In addition to offering investors financial coverage and protection, life insurance can be a vital wealth-building tool. When you pay your policy premiums on time, you are actually setting money aside to cover larger expenses that you may incur in the future in the event of an untimely circumstance. To build real wealth, you need to protect your most valuable asset – your life.
Life insurance offers you the benefits of systematic long-term savings, and the power of compounding which aids wealth creation. As your wealth grows, it becomes increasing important to safeguard it with a life insurance policy that protects your family from loan liabilities and financial obligations that may occur in the event of your untimely demise, planning for future expenses, as well as protecting your wealth.
Things to Consider
- Lifestage – At every stage of life, it is important to secure your finances now to ensure a strong future and build wealth.
If you are single, while you may have fewer responsibilities and financial obligations, you can take advantage of power of compounding over the long term and create wealth. What's more, your premiums will also be so at this stage, you may want to look at a smaller insurance policy that will pay off your loans and debts in case of an unfortunate event.
If you are newly married or have kids, you have additional responsibilities, goals and aspirations Owning your dream home or funding a child's higher education may be on your mind. One critical factor that always needs to be prioritised is the financial stability of your family. At this stage of your life, you may want to consider locking in a lower rate on a policy that will remain in place for the next few decades. If you are thinking more on a long-term basis, you can consider buying an affordable whole life policy that will remain in force throughout your life time and at will also provide benefits to your family in the unfortunate event of your demise.
- Type of Plan that can help – Whether you are a single individual who has just started out on your own, a newly married person with plenty of dreams and aspirations to achieve, a loving parent who wants to fulfill your child's dreams or a retiree who wishes to live the twilight years of your life independently, Reliance Life Insurance has many plans that will suit your needs.
- Participating policy and Non-participating policy – Participating policies allow you the benefit of receiving the profits of the insurance company in the form of bonuses. These policies provide dual benefits of protection and returns. Bonuses are usually paid annually and depends on the terms and conditions of the policy. Non-participating policies do not entail the sharing of profits.
ULIP Plans – ULIPs are Unit Linked Insurance Plans that give you the dual benefit of investment cum protection by offering you life insurance cover as well as market linked returns on your investments. By investing in a ULIP, part of your premium goes towards providing life cover, whereas the remaining amount is invested in market linked investment options such as mutual funds. You have a choice of a variety of funds available under the plan you choose and the flexibility to manage and switch between the funds you opt for. Your returns depend on the performance of the fund you select. With ULIPS, you can opt to pay your premiums as a single lump sum, or break it up into smaller components to pay either annually, half-yearly, quarterly or monthly, based on your convenience.
For more information on our ULIP plans click here.
Endowment plans - Endowment plans let you decide the amount you would like to set aside as your Sum Assured based on your current financial position and your expected future expenses. These plans provide you with the benefits of life cover, and create long-term savings to fulfill your goals at every stage in life. With endowment policies, you are paid a lump sum amount on survival as well as death. The maturity periods of endowment plans are generally 10, 15 or 20 years. If you need a certain sum of money at a particular age in future, investing in an endowment plan would be perfect. To know more about Reliance Life Insurance Endowment plans click here.