Though 20% of the world’s population resides in India, 76% of Indians above the age of 18 years have little or no awareness about financial concepts. This influences their ability to make wise investment decisions and secure their future.
No wonder then that, in 2017, Indians merely accounted for 328 million life insurance policies as per data from the Insurance Regulatory and Development Authority of India (IRDAI). A whopping 988 million Indians are left uninsured (in terms of life insurance) and still financially vulnerable in case an emergency strikes.
Understanding the importance of life insurance and its finer details is vital to recognising how it could help secure the financial future of your family. However, one would generally need to bear in mind that not all policies are the same. Life insurance policies come in all shapes and sizes and to choose one that fits like a glove is to understand the finer distinctions between these policies.
For instance, a life insurance plan might either be participative or non-participative in nature. It is vital to understand how both of these differ from each other and what their advantages are, before proceeding with your decision to buy a plan for yourself. Here are a few pointers to keep in mind:
All said and done, a participating policy such as a unit-linked insurance plan (ULIP) is a win-win investment for the future. You can save tax on the amount invested, the interest earned as well as the maturity amount upon withdrawal. You can enjoy higher returns and take advantage of market conditions to increase your wealth. Apart from this you also get the benefit of life insurance, the cash value of which is protected by the company assets as well as guidelines laid out by the Insurance Regulatory authority of India.
The Invest 4G plan from Canara HSBC Oriental Bank of Commerce is a participating plan that allows you to choose from 7 funds and 4 portfolio strategies as per your risk-taking ability. It gives you the flexibility to switch or redirect between funds depending on market conditions and make partial withdrawals in order to meet an emergency in the family. Loyalty additions and wealth boosters further make it more attractive. So grow your money, as you secure the future of your loved ones with a ULIP that gives a fillip to your life savings and helps you realise your dreams.