Despite its various features and advantages, Unit linked insurance plan is one of the most often misunderstood financial tools. Because of the built-in investing component, ULIPs are often seen as hazardous vehicles.
ULPs let investors participate in a wide range of equities and debt securities, with rewards dependent on market performance. Thus, market volatility plays a significant influence in deciding the aggregate returns from these particular funds. However, the entire risk associated with Unit linked insurance plans is not dependent on a specific kind of fund choice. Instead, it is the sum of the risk profiles of the fund alternatives in which you choose to invest.
With a Unit linked insurance plan, you have discretion over which fund possibilities are included in your investing portfolio. For example, suppose you opt to maximise your profits by investing only in stocks. In that case, your investment risk rises as well since equity funds are the most vulnerable to market-related hazards. A ULIP portfolio consists only of debt funds; on the other hand, it would have significantly less risk exposure but far lower total returns when compared to equity investments.
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However, depending on your risk tolerance and financial objectives, you may choose to invest in a combination of equity and debt fund alternatives (i.e. a balanced fund portfolio). This allows you to minimise your total risk exposure under the ULIP while still accumulating maximum rewards. Don’t forget about the ULIP plan’s built-in life insurance coverage, which considerably minimises your risk of financial difficulties and other unforeseen events.
The unit linked insurance plan is widely regarded as one of the greatest saving/investment products for maximising returns on investments. You have entire flexibility to invest your money in the funds of your choosing, based on your risk tolerance. In other words, ULIP investments are less vulnerable to market changes.
What is Invest 4G Plan by Canara HSBCLife Insurance?
The policyholder will bear the investment risk in the investment portfolio under this policy.
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You are continuously striving for the finest in your life. Your signature is never settling for second best. As a loyal client, you deserve the greatest financial security and financial planning for your loved ones. This plan offers life insurance coverage to safeguard your family in the event of your untimely death, as well as the best value for your hard-earned cash.
No matter what stage of life you are in; a youngster just starting to save, a family man planning for a secure future for his children, planning for your own golden years, or even creating a legacy after you while safeguarding your wealth so that your personal financial goals are met even if you are not around. We’ve got a solution for you.
Invest 4G Plan is a Unit Linked Individual Life Insurance Savings Plan that you may tailor to your own objectives and changing needs. This plan provides you total control over your savings and insurance requirements with an unrivalled mix of Portfolio Management Options and flexibilities. This item is not a participating item.
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Why Should You Go For it?
Invest 4G Plan is a Unit Linked Individual Life Insurance Savings Plan that you may tailor to your own objectives and changing needs. This plan allows you total control over your money thanks to an unrivalled mix of Portfolio Management Options and flexibilities. It also includes Life Insurance to cover your family in the event of your untimely death.
If you want to calculate the cover amount, you must try our ULIP calculator!
Why Invest 4G Plan is Worth Investing?
Canara HSBC Life Insurance Invest 4G is a unit-linked life insurance policy that may help you put your financial difficulties behind you. The policy provides both protection and savings, enabling you to save for your future goals while simultaneously giving life insurance cover.
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1. Life Option and Century Option
The greater of the Sum Assured (minus any applicable Partial Withdrawal/ Systematic Withdrawal/ Milestone Withdrawal) or Fund Value will be paid as of the date of death claim notification and the policy will be terminated.
2. Care Option
As the Life Assured dies, a lump amount is paid immediately, and the remaining future premiums are reimbursed by the Company when they become due, with the Fund Value paid at maturity.
3. Maturity Benefits
You will get the Fund Value at maturity, depending on the current NAVs. Using the Settlement Option, you may also take the Fund Value in periodic payments at maturity.
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4. Fund Options
This Plan allows you to manage and control your money in your own manner. There are 8 Unit Linked Funds to select from. You may assign your Premiums to any, all, or a mix of Unit Linked Funds based on your risk tolerance.
Don’t forget to check out the ULIP calculator for the most accurate calculations!
Alternatively, to manage and develop money, one may choose one of the four Portfolio Management Options listed below.
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1. Systematic Transfer Option (STO)
Suppose you wish to participate in an equity-oriented fund but are concerned about market volatility and the danger of a lump sum investment. In that case, you may choose an STO, which allows you to join the stock market in a methodical way.
Your whole premium will be initially assigned to the Liquid Fund and then systematically moved monthly into any of the Unit Linked Funds – India Multi-Cap Equity Fund, Equity II Fund, or Emerging Leaders Equity Fund – that you choose.
2. Return Protector Option (RPO)
This option allows you to profit from the stock market while shielding your profits from potential equity market volatility. Starting with the second policy year, your profits from an equity fund based on your set ‘Target Appreciation’ are automatically moved to a lower risk Debt Fund through RPO. This protects your profits from additional market volatility.
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3. Auto Funds Rebalancing (AFR)
You may use Auto Funds Rebalancing to keep your assets allocated in a specified proportion across multiple Unit Linked Funds regardless of market changes. Once enabled, it automatically rebalances your assets in various Unit Linked Funds to the allocation proportions you choose every three months.
4. Safety Switch Option (SSO)
As your policy approaches maturity, you may wish to avoid market fluctuations and protect your cash. The Safety Switch Option allows you to gradually transfer your assets to a reasonably low-risk Liquid Fund at the start of each of the previous four policy years.
Wrapping It Up
The Unit linked insurance plan allows you to securely balance your fund with equity and debt components and swap as the market moves, giving them a flexible approach to investment planning.
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At the same time, the ULIP plan provides a financial safety net in the form of life insurance coverage, which protects your investments and life objectives.
Save your valuable time by using the ULIP calculator before buying any ULIP plan!
Heana Sharma: A rising talent, Heana boasts 2 years of versatile content writing experience across multiple niches. Her adaptable skills result in engaging and informative content that resonates with a wide spectrum of readers.
According to a 2023 report by the Employee Benefit Research Institute (EBRI), only 52% of U.S. adults reported having life insurance. While we may not like to think about it, preparing for the future is crucial. Life insurance offers peace of mind, knowing your loved ones (or your business) will be financially secure in your absence.
This post will guide you through everything you need to know about life insurance planning, from understanding different types of policies to using them for both personal and business needs.
Read along so that you can plan a brighter tomorrow.
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Understanding Life Insurance
Life insurance is a contract between an individual (the insured) and an insurance company (the insurer). The insured pays regular premiums to the insurer, typically on a monthly or annual basis.
In return, the insurer promises to provide a lump-sum payment, known as the death benefit, to the designated beneficiaries (whether an individual or a business owner) named in the policy upon the insured’s death.
How does it work?
Understanding how life insurance works is crucial for both individuals and businesses. Below, we’ll outline the key steps involved in a life insurance policy, from purchasing to the payout process, ensuring financial protection for you and your loved ones, or continuity for your business.
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Policy Purchase: You buy a policy from an insurance company, stating how much coverage you want and who will receive the benefit when you pass away.
Premium Payments: You pay premiums regularly to the insurance company to keep the policy active. This can be done monthly, yearly, or as a lump sum.
Coverage Period: As long as you keep paying premiums, the policy stays active. It can cover a set period of time (term life insurance) or your entire life (permanent life insurance).
Death Benefit Payout: When you pass away, your beneficiaries file a claim with the insurer, providing proof of death.
Claims Processing: The insurer reviews the claim and, if approved, pays out the death benefit to your beneficiaries.
Beneficiary Use: Your beneficiaries can use the money to cover expenses like funeral costs, debts, or daily living expenses, providing them with financial stability during a tough time.
Types of Life Insurance Policies
Here’s a simple overview of various life insurance options, suitable for both individuals and businesses.
Individual Life Insurance
Term Life Insurance: Covers you for a certain time, like 10 or 20 years. Good for things like paying off a mortgage or supporting your family if something happens to you.
Whole Life Insurance: It covers you for your whole life. It has a savings part that grows over time, but it costs more than term life insurance.
Universal Life Insurance: Similar to whole life insurance but more flexible. You can change how much you pay and how much goes into savings.
Variable Universal Life Insurance: This lets you invest part of your premiums in the stock market, so it can grow more, but it’s riskier.
Guaranteed Universal Life Insurance: Gives you fixed growth on your savings, so you know what you’ll get back.
Final Expense Insurance: Covers things like funeral costs so your family doesn’t have to pay.
Business Life Insurance
Buy-Sell Agreements: Help businesses if an owner dies. It pays for the owner’s share so the business can keep running.
Group Term Life Insurance: Businesses can offer life insurance to their employees as part of their benefits package.
Executive Bonus Programs: Businesses can use this to give their top employees extra money and life insurance.
Estate Planning: Businesses can use life insurance to plan for passing the business on to someone else when the owner dies.
Benefits of Life Insurance
More than 100 million Americans are uninsured or underinsured when it comes to life insurance, If they understand the benefits as given below, they can understand how important it is to have life insurance, whether in businesses or for individuals.
For Individuals
Life insurance is vital for individuals to secure their finances and provide for their families in case of unexpected events. Let’s look at how individuals benefit from life insurance.
Financial Protection: Life insurance provides a financial safety net for loved ones in the event of the policyholder’s death, ensuring they are financially secure.
Debt Coverage: It helps pay off outstanding debts such as mortgages, loans, and credit cards, relieving the burden on family members.
Income Replacement: Life insurance replaces lost income, helping beneficiaries maintain their standard of living and meet ongoing financial obligations.
Estate Planning: It facilitates the transfer of wealth to heirs, ensuring smooth estate settlement and minimizing estate taxes.
For Businesses
Businesses need life insurance to stay financially stable and keep operations running smoothly during unforeseen circumstances. Let’s see how life insurance helps businesses.
Key Person Coverage: Life insurance protects businesses against financial losses resulting from the death of key employees or partners, covering expenses like recruitment and training.
Business Continuity: It provides funds to cover operating expenses, debts, and salaries, ensuring business continuity during the transition period after the death of an owner or key employee.
Buy-Sell Agreements: Life insurance funds buy-sell agreements, allowing surviving partners to buy out the deceased partner’s share of the business, ensuring smooth ownership transitions.
Loan Protection: Life insurance can be used to secure business loans, providing lenders with assurance that debts will be repaid in the event of the policyholder’s death.
Employee Benefits: Offering life insurance as an employee benefit helps attract and retain top talent, enhancing employee satisfaction and loyalty.
Using Life Insurance
Life insurance is a valuable tool for both businesses and individuals, helping to meet financial needs and offer peace of mind. Let’s see how it works in different situations.
Life Insurance in Business
Businesses use life insurance to keep running smoothly, protect against financial challenges, and attract talented employees. Here’s how it helps businesses.
Business Continuity Planning: Life insurance can ensure that if something happens to a business owner, like their passing away, the business can keep running smoothly. It provides money to cover expenses and debts so the business can continue operating.
Funding Buy-Sell Agreements: When business partners have an agreement that says what happens if one of them dies, life insurance can provide the money needed to buy out the deceased partner’s share of the business. This ensures that the business can carry on without financial strain.
Estate Tax Planning: Life insurance can be used to help pay for taxes that may be owed when someone passes away and leaves behind a business or other assets. It ensures that the business doesn’t have to be sold off to cover these taxes, preserving it for the next generation.
Corporate Tax Planning Services: Life insurance can offer tax benefits for businesses. Money invested in certain types of life insurance policies can grow without being taxed, and the benefits paid out to beneficiaries are often tax-free. Corporate tax planning services help businesses take full advantage of these benefits.
Attracting and Retaining Talent: Offering life insurance as part of employee benefits can make a business more attractive to employees. It shows that the company cares about their well-being and wants to help protect their families financially. This can help the business attract and keep talented employees.
Life Insurance in Individual Planning
Individuals use life insurance to protect their families, prepare for retirement, and leave a meaningful legacy. Here’s how it helps individuals.
Financial Protection: Life insurance provides financial security for loved ones by covering living expenses and debts in the event of the policyholder’s death.
Income Replacement: Life insurance replaces lost income for primary breadwinners, ensuring that their family’s standard of living is maintained.
Legacy Planning: Life insurance allows individuals to leave behind a meaningful legacy for their beneficiaries, whether it’s providing an inheritance or supporting charitable causes.
Supplemental Retirement Income: Certain life insurance policies offer cash value accumulation, providing additional income during retirement to enhance financial security.
Health Benefits: Some policies offer benefits for terminal illnesses, providing financial support for medical expenses and treatments during challenging times.
Estate Planning: Life insurance helps cover estate taxes and other expenses, ensuring a smooth transfer of wealth to beneficiaries and preserving assets for future generations.
Tax Efficiency: Life insurance offers tax benefits, with the death benefit generally being income tax-free for beneficiaries, providing tax-efficient wealth transfer.
Conclusion
Life insurance planning is essential, but it can be complex. Knowing what you need can give you and your family comfort. Whether you’re just starting to look into life insurance or thinking about changing your current plan, it’s smart to stay updated and ask for advice.
Remember, a staggering 30% of Americans realize the importance of life insurance but haven’t yet taken action. Don’t be part of that statistic; explore your options today for a secure tomorrow with us.
The Forex trading market is a dynamic environment where efficiency and effectiveness are key to success. AlfaXM emerges as a prominent platform, offering a combination of easy-to-use interfaces with advanced technological capabilities, designed to enhance trading experiences for investors of all levels.
Gateway to Forex Expertise
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AlfaXM is dedicated to the continuous enhancement of its platform, adding features that improve the user experience and help protect investments. This includes sophisticated risk management tools and customized alerts for market fluctuations, enabling traders to approach the Forex market with confidence and precision.
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Nowadays, the proliferation of fake videos on stock market operations is increasing and getting viral. In the wake of this, the NSE and the National Stock Exchange have issued certain guidelines on these, reported Livemint.
NSE has extended a stern caution to those investors who make fake videos purportedly recommending stocks by showcasing Shri Ashishkumar Chauhan.
Notably, Shri Ashishkumar Chauhan is the Managing Director and Chief Executive Officer of NSE. NSE said, “NSE in a few investment and advisory audio and video clips falsely created using technology.
The National Stock Exchange (@NSEIndia) cautioned investors on #fake audio and #videos of their MD- CEO @ashishchauhan recommending stocks — which are circulating on social media.
Such videos seem to have been created using sophisticated technologies to imitate the voice and facial expressions of Shri Ashishkumar Chauhan, MD & CEO of NSE.”
As per TimesNow, the national stock exchange has also requested investors to verify information, exercise vigilance and only trust what appears on official NSE channels.
Information can also be verified from www.nseindia.com, the official website. Other official social media handles include, “Twitter: @NSEIndia, Facebook: @NSE India, Instagram: @nseindia, LinkedIn: @NSE India, and YouTube: NSE India.”
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Ashishkumar Chauhan, the MD and CEO wrote on X, “Caution – clarification on fake audio/ videos of NSE MD and CEO recommending specific stocks – circulating on social media for last few days.”
This statement is the follow-up of the surfacing of the manipulated video and audio clips regarding stock recommendations.
These fake videos make use of advanced and sophisticated technology which mimic the MD’s voice and facial expressions. Thus, this creates an alarming and misleading situation for unsuspecting investors.
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NSE Employees Cannot Recommend Stocks
Thus, investors are advised not to fall for such fraudulent content and take investment decisions. NSE also clarified that its employees are “not authorized” to recommend or endorse any specific stocks.
NSE has also asked online platforms to take back potential deceptive videos. Meanwhile, the public and investors are requested to verify the authenticity of information and exercise caution before taking any wrong step which may cause financial loss and personal harm.
