An investing plan is a golden key towards financial planning, aimed at growing savings through disciplined investments. It is vital to select the best investment plan with high returns to give direction and make an efficient and effective tactic for achieving financial goals promptly.
While it is true that you should enjoy everything life offers, it is essential to plan for what will happen when you die. If you have dependents who rely on your income stream, you should have a life insurance policy.
However, the big question is, how do you select the right investment plan with life insurance coverage? We have your back! This blog will look at the factors that can help you with this decision.
Knowing your requirements
The initial step in selecting the best life insurance coverage is understanding your requirements. Communicating your needs with an expert is vital to make a more informed decision. At PNB MetLife, we have diverse plans available that can cater to the specific needs of the insurance holders. Various options can cater to your requirements, from the PNB MetLife Genius plan to the PNB MetLife Goal Ensuring Multiplier.
Assessment of the risk profile
It is, in fact, true that with more market fluctuation and risk of investment, an investor is prone to fumble and select one with less risk in market growth. All the big investors agree that you should invest in a high-risk profile if your aim is long-term because hefty returns only come with higher risks. On the contrary, if your aim is short-term, investment in a low-risk profile makes more sense. You can select from the high-growth fund to balanced and secured funds based on the risk.
Calculating the optimal insurance cover
Insurance coverage is just as crucial as saving plans. Many financial advisors suggest that your life insurance coverage needs to be at least ten to twelve times the annual income. However, there are other factors that you should also consider when you are thinking about your ultimate insurance coverage.
If you already have some pre-existing debts, then meeting the EMIs would be a challenging endeavour for you and your family (in your absence). Additionally, you should arrange funds for your children’s marriage and higher education. Because of inflation, your family might also encounter many challenges to maintain their lifestyle. Here are three things you need to consider when you are planning for insurance coverage:
- Your family’s yearly expenses are multiplied by the years for which income replacement can be necessary.
- The whole amount of your pre-existing debts and the cost of repaying mortgages, if any
- The amount you require to set aside for future expenses like your child’s education, wedding, etc
Withdrawal facility
Let’s consider that you have invested a certain amount in any instrument. With full-proof tactics in place, that sum grows every year and makes you feel wealthy. What if the sum you invested was all you had in cash? What will you do if you are considering purchasing a car in the next three to five years?
Do you have to apply for a personal loan or have some cash for the down payment? Finding an investment plan that provides a lock-in for five years and a partial withdrawal option is ideal.
Reviewing the policy details
The key is always in the details. You need to carefully check out the features and details of different plans before deciding.
At PNB MetLife, we have different insurance plans that can meet different needs. For instance, with the PNB MetLife Mera Jeevan Suraksha Plan, you will be guaranteed financial security in your presence and absence. This plan comes with an option of returns with a survival premium till the end of the policy term.
Wrapping Up
It is vital to do your research and think carefully before choosing life insurance coverage. You can make an informed decision by being aware of your requirements, researching the plans that are granted, and selecting the best one. The PNB MetLife has quite a few options when it comes to choosing the most appropriate investment plan with life insurance.
Also Read: Insurance Companies in India: Top 10 Guardians of the Financial Security Fortifying Future of Nation
