How can life insurance be good for investing? Well, there are many different types of insurance plans that also work as investments. Let us have a look at four such types of life insurance plans-
ULIPsUnit Linked Insurance Plans, popularly known as ULIPs, combines life coverage with wealth creation. In such plans, the insurance provider will invest some part of your investment towards your life insurance and the remaining in debt, equity, or a mixture of debt/equity fund of your choice .
From children’s education, their wedding, or retirement planning, the returns from ULIP can help you achieve a host of your long-term goals.
Endowment PlansIf you are looking to receive fixed returns from your investment in the life insurance policy with a larger life coverage, endowment plan can be a great option. These are fixed term plans where you receive a maturity benefit when the policy matures.
If at all the policyholder expires during the policy term, the beneficiary will receive the assured sum along with bonuses if any.
Child Insurance PlansIf you want to secure your child's future, child insurance plans can be beneficial. These are traditional participating insurance plans which receive regular dividends in the form of bonuses. In case if the policyholder expires during the policy tenure, the beneficiary will receive the death benefit along with bonuses.
Many such policies also have assured payouts, which are paid to the policyholder or even the beneficiary regularly even after the demise of the policyholder.
Guaranteed Returns PlansIn guaranteed returns life insurance plans, your policy receives guaranteed additions every month till the time of the maturity. The additions are based on the premium amount you pay, sum assured, entry age, and policy term.
In case of the death of the policyholder within the policy tenure, the beneficiary will receive the additions along with the sum assured. If the policyholder survives, he/she will receive the maturity benefit along with the additions.
Life Insurance: Security and InvestmentAs you can see, there are many different types of policies that can deliver considerable returns too along with the life coverage. Consult with a reputed insurance provider to know more about these policies if you want your life insurance to double up as a rewarding investment option.
Learn more about our online life insurance plans.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
Are Savings Enough for Retirement?
Financial discipline and life aspirations determine whether your savings are going to be enough for retirement.
5 Benefits of Health Insurance that Makes it a Must Have Cover
Here are the 5 benefits of health insurance that makes it a must to cover
When Should You Withdraw Money from a Mutual Fund?
In case of a sudden change in fund strategy or an underperformance scheme for more than 3-4 years, it makes sense to withdraw money.
How To Apply For Personal Loan
Applying for a personal loan has become extremely easy these days. With the increase in applicants, banks and other financial institutions have made the process very simple.