is choose the right funds. Here’s how –
Ensure you invest the right amount in equity and debt investments
Having a balance between your investments is important to gain better returns; nor would being too safe or being too adventurous help. There’s a typical investment formula that experts suggest – Take 100% as your total investment and minus your age. Say, you are 30, then 100-30=70, therefore you should invest 70% of your investment value in equities and the remaining in debt.
- Make fund selection based on your current investment portfolio
So, if most of your investments are in safer areas like bank deposits, you can choose to invest in higher equity funds to balance your investment and get better returns, also vice-versa.
- Figure how much time you have and the magnitude of your investment goal
In case you wish to invest for your child’s higher education or buying a house, you may want to invest higher in equities as you have more time in hand. The longer you invest for, more is the boost you can expect on your returns.
How to ensure you save enough for your retirement?
| Identify the future needs |
Start as early as you can |
Have adequate insurance |
| When saving, the first step should be - to identify a rough range of finances that may be required basis your retirement goals. Create a broad plan and keep space for miscellaneous expenses that may pop-up. |
Saving is a habit that must be inculcated as early as possible. Also, with the rising inflation and expenses, you need to start at an early stage, considering what will be the rise until your goal is achieved. |
While we hope everything ends well, there can be unwelcomed surprises by life. Plans with an added life insurance benefit can ensure your family receives your savings and can reap the long-term benefits of the plan. |
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customerservice@canarahsbclife.in
