We are now aware that life is full of ambiguity. A single unforeseen event can have serious financial stability and future implications. The schedule provides an economic safety net to survive unfortunate events without the financial burden or major setbacks. Hyper-personalized schedules provide complete customization and help protect you and your family based on your specific needs.
As we grow older, we go through multiple stages of life, each stage bringing its milestones, plans, and goals. A person’s financial situation is different from others at these various stages. The scheduled term insurance plan feature offers several benefits that help meet changing needs and build a financial foundation for the future. It removes the need for a cookie-cutter approach and offers you some planning options to choose from while allowing you to make the right decisions for yourself and your loved ones.
How a term insurance plan can support the financial needs of each stage of your life:
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1. Young Adults
As a young adult with a recent stable income, you have limited liability. You will follow the milestones of your career and learn to become an independent adult. In this case, a term insurance plan that secures your future and helps alleviate any potential financial burden is the most responsible decision to invest in. At this stage, a term insurance plan will allow you to lock in a comparatively low premium for the duration of the policy. You can also choose high coverage, reap the benefits, and choose to reduce it, using the reduction option.
2. Newly married stage
Providing income protection for their surviving partner is one of the major concerns of newlyweds. Additionally, when a partner is a part of the equation, there is an increase in the number of liabilities. You can also buy a car, buy a new home, or plan future milestones. By investing in a term insurance plan with appropriate co-insurance from your spouse at this stage, you will both gain financial stability. Regular plans with extensive financial support are available for one year or up to the age of 100. Combining short-term and long-term plans can protect the future of you and your family.
3. Parent-child Relationship
A newborn in the family is an unparalleled joy. The growth and development of your child are your responsibility. Therefore, young parents must invest in financial products that secure their children’s future, especially when they are absent. A lump sum or income subsidy can cover your child’s education and other development costs. As someone with a loved one, now is the ideal time to invest in a customizable term insurance plan to take care of your family.
4. Rethinking Period
The time comes in your life when a serious incident causes you to rethink your financial strategy. The incident can take the form of serious illness, early signs of illness, loss of income, and retirement plans. At these moments, you can rely on term insurance plans that provide end-of-life illness benefits, serious illness benefits, and tools to customize and secure retirement income.
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ULIP Plan and How it works?
Regardless of the nature of your financial concerns, a term insurance plan schedule is the right solution for you and your loved ones.
The ULIP plan combines the benefits of insurance with market returns. Other types of term insurance plans also provide savings, but the return is usually moderate due to the nature of the product. ULIP plans can generally generate higher long-term returns than other term insurance plans by investing in capital markets. However, you need to keep investing in a disciplined manner over the long term.
When adopting the ULIP policy, the insurer defines a death benefit. The death benefit is the amount the insured receives if the insured’s life dies. If the insured’s life insurance is beyond the insurance period, he/she is entitled to a legitimate benefit. ULIP policy maturity benefits are the amount accumulated by investing policyholder money in a particular investment trust. These invested funds are accumulated by multiple policyholders in equity funds, debt funds, or a combination of both. Like the
Mutual Fund, the ULIP Mutual Fund is managed by a professional fund manager supported by a research team. The ULIP fund mechanism is similar to the mutual fund mechanism.
After the policyholder decides on the fund, the shares of the fund will be allocated to him according to his investment. Net asset value (NAV) is calculated based on the stock of the fund. NAV is evaluated and declared daily by insurance companies.
Since the ULIP plan is an insurance product, death benefits are guaranteed depending on the situation of the product regardless of the investment composition.
These options have enabled customers to get a customizable term insurance plan and also get add-on benefits that will cover the best plan for their requirements.
