Everyone is going to retire at some point of time. Different people approach retirement differently. Many prefer to retire early to fulfill their ambitions of a start-up or maybe just to live out a peaceful life. Yet for others who enjoy the financial security, work till they are of the retirement age. Retirement is early for some and late for others but the fact is, retirement is inevitable. Everyone also wants to maintain a steady income once they retire and avoid any and all financial stress.
There are a number of considerations that one has to take into account while planning for retirement. One of the most important of those considerations is calculating the expenses on retirement. More precisely, how much money will be enough?
With a highly volatile inflation rate and the subsequent fluctuating prices, increase in life expectancy with better medical facilities, the question of how much will suffice is becoming challenging by the day.
How much money is really necessary?
Firstly, one needs to be able to anticipate the expenses at the time of retirement that is on the last year of retirement. 20 times of that amount needs to be accumulated to enjoy the endowments of retired life.
India is the fastest growing economy in the world, having just surpassed China in the last quarter of 2014. Here comes in the advantages of a Unit Linked Insurance Plan or a ULIP. A ULIP provides the benefits of the ups in the stock market but also protects your capital. With the markets poised to only rise, a ULIP is a much better option as compared to solely capital protection products.
HDFC Life Click 2 Retire – Unit Linked Insurance Plan is an online pension plan that gives you the advantage of both vested benefits (like a traditional plan) and also gains from the upsides in the equity market. Bigger returns are always better. When you have the opportunity to earn much more, why not avail it especially when it could be done with a simple click?
Yes, that’s true! You can invest in HDFC Life Click 2 Retire with a single click. Wouldn’t it be much more convenient to sit on your computer and with a click manage to invest money and plan for your retirement? It will be, right!
HDFC Life Click 2 Retire also allows you to start as early as 18 years which, along with a lower vesting/ maturity age of 45 years will enable you to plan for an early retirement and we are just getting started.
That being said, this linked insurance product does not offer liquidity during the first five years of the contract. This means that policyholders will not be able to withdraw the money they have invested, completely or even partially till the end of the fifth year. It is important that you stay invested initially to reap the benefits later.
Also, this linked insurance product allows very flexible payment options which are: regular, limited pay and single pay.
In the event of an untimely death, the nominee assigned by the policyholder will receive the current value of the policy or 105% of the premiums paid, whichever is higher. Since it is a Unit Linked Insurance Plan (ULIP), the value of the policy, depending on the equity markets could be much higher than the actual premiums paid.
And well the best part is you get your tax benefits by investing in this policy. Subject to provisions of IT Act, 1961, such policies could bring you tax benefits under Section 80C and Section 10(10A).
So, start investing! One of the best ULIPs is just a click away. What are you waiting for?
Disclaimer- This publication is for general circulation only. It does not form part of any offer or recommendation, or have any regard to the investment objectives, financial situation or needs of any specific person. Before committing to an investment, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and read the relevant product offer documents, including the risk disclosures. If you do not wish to seek financial advice, please consider carefully whether the product is suitable for you.