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.