How Life Insurance Needs Are Met In Different Life Stages
Insurance is a tool that works best as an income replacement for anyone who has financial dependents. As a bread winner, the priority should be to ensure that in case of any eventuality, the surviving family members do not go through any financial stress.
But, buying insurance is not a one-time affair. The insurance need changes as per life stage and one should provide for each one of them.
Mere savings may not be enough!
Saving money without a plan in place may work out even worse. One needs to link his savings in any financial product to a certain goal which he or she is looking forward to achieving in the future. More so, savings through life insurance products are designed to serve the purpose only over a longer term. The design and structure are such that the costing being largely front-loaded works to a disadvantage, if exit is made early. Therefore, life insurance products, be it the traditional endowments and money backs or the market linked Ulips, need to be bought only when the goal is at least ten years away.
Traditional products suit those who are not looking for volatility and market linked returns rather are contempt with conservative returns. Most of the time, returns from them do not even beat inflation, but policyholders are satisfied with protection of capital over long term.
For those looking to bundle protection and savings and looking for higher than inflation returns, choose Ulips with larger transparency of charges, fund options and flexibility. Regular savings in products having lock-ins instil financial discipline and keep the temptation to break investments in a jiffy. Having bought say a Ulip for one’s long term goal of meeting child’s education needs, the ideal way to keep putting premiums would be in the allequity fund option.
Esta historia es de la edición May 2018 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición May 2018 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
Have You Included A Passive Fund In Your Portfolio Yet?
The assets under management (AUM) of passive funds recently crossed the Rs. 10 lakh mark. While a significant portion of this money comes from institutional investors, such as the Employees Provident Fund Organisation (EPFO), these funds are also gaining popularity among retail investors.
Mutual Fund
1. SEBI allows mutual funds to buy and sell credit default swaps (CDS)
Insurance News
1. The finance minister has launched a new NPS scheme named NPS Vatsalya
ASK THE EXPERT
Dear Sir, I attended your webinar on post-retirement financial planning. As advised by your good self, I invested in NPS after retirement.
Market Mystery: Some Important Investing Lessons from Fund Managers Themselves
Mr. Mahesh Patil is the Chief Investment Officer (CIO) of Aditya Birla Sun Life AMC Limited. As the CIO Mahesh oversees INR 3 lakh crore of assets under management.
How to make a cautious entry into equity funds during a bull market
The number of mutual fund folios has been rising, with flows via the systematic investment plan (SIP) route reaching new highs.
All that you need to know to kickstart your retirement planning process
We all enjoy planning for the future. It’s a good idea to plan ahead of time for anything, from the day’s activities to a vacation.
5 Steps To Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.