Insurers have introduced plans that enhance the features and benefits of basic life insurance products to provide 360-degree protection and life coverage. It helps your money grow while saving on tax* as well! And, hence, saving  in life insurance is always considered a smart decision. Let us discuss a little detail in this regard.

Why saving in Life Insurance is a Smart Decision?

Comprehensive life insurance plans provide varied features that ascertain a secure and peaceful life. Here is a detail about it:

1. Combined benefits - While investing in one financial product, you get a combined advantage that includes life coverage and ULIP benefits while saving on tax*. The life cover will provide a lump sum death benefit to your family in case of your unexpected demise. ULIP provides an opportunity to invest in the financial market for increased returns.
   
   
2. Secure investment - People are sceptical about investing in the financial market, considering the uncertain economic conditions and the resulting market fluctuations. However, the ULIP plan provides different investment options based on the risk appetite, such as equity funds, debt funds, and hybrid funds for the people who can afford.You can also switch between the funds based on the market conditions to secure your investments. If you still find it difficult to manage, our expert fund managers help you make the best fund choice wisely.
   
   
3. Long-term benefit - Investing in such comprehensive solutions yields a huge benefit when you stay invested in the long term. The fund value that increased over the policy term will be provided on maturity. You can utilise the proceeds for various goals such as starting a new business, going on a vacation, purchasing a new house or car, pursuing higher education in a foreign university, etc.
   
   It can also be considered a good retirement solution because you can estimate the necessary financial commitments and plan investments accordingly. For instance, your lifestyle would have reformed over the years, increasing the standard of living. If you want to continue with the same standard after retirement, you must work on smart investment decisions today.
   
   It would be best to work on your current monthly expenses, short-term emergencies, and other financial commitments, including the inflation rate. This budget will help you choose the apt investment funds in the ULIP plan to grow your wealth in a coordinated and secure manner.
   
   
4. Cost-effective - Life cover is certain if you are the sole earning member in your family or your family members are dependent on your income for their expenditures. And investment to grow your wealth is also important considering the uncertain global events. So, investing in financial products that provide these benefits is essential.
   
   However, if you invest in different products, the costs involved are more. And, the time and energy used to manage such financial products in the portfolio will certainly be on the bigger end, which may always not be affordable for a person engaging in a busy profession or business. Therefore, saving in a comprehensive life insurance plan will provide the required multiple benefits at an affordable rate with the assistance of expert fund managers.
   
   
5. Flexible features - Investing in financial products should be convenient for you in the long term. It would help if you accommodated the plan based on your nature of income and the extent of financial commitments. For example, with comprehensive life insurance plans, you can pay the premium regularly or for a limited term based on your steady flow income.
   
   
6. Rider^# benefits - Comprehensive life insurance plans also provide rider^# benefits. For instance, you can choose the critical illness rider^# to ascertain financial assistance when diagnosed with a critical illness. It will cover all the medical expenses incurred, including hospitalisation and other medical expenses.
   
   Therefore, if your family has a medical history of cancer, for instance, you can opt for this rider^# to make the insured amount payable during an emergency, saving your family from the financial burden while treating the disease.
   
   
7. Life insurance tax* benefits - The premium amount paid for life insurance plans and the sum received to qualify for tax* deduction and exemption under Section 80C and Section 10(10D) of the Income Tax Act, 1961, respectively.
   
   

Conclusion

Investing in such plans is a smart decision because it provides multiple benefits, long-term investment benefits, rider^# options, and a secure investment platform to grow your wealth.
 

Therefore, if you choose to invest early in life, you can receive these combined benefits of life insurance at your advantage cost-effectively. Educate yourself on life insurance plans, prepare a financial budget, modify the plan to accommodate your money goals, and get financially independent with such a smart investment decision!

L&C/Advt/2022/Nov/2937