In the wake of rising inflation and changing lifestyles, it’s vital for an individual to focus on one’s financial planning at an early stage of one’s life. A financial plan must be customized to meet the individual’s need at various stages of one’s life. It’s crucial to have a balanced blend of instruments to address different needs of savings, protection and wealth creation. It has been observed that people are more inclined towards the wealth creation facet of financial planning and the protection element is quite often neglected or compromised.

Life insurance is still an emerging concept and most people don’t think of it until a major life changing event forces them to consider it. While the main purpose of having a life insurance policy is to safeguard one’s family from any unforeseen situations, it could also help in accumulating and preserving wealth, and could also provide access to liquidity at the right time. Most people get confused about where and how much to invest in stocks, real estate, bonds, and many others. Life insurance is a great investment and protection tool that is comparatively simpler, more affordable and also caters to various stages of an individual’s lifecycle.

One could go for a pure protection plan or a unit linked plan which gives one the opportunity to earn high returns. ICICI Prudential Life’s Smart Life plan is one such unit-linked insurance plan which offers multiple benefits such as life cover, growth of wealth and tax savings within a single plan. It’s a plan which pays the sum assured as well as the fund value in case of any unfortunate event.

  • Maturity Benefit – On maturity of the insurance policy, the amount is payable as a lump sum or as a structured payout to the policyholder.
  • Wealth Creation – ICICI Pru Smart Life is a unit linked insurance plan or ULIP which provides dual benefits of life cover as well as investment. A part of the premium paid by the policyholder life insurance and a part of is used as an investment in the money market. It’s designed to offer financial protection as well as enable in building a corpus over a period of time in a cost-effective manner which could be used for achieving various financial goals like child’s education, marriage, buying a home or planning a comfortable post-retirement life.
  • Life Cover – ICICI Prudential Life’s Smart Life plan provides a lifetime risk cover which keeps the policyholder and his family protected in case of an unfortunate event. This ensures that his family can continue to live the life you have planned for them even in your absence.
  • Smart Benefit – This is the best benefit of the plan. The plan ensures that all your goals are taken care of no matter what. In case of an unfortunate event, all the future premiums are paid by the company on your behalf and your investment continues as per your plan. This means that the savings for your desired goal continues uninterrupted.
  • Income Tax Benefit – Under section 80C of the Income Tax Act, 1961, the premiums paid towards the policy is allowed as a deduction from individual’s taxable income and the same is allowed up to INR 1,50,000. Further, amount which is received on maturity is exempted from tax under Section 10(10D) of the Income Tax Act, 1961.

So when you are planning your financial future, opt for a plan that secures your family and ensures that your wealth grows.

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January 2021