Investment Calculator: Summing Up Your Insurance Plan Benefits
Life insurance is generally considered a safety measure, helping your family keep afloat when you are no longer around. Now, what if one were to tell you that many life insurance policies in India provide more than just a means of financial protection? In simple words, such policies are life-saving rafts and your go-to investment plan.
However, it is essential to familiarise yourself with the investment side of your insurance policy. Thus, you may find investment potential within online investment calculators.
Let’s examine your policy’s investment potential and then consider how an online calculator can assist you in making informed choices.
Insurance as an Investment: Unveiling the Hidden Benefits
There were times when insurance provided only peace of mind. Most modern plans are oriented to bring you the lucrative benefits of investments along with security. Such plans put a portion of your premiums in market-linked instruments. From here, the value of investments could grow and become a substantial corpus by the time your policy matures.
Here’s how it works.
Depending on the plan, a portion of your premium goes to sustain the protective functions of insurance or invest in a plan that pays at the maturity of the policy.
The other part is taken by your insurance company and invested in the market. The realised returns could significantly add to the value of your policy at maturity. Naturally, these returns would be dependent on the chosen plan’s investment funds and the overall market results.
Why Online Investment Calculators Matter?
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Investment calculators online act as your financial crystal ball, helping you estimate the maturity value of your plan based on various factors.
By using an investment calculator, you can gain valuable insights into your insurance plan’s potential:
1. Projecting Your Future Wealth
Get a realistic idea of how much your insurance plan might be worth at maturity. This allows you to visualise your financial future with greater clarity.
2. Comparing Investment Options
Thinking about switching plans or considering new ones? Use the investment calculator in India to compare different insurance plans with similar investment options. See which one offers potentially better returns based on your risk profile.
3. Goal-Oriented Planning
Do you have a clear financial objective for your child’s future education or retirement years? The investment calculator in India can assist in determining how much needs to be contributed consistently to accomplish aspirations. This is done by capitalising on investment opportunities within an insurance proposal.
Popular Insurance Plans in India: A Playground for Investment Calculators
Now that you are aware of the significance of plan comparison let’s discuss some insurance plans with an investment component available in India.
1. Unit Linked Insurance Plans (ULIPs)
The unique selling point of ULIPs is – flexibility. It means you can choose a fund in which you wish to invest based on your risk-taking abilities. It could have a variety of mixes of equity and debt instruments, and it offers you more flexibility.
2. Endowment Plans
Endowment policies offer a guaranteed payable amount upon the policyholder’s unfortunate demise during the planned term or on the completion of the term. The investment’s performance for that plan is taken into account to add bonuses to the guaranteed amount. You may consider it a type of insurance plan that offers a safety net along with additional returns on investments.
3. Whole Life Insurance
Whole Life Plans Whole life insurance policies provide coverage for life. Similar to all other plans, a part of your total premium is invested with an increasing investment value and becomes payable in case of any policy loan or surrender.
Choosing the Right Plan: Beyond the Investment Calculator
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While online investment calculators are powerful tools, it’s important to remember that they provide estimates. Actual returns may vary depending on market fluctuations and the specific performance of the chosen investment funds within your plan.
Here’s what to consider beyond the calculator output:
1. Plan Features
Look beyond just the investment potential. Understand the plan’s coverage details, exclusions, riders offered, and claim settlement ratio.
2. Risk Tolerance
Are you comfortable with market volatility? ULIPs offer higher potential returns but come with inherent market risks. Choose a plan that aligns with your risk profile.
3. Financial Goals
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Align your insurance plan with your long-term financial goals. Are you saving for retirement or a child’s education? Choose a plan that complements your overall financial strategy.
Empower Your Decisions: Unleash the Full Potential of Your Insurance Investment
It is time; you have all the knowledge and tools to unlock your insurance plan’s investment potential. Don’t hesitate anymore to empower your financial future. Canara HSBC Life Insurance provides a user-friendly online platform for access to powerful investment calculators.
You can check their several online insurance plans and buy the one that best fits your needs. Visit Canara HSBC Life Insurance’s official website today to compare the available investment options and get the estimated returns!
