Investment Options

Why saving in life insurance is the need of the hour?

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In the modern day world of commercialization, advertisements and attractive packages influence us to make impulsive purchases without thinking twice, which leaves very little or even none for savings.

Life insurance proves to be a great saving tool as it not only fulfills the need for savings but it also provides protection to our loved ones during uncertainties.

Prerna is a fresh graduate and is embracing the professional world for the first time. The fact that she is financially independent is exciting. Being a millennial Prerna is highly loaded with the online ads, notifications and e-commerce sites that would tempt her to buy multiple things that were not actually required.

Prerna’s parents realized that she was spending way too much on unnecessary items and they wanted to explain to her that she should save regularly for her future goals.

As an impulsive buyer, Prerna needed a plan that would help her invest in a disciplined manner as she could not rely on her own self-discipline to stash away some of her monthly income.

This is why, Prerna’s parents thought of advising her to invest in Edelweiss Tokio Life Wealth Plus.

Edelweiss Tokio Life Wealth Plus is a Unit Linked Insurance Plan that enables systematic monthly investments that can help one accumulate and grow his/her wealth. It is a plan where the policyholder is not the only one investing, in fact, the company also invests in the funds chosen by the policyholder in the form of additional allocation and premium booster. The premium boosters invested by the company increases at regular intervals as the policy term increases. There is a five year lock-in period which encourages saving for your long-term goals. Edelweiss Tokio Life Wealth plus is a tax saving investment plan as the premiums paid and return received are exempt from taxes. The power of compounding along with the rupee cost averaging makes unit-linked insurance plans in India a preferred choice.

Prerna’s parents were successful in convincing her to choose this online investment plan that will help her not only save for her goals but also reward her for consistently saving by providing her additional allocation and premium boosters as a bonus.

Life insurance can be an affordable way to save money way beyond what a basic savings account can offer. A life insurance policy can be an important part of your portfolio. It can not only help you to build your wealth but also provide you a security blanket if something unfortunate were to happen to you. You don’t have to worry about your family’s future in this situation.

There are other types of life insurance products in the market as well that can be used as savings tools:

  1. Whole Life Insurance pays out the sum insured upon the death of the insured, as long as the renewal premiums are paid. This form of life insurance policy also offers cash value after a certain period. This cash value increases over the years as the premiums collected are invested and accumulated by the insurer. The insured may opt to withdraw the cash value if the need arises but the protection element will also cease unless the insured withdraws only a portion of the cash value and keeps the balance with the insurer to remain protected.
  2. Endowment Plans is typically purchased as a form of compulsory savings. It provides guaranteed returns.Endowment policies combine protection and savings, where the money is paid at the end of a specified period, upon the maturity of the policy. If the insured dies prematurely, all premiums will be provided to the nominee.

Thus illustrated, life insurance products can be used as savings tools that can not only generate regular income but can also help you plan for important events in your life. All you need therefore is a good financial plan that accommodates such insurance products based on your risk appetite and over a period of time you will have a successful financial portfolio that can make you feel proud in the future.

In Prerna’s case, her main purpose is to invest for her future goals in a systematic and disciplined manner.

It is advisable to start as soon as possible so that the power of compounding can create miracles to grow the amount saved.

On this world saving’s day make a prudent choice by saving your money in online life insurance policy today!

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