The last two years have been a tough rollercoaster for most of us. Jobs and lives were lost, unexpected pay cuts and work-from-home diktats threw life out of gear. Plans were put on hold indefinitely and life itself took on an uncertain quality. Often, we lived in the moment, happy to have made it through another day unscathed.
The worst is now behind us and it’s time to start enjoying life and planning for the years ahead. It’s also time to take stock of our finances – the funds and savings we dug into to cover unforeseen medical expenses. Apart from that, our investment portfolios need reorganising to align with our changed priorities. Here’s where HDFC Life Click2Wealth comes in. This ULIP offering ensures that you save tax, have an insurance plan in place, and grow your financial portfolio. Here’s why this three-in-one investment option is worth your time.
Insure and be sure
You may have been salting away a chunk of your income into savings over the years. But as many of us have realised, savings can get wiped away in the blink of an eye if they haven’t been invested prudently. What we need today is a sensible life insurance plan that can take care of life’s uncertainties. If you are the sole breadwinner in the family, you need to be doubly sure that the dreams of those dependent on you do not get stalled in the event of your untimely demise or if the income dries up suddenly. A good insurance plan can also help you reap rich dividends later on in life if you go for one that gives you maturity benefits at the end of the term or the option of a retirement income.
ULIPs show the way
For the present, however, it is important to think of ways in which you can squirrel away some more of your hard-earned money into investments by the simple expedient of saving tax under the provisions of Section 80C of the Income Tax Act, 1961. Before the financial year ends on March 31, 2022, you can pick a good Unit Linked Insurance Product (ULIP). It is an investment plus insurance product where one part of the money is used for ensuring the investor while the other part is invested in the products of your choice. You can choose to invest in equity, debt, hybrid, or money market funds through ULIPs. A contribution of up to ₹1,50,000 can be claimed as tax deduction under Section 80C. There’s a lock-in period of five years for ULIPs, but this helps you stay engaged for the long term and plan for life goals in a systematic manner. In addition, investors have an option where they can choose to switch from equity to debt or hybrid as per their financial objective during the lifecycle of the investment.
Make stocks a safe bet
Why are we stressing on ULIPs as an investment of choice, you may ask when there are other options to save tax under Section 80C? The answer to this is timing. In India, the stock market has been paying handsome dividends to those who have prudently stayed invested over the years. While it may not always be a good idea to play the market hard and fast, it does make sense to invest in the capital market where returns have been good through the pandemic and promise even better in the coming years. Investing in stocks through ULIPs offers both protection in the form of an insurance policy and the power of investment, setting ULIPs apart from other traditional investment policies. While in the initial years, ULIP premiums are used for meeting insurance needs and policy expenses, the premiums later get divided between providing you with a life cover and buying fund units for investment. All this makes investing in the capital market through ULIPs a better idea than opting for conventional instruments that are losing lustre.
Choose your plan wisely
HDFC Life’s Click2Wealth offers the advantages of all these - insurance cover, wealth creation, and tax savings? It is a unique ULIP offering covered under Section 80C. It comes with three plan options – Invest Plus, the classic wealth creation option, Premium Waiver option, wherein the future Premium(s) are paid by the Insurer in case of death of the Premium Payor (different from the Life Assured), and a Golden Years Benefit option which provides life cover until 99 years of age. Additional features like the return of mortality charges on maturity and customisable riders like accidental disability rider and critical illness rider make sure you are covered from every angle, even as your funds fetch you attractive returns over the years.
Play your cards right. Before the financial year ends, assure your life, invest for better returns, and save on tax too. This March, opt for HDFC Life’s Click2Wealth and achieve three goals with one stroke.
