Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises.
In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably.
Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance
Life insurance, especially tailored to meet financial needs
Need for Life Insurance
Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.
Let us look at these unique benefits of life insurance in detail.
Asset Protection
From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation.
The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.
Goal based savings
Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.
Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.
Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.
The table below gives a general guide to the plans that are appropriate for different life stages.
Life Stage Primary Need Life Insuarance Product
Young & Single Asset creation Wealth creation plans
Young & Just married Asset creation & protection Wealth creation and mortgage protection plans
Married with kids Children's education, Asset creation and protection Education insurance, mortgage protection & wealth creation plans
Middle aged with grown up kids Planning for retirement & asset protection Retirement solutions & mortgage protection
Across all life-stages Health plans Health Insurance
To find out, which ICICI Prudential plan will best suit your requirements, play the Wheel of Fortune game by clicking here
What is your Human Life Value?
Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to the financial support you offer your parents, spouse or children. This worth is referred to as Human Life Value (HLV). In the future, if your family does not have the protective blanket of your presence, they will no longer be able to enjoy the benefits of the income you earned. Put simply, Human Life Value is the present value of your future earnings.
Why should you calculate your Human Life Value?
You should calculate your Human Life Value so you can accordingly invest in insurance plans that provide your family with adequate finances and hence security even in your absence.
How do you determine your Human Life Value?
Your Human Life Value is determined by 3 factors:
1. Your age
2. Current and future expenses
3. Current and future income
As a thumb rule, if you are 30 years of age, you should insure yourself for an amount approximately 8 times your annual income. At 35, your investment should be close to 6 times your income. Of course, the exact amount of your investment should be determined by the number of people who depend on you, your existing investments and your life stage. For example, if you are 30 years of age and have two children and parents to provide for, the amount you invest should be reflective of your requirements.
Calculate your Human Life Value NOW
Use our quick and easy Human Life Value Calculator to determine your Human Life Value and the corresponding amount you should invest. Start right away!
All through your life, several significant events the birth of your child, moving to a larger home, his or her education and wedding, buying a new car, retiring from work will occur at various stages and demand your financial commitment. If you plan in advance for these events, you will quite naturally be prepared when they occur.
Life insurance is an effective tool that assists you to plan for your future such that you are financially equipped to meet all your goals.
Our special tool, the Life Stage Profiler, assists you to plan for a secure financial future. Please use the tool, right away!
Which important goals should you plan for in advance?
1) Your family's protection - so that your loved ones are secure should an unfortunate event happen to you. Life insurance can guarantee that your family receives a lumpsum that safely tides them over any financial crises that might occur in your absence.
2) Child's education: As parent, your primary responsibility is to guarantee your children's future. Our Education Insurance plans ensure your child receives money at key stages of his or her education even in your absence.
3) Savings: Savings plans allow you to steadily save towards a pre-decided goal in a secure manner. These plans provide you with a host of benefits. You can choose the premium, the underlying fund in which you want to invest your money, the ratio between protection and investment as per your requirements.
4) Retirement: Retirement plans help you secure guaranteed income for your retired life. During the Accumulation phase, you systematically save while you are working. When you retire, the Payout stage of the plan begins. You then purchase an annuity, which will serve as a steady stream of income, for the rest of your life.
6) Health: An integral part for financial planning is protecting oneself against any medical emergencies as well. Hence, a very prudent decision would be to choose a combination of plans that look after your finances and offer you a protective health cover to ensure your financial planning is in track despite any major illnesses.
ICICI Prudential offers 3 comprehensive benefit-based products that cover major critical illnesses.
Types of Insurance Plans - Traditional or Unit Linked
Insurance Plans - At a glance
Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments:
Unit Linked Insurance Product
ULIPs have gained high acceptance due to attractive features they offer. These include:
Flexibility
Flexibility to choose Sum Assured.
Flexibility to choose premium amount.
Option to change level of Premium /Sum Assured even after the plan has started.
Flexibility to change asset allocation by switching between funds
Transparency
Charges in the plan & net amount invested are known to the customer
Convenience of tracking one’s investment performance on a daily basis.
Liquidity
Option to withdraw money after few years (comfort required in case of exigency)
Low minimum tenure.
Partial / Systematic withdrawal allowed
Fund Options
A choice of funds (ranging from equity, debt, cash or a combination)
Option to choose your fund mix based on desired asset allocation
Traditional Plans
These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are:
Steady Investment
Major chunk of investible funds are in debt instruments
Steady and almost assured returns over the long term
Features
Death benefit is Sum Assured + guaranteed & vested bonus
Helps in asset creation as they are for a long tenure
Premium to Sum Assured ratios are fixed for each plan and age.
Generally withdrawals are not allowed before maturity
Life Insurance Plans
Call toll free (MTNL/BSNL)
1800-22-2020
On the basis of which life stage you are in and the corresponding insurance needs, ICICI Prudential plans can be categorized into the following three types:
Education Insurance Plans
Wealth Creation Plans
Premium Guarantee plans
Protection Plans
One of your most important responsibilities as a parent is to ensure that your child gets the best possible education that can be provided.
ICICI Prudential offers a wide portfolio of education insurance plans that are designed to provide peace of mind to you, as a parent, that your child's education will be secure. These plans ensure that money is made available at the crucial junctures in a child's education - Class X, Class XII, graduation and post-graduation - to fund crucial commitments for the child's future.
Importantly, education insurance plans ensure that in the unfortunate event of the death of a parent, the child's education continues unhampered.
Under the education insurance plans platform, ICICI Prudential brings the following products to you. Please click on the product name to know more about the plans.
Plan Name
SmartKid New Unit-linked
Regular Premium
SmartKid New Unit-linked
Single Premium
SmartKid Regular Premium
Plan Type
Unit Linked
Unit Linked
Traditional
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