After all, this is an opportune time to relook and redesign financial portfolios, looking through the lens of three critical elements - protection, savings and wealth creation.
Here's how insurance can make financial portfolio robust and ready for any unforeseen financial challenges in the future:
Protection or Life Cover strengthens a long-term financial portfolio, as it mitigates potential risks and challenges. There are enough anecdotal references which show how unforeseen health expenses or loss of income due to the death of the breadwinner make a massive dent in a family's savings.
Protection products help loved ones to retain their lifestyle and long-term financial goals, without disruption. With innovative solutions now offering cover for both customers and their spouses at affordable costs, the future aspirations of loved ones can be easily secured. Similarly, some insurers offer critical illness plans that cover major or terminal illnesses like cancer.
It is ideal to buy protection products as soon as one's professional career is started. It is a fallacy that the young do not need life insurance, when, in fact, buying insurance early helps to lock into lower premium, which, in turn, results in considerable cost-saving in the long-term. Check out Edelweiss
It is advisable to set aside at least 10 percent of financial portfolio towards savings products. These plans are an ideal way for wealth accumulation, irrespective of risk appetite.
Amid heightened market volatility and a reducing rate cycle in the country, this product category has now become a far more attractive instrument for long-term savings. These products, such as Edelweiss
Unit Linked Insurance Plans (ULIPs) have emerged as one of the leading options for wealth creation, with insurers facilitating ease of buying through digital platforms.
New-age ULIPs such as Edelweiss
In fact, ULIPs can also be effectively used for child's future or legacy or retirement planning.
As the fight against COVID-19 is continued, protection will see a marked increase in terms of customer consideration. People will be more cognisant of buying insurance, complemented by increased awareness driven by the industry. With insurance penetration in
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