When the COVID-19 pandemic started, the businesses including the insurance sector suffered. There was a lot of uncertainty and pressure. But, later the people realized the importance of life insurance in a post-pandemic world, and this helped the insurance industry witness a YoY (year-on-year) increase of 16% in the business premiums paid in the second quarter of 2020-21. People realized that the life insurance plans were more of risk cover than simply an investment or tax-saving avenue!
Life insurance, in the post-pandemic world, will now be understood as a necessity. But at the same time, life insurance will also be considered as an excellent investment avenue, especially if you have a low-risk appetite. It is also a great option if you are looking for a single instrument for both insurance and investment.
Nothing else can beat the protection and extensive life cover that a term insurance offers. However, if you are looking for guaranteed returns on maturity, then you can go for life insurance savings solutions. These plans are great investment avenues for low to mid-risk investors who need guaranteed returns on their investments, along with an assured life cover.
You may also opt for Unit Linked Insurance Plans (ULIPs) if you have slightly higher risk appetites. In these types of plans the premiums are invested in market-linked instruments. Similar to savings plans, here too, you get a life cover, but the returns are not assured. The maturity payout will be dependent on market returns. You can choose between equity, debt or hybrid funds for your ULIP investments based on your risk profile.
In case you wish to talk to an expert to understand your life insurance goals and how to achieve them, then call us at 9818510748.
You might like these too: