Retirement Planning With Life Insurance

A life insurance policy is the only one of the many insurance policies out there that can give you the comfort of life insurance as well as long-term savings. Of course, there is no alternative to saving but just really to save. That is why there is a need to be wise when it comes to our investment in financial products. It should be one that could yield long-term returns.

Everybody wants to retire rich, but with the increased risks in life expectancy, that becomes more difficult every day. That is why it is best to take heed to what money experts would always say, and that is to allocate our money wisely. That way, we get to paint the kind of retirement we want to have one day. The latest market trends and innovations, even in the financial system of our world today, there can be many ways for us to earn through investments and save more money. However, with all the means of savings, life insurance, is one that provides more long-term stability in an investor’s portfolio. Sure, mutual funds investments are subject to market risks, and other debt categories like banks fixed deposits, or Public Provident Fund (PPF), also cannot give sure returns in the long run. With long-term interest rates trending downwards, now is the time to save what you have and make your necessary investment in life insurance. Financial Advisors say that endowment plans can be the right choice for investors who don’t like taking risks. But those who are willing to take risks may want to check unit-linked insurance plans (ULIPs) and earn. The higher the risk, the higher the return, money market experts say. If you look at available investments out there, there are numerous products available, especially in the life insurance industry, best of all, since they are expert in managing their own money, they have set investment portfolios for you to choose. With good market conditions and your continuous act of saving through being faithful with your contributions, your retirement can be as colorful and refreshing as you plan it to be.

An endowment plan is an insurance policy where the insurer pays the investor a certain lump-sum amount after the maturity period or in case of death of the policyholder. This could be a vital tool for anyone who wishes to build up their retirement plans. It is an opportunity for investors to have a long term saving for their retirement. In any case, the policyholder lives it until the maturity period, and the insurer pays the maturity benefit. While should anything happen, the investor’s family still gets covered by the insurance company paying the nominee the entire death benefit.

If the investor availed of market-linked products such as ULIPs, it is one that offers the benefits of both insurance and investment. The investment part could be your savings for retirement. This product features a part of the premium going to life insurance while the other covers investments in capital markets. Experts say that with 15 to 20 years of continued investments, returns can be so strong that it could yield significant returns that could add to your retirement plans.

Of course, other than ULIPs, there are other insurance products a policyholder can check out, such as retirement plans and whole-life plans.

A retirement plan is where the investor pays premiums that contribute to the future fund. The premiums paid in the tenure of the policy, which is referred to as the accumulation phase, accumulates and earns that should be ready for the target fund when the policyholder retires. The returns for the plan holder’s contribution can be as often as a monthly return. This policy is a plan that ensures regular cash flow for the policyholder after retirement.

Based on Materials from Financial Express