best single premium ULIP policy in India

A Comprehensive Guide to Single Premium Policy

Financial planning is a crucial part of everyone’s life to prepare for a comfortable future. There are a few ways you can do this. One of the main ways is investing in a single premium policy to build up a sizable corpus for your future. This is one of the best ways you can safely save enough money to provide you and your loved ones with a financially secure future. 

A single premium policy is a type of insurance policy that requires one to pay the decided sum at once in a single premium.

The returns through this policy are much better than other policies through market investments, ranging from 1.1 times the amount to 10 times. A single premium policy also provides life cover for you and your family. This, however, is the least of the benefits of this one premium policy. Here’s everything you need to know about the same:

1. Single Premium:

One benefit is the single premium itself. Many people find that beneficial. This is because, for insurance policies, you are paying premiums month after month. This can get quite tedious. With this one premium policy, you pay your amount in one premium, and you never have to worry about regular premium payments again.

2. Financial Security:

As a single premium policy provides life cover, the policy will take utmost care of your family in your absence. They just have to file a simple claim for the lump sum to be paid out to them.

3. Tax Benefits:

Single premium policies come with a lot of tax benefits. The policy premium is eligible for deduction of up to Rs. 1.5 lakh under Section 80C. Also, the death benefits paid by the same are tax-exempt under Section 10 (10D), making sure your family will not have to stress over taxes in your absence.

You can also read – How to invest for long-term and create wealth in 10-15 years

4. Multiple Fund Options and Switches:

You have complete control over where you invest your money in this one premium policy. One can choose from many fund options, such as equity, debt, and balance for your savings. You can also switch funds multiple times to always stay in the area that benefits you most.

5. 100% Investment:

You get the total benefits of this policy as 100% of your money is safely invested in any funds of your choice. 10x times, this premium money will be tremendously beneficial to provide your family with financial security in case of the death of the sole bread earner.

Keeping these points in mind, it is all you need to know about a single premium policy to understand its worth. Investing in one is a clever decision to build up a hefty amount for a comfortable and stress-free future for your family. 

Look at ICICI’s Pru1 Wealth single premium insurance policy and all the benefits provided by the same. ICICI is one of the most trusted companies in India, with a high claim settlement ratio. This means when you choose ICICI, your money will be in safe hands.

Why voting is important for Franklin Templeton Investors

Franklin Templeton evoting on 26th December 2020 – Why voting is important for Investors

Imagine having money but not being able to withdraw it for emergencies or daily essentials.

That’s exactly what investors of Franklin Templeton have gone through in 2020. Not just them, the management too has been in distress and are looking for a solution to solve this crisis.

Here’s what transpired in April 2020:

Franklin Templeton Mutual Fund publicly announced that they wish to wind up 6 credit-focused debt schemes. This was not taken lightly and the issue reached court doors.

Due to the matter reaching court along with lockdown, the winding-up got delayed. But now investors get a chance to vote and decide the fate of those schemes.

Initial Voting Date – 26th-28th December (1st round)

Alloted Voting Time – 9 am (26th Dec) to 6 pm (28th Dec)

First Voting results – Undecided

Voting enrollment – Visit and cast your vote

First round Voting counting – In January 2021

Why voting is important?

Remote e voting is of the essence as the management of Franklin Templeton mutual fund can understand what the investors want. Here are the 6 schemes in question:

1. Franklin India Ultra Short Bond Fund

2. Franklin India Short Term Income Plan

3. Franklin India Credit Risk Fund

4. Franklin India Low Duration Fund

5. Franklin India Dynamic Accrual Fund

6. Franklin India Income Opportunities Fund

From April 2020 to November 2020 these 6 schemes under winding up have received over 11,576 crores from coupons, maturities, and pre-payments. The schemes have been faring well and hence investors are looking to redeem them immediately.

There are 2 scenarios post voting:

YES – If the investors vote for “YES” then as per Regulation 41, they allow the management of Franklin Templeton to decide on the redemption of funds. The trustees can do it themselves or authorize an independent consultant to plan and sell. There will be no need to make a distress sale immediately.

NO – If the investors vote for “NO” then as per rules, the funds will be reopened for investors to redeem or to make new purchases. As many investors want to withdraw their funds, there will be distress selling and the scheme will incur high losses.

Meeting on 29th – Investors can ask Trustees about this decision for the first time since April 2020. Voting will also be allowed in this meeting. Also, the trustees will ask the investors if they want to authorize the trustees to go ahead with the winding-up themselves or want to allow an independent consultant Deloitte to do the deed.

When will investors get their money back?

Please understand that you won’t get your money back in one shot. The redemption of your money will be made in timely installments. Only cash positive schemes (in profit) will be allowed to redeem.

The next round of hearings at the Supreme Court will resume in the 3rd week of January 2021. The results of evoting will be sent in a sealed cover to the court. A decision will be made accordingly.

You can also read – How to create wealth in India within 15 years

After this, the second round of voting will take place to give the investor’s approval for the authorized person to make the selling/redemption.

I believe, voting “YES” will allow you as investors to get the best out of your schemes. If they are sold via a distress sale, then it’s possible you might have to settle with lower or no profits. So vote accordingly.

How to create wealth in India

How to create wealth in India within 15 years

Imagine this – You and your friend are celebrating 30 years of friendship. Both of you are retired, children working abroad, and you’re living your retirement days.

You are disappointed today as your child hasn’t sent you money for this month but your friend is happy. You get shocked to know that he hasn’t asked for money from his child.

Do you know why he doesn’t need to do that?

It’s because your friend started creating wealth at an early age and hence is in a position today where he is enjoying his retirement.

This is the story of many parents who spent everything to educate kids, get them settled, but now have no savings. Hence every month they have to ask their children for money. No parent likes that.

Hence I came up with a solution where you’ll understand “How to create wealth in India within 15 years”.

But before that let’s understand what the meaning of wealth is?

Wealth in simple words is a lot of money, property, and other assets that a person owns. Yes, the total value of all assets that you own (property, savings, and investments) minus all debts will tell you how much wealth you have.

You can also read – How to invest for Long Term and accumulate wealth

Why is wealth creation important?

Wealth creation is a long process and the more time you give, the better it is for you. Investing for 3 years can give you a decent amount but investing for 10-20 years will amplify your savings to a point that you will be self-sufficient.

Also, with each year, expenses are increasing at a faster pace than income earned. If you don’t have an investment plan for your life after retirement, then it will get difficult. Also, the cost of raising children in a country like India is increasing as education expenses have taken a steady hike.

Hence, wealth creation not only helps you be ready for life after retirement but also allows you to retire early.

How to create wealth from nothing?

Yes, you’ve read it right. You can start with as little as 100 rupees too. Here are some investments where you can start your wealth creation plan.

1) SIP’s in mutual funds that will let you grow your income at a risk free pace.

2) Stock market equity funds that are riskier but can provide higher returns.

3) NPS – National pension scheme that allows you to invest until your retirement age of 60 and then get a lump sum amount with interest.

4) PPF – Public provident fund which is risk-free, gives higher interest than fixed deposits and can be kept up to 15 years.

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There are many more avenues of investments like cryptocurrency, property investments, Debt funds, and many more. You can try them out too.

Overall, I added investments that have time and again delivered the best of results and returns. So you can check any of these options and invest accordingly.

Through this you will finally understand “How to create wealth in India within 15 years.