Investment Insurance
What Is Investment Insurance?
Investment insurance is a financial product that combines the benefits of both insurance and investment. A ULIP can be considered an investment insurance plan. It secures your loved ones financially in case of an unfortunate event and at the same time, helps you grow your money.
Insurance investment plans can be ideal for all ages, throughout your earning years. An investment insurance plan is a single solution to help you achieve your long-term financial goals, such as purchasing a house, starting a business, a financially independent retirement, and more. It enables you to live stress-free and protect your family's needs.
Insurance and Investment
Insurance and investment are two important components of financial planning. They offer distinct benefits and cater to your financial needs. Here is how:
Insurance provides you with a life cover that secures your loved ones financially in case of any unfortunate event. It provides your loved ones with a fixed amount of money in such a situation.
Investment helps you earn returns on your money by investing in market-linked instruments. Your money gets invested in equity and debt markets and offers you with returns. These returns can help you meet your financial goals.
Investment insurance offers the benefits of both insurance (through a life cover) and investment (market-linked returns). It offers an assured life cover amount in the case of an unfortunate event and, at the same time, helps you grow your money and generate returns for your financial goals.
Why should you consider buying Investment Insurance Plans?
Financial Protection
Insurance investment plans offer financial protection, ensuring you and your loved ones can enjoy a secure life. It safeguards your financial future and provides peace of mind by securing your loved ones, no matter what!
Dual benefit of Investment & Insurance
These plans combine the features of insurance with investment opportunities. This can keep you secure with a life cover# while simultaneously growing your wealth for future goals.
Funds for Emergencies and Leisure, both
Investment insurance plans give you a life cover that secures your loved ones in case of an unfortunate event. In addition, the returns from the plan can be used to fulfil your financial needs and goals. You can use the money to buy a house, travel, pay your child’s education fees, and more. You can also set it aside as an emergency fund to be used in case of any unplanned expenses. These funds can be withdrawn at any time after the first five years of the plan.
Systematic Withdrawals^
Some investment insurance plans offer the option to get regular payouts. You can opt for systematic withdrawals and create a regular source of income for yourself.
Tax Benefits
As these plans have a life insurance component, they qualify for tax benefits under The Income Tax Act, 1961. You can claim a deduction of up to ₹ 1.5 lakh on the premiums paid under the policy subject to conditions under Section 80C of the Income Tax Act, 1961. The payouts you receive from the plan are also tax-free subject to the conditions under Section 10(10D).
What are the Key Features of Investment Insurance Plans?
Below are some key features of an insurance investment plan:
Insurance Cover
The plan offers a large claim amount to your loved ones, ensuring their financial security in case of an unfortunate event. An insurance investment plan offers a life cover# for a fixed term.
Long-Term Wealth Creation
An insurance investment plan allows you to create wealth over time. Your money stays invested in market-linked funds, offering potentially high returns. You can align the plan as per your financial goals, including your child's education, saving for retirement, and more.
Flexibility in Premium Payments
Insurance investment plans are flexible with premium payments. They offer many options like monthly, quarterly, semi-annual and annual payments to ensure they fit into your budget.
Unlimited Fund Switches
You can make as many fund switches as you want depending on the plan you chose. This allows you to capitalise on market opportunities while aligning your investments with your risk appetite and goals. The plans offer flexibility to ensure your financial needs are met.
Enhanced Protection with Riders
Insurance investment plans offer additional riders to help you enhance your plan's financial coverage. You can add riders like accidental death, permanent disability and others to protect yourself financially. The inclusion of these riders depends on the specific plan you select.
Who Should Buy Investment Insurance Plans?
If you fit in any of these categories, you must consider buying an insurance investment plan.
Financial Security
If you are looking for both insurance and investment under the same plan, these can be an ideal fit. These plans help you provide financial security and take care of your investments.
Young Parents
If you are a young parent, you may have many financial goals like your child's higher education and their marriage. You also want to ensure the financial well-being of your child, no matter what. An insurance investment plan will be helpful to achieve these goals.
Retirement Planners
If you are planning to retire, you can effectively save with an insurance investment plan. These plans can also help you secure your loved ones and accumulate wealth effectively over time.
Investors seeking Tax* benefits
Insurance investment plans offer tax* benefits under various sections of The Income Tax Act, 1961. If you are looking to maximise your tax savings these plans could be a great option for you.
COMP/DOC/Oct/2024/2810/7496
Investment insurance plans offered by ICICI Pru Life
- ICICI Pru Signature:
This plan invests your money in market-linked instruments. You may choose to invest in high-performing equity funds, low-risk debt funds, or balanced funds, as per your risk appetite. You can also switch between the funds as many times as you want without any extra cost+. The plan offers four portfolio strategies that help you manage your money as per your requirements.
ICICI Pru Signature offers you the flexibility to choose the premiums you want to pay as per your convenience. You can choose to pay the premiums monthly, half-yearly, yearly, or all at once. The plan also gives you the flexibility to increase your investment in the plan any time during the policy term using the top-up feature.
In addition, ICICI Pru Signature offers a life cover throughout your policy term. This ensures that your loved ones are financially secured, no matter what!
The plan also offers tax* benefits as per The Income Tax Act, 1961.
This plan also helps you invest your money in market-linked instruments. You may choose to invest in high-performing equity funds, low-risk debt funds, or balanced funds, as per your risk appetite. You can also switch between the funds as many times as you want without any extra cost+. The plan offers four portfolio strategies that help you manage your money as per your requirements.
With ICICI Pru Protect N Gain, you can choose the amount of life cover you want from the plan. Your premiums are calculated basis the life cover amount that you choose. You can choose to pay the premiums monthly, half-yearly or yearly, as per your convenience. The plan also gives you the flexibility to increase your investment in the plan any time during the policy term using the top-up feature. The Systematic Withdrawal^ Plan feature allows you to withdraw a pre-determined percentage of your fund value regularly. This can help you to meet specific needs such as your child’s education or money for day-to-day expenses during retirement.
The plan also offers tax* benefits as per The Income Tax Act, 1961.
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