Invest Policy
No Result
View All Result
Saturday, March 6, 2021
  • Login
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
Subscribe
Invest Policy
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
No Result
View All Result
Invest Policy
No Result
View All Result
Home Insurance Life Insurance

Why Should You Have More Than One Life Insurance Policy?

by InvestPolicy
February 27, 2021
in Life Insurance
0
Why Should You Have More Than One Life Insurance Policy?
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Everyone in today’s world looks for convenience and an easy way out to complex matters such as tax deduction claim through life insurance plans. Abhishek Raizada, 38, was no exception. As a sales and marketing director in a multinational company, he was earning a handsome salary of over 25,000,00 LPA.

To save on tax, he bought a life insurance policy with a premium liability of Rs 1,00,000 and ever since he got hold of it, he paid the premium every year religiously. A year ago, the government raised the tax exemption limit for life insurance premium payment to Rs 1,50,000. So now he bought another life insurance policy of Rs 50,000.

Do You Think Abhishek Followed The Right Approach?

More often high-flying professionals are busy with their work and that leaves them with no time to think dedicatedly about their investments. Thanks to the exemption under Section 80C of the Income Tax Act that every corporate employee is asked to declare his/her investment in life insurance products. And everyone does take it quite seriously. After all, one can save a sizeable tax in the range of 10-30 per cent on his/her taxable income.why-should-have-more-than-one-life-insurance-inside

But there is more to it. If you act wisely, you can generate much more from your investment in life insurance plans. Traditionally, life insurance policies are known for their low but secured returns. This is due to the long-standing monopoly of public sector life insurance companies which promoted life insurance plans more as a risk coverage tool than return generating investment instruments.

Most people carry this mindset even today – that expecting returns from a life insurance policy is not right and one should just focus on the kind of security it provides to family and things like that. The primary objective of a life insurance plan indeed is to cover the risk of loss of life. At the same time, it is far from any rationale to not expect returns your investments deserve.

Professionals in the age group of 20 to 45 years should aim for superior returns and not restrict themselves to traditional low yield insurance plans. This is the age when you can generate more income and thus save more. If you invest your savings wisely, you can achieve financial freedom and secure a good life for yourself and your family.

If you are willing to invest Rs 1,50,000 lakh in life insurance every year, then you should go for a combination of various life insurance policies. You can consider 2 to 5 life insurance policies.

Advantages To Keep More Than One Life Insurance Policy?

Certainly, multiple policies have benefits and there are many. You must have heard how companies follow the diversification strategy to spread their business risks and generate better returns. Many of you must be recommending and working on such plans in your organizations. So, isn’t it a good idea to work on the same principle for your benefit?

Of course, this helps in spreading risks of low returns from low performing companies. You can buy multiple policies from multiple companies. Thus, if one life insurance company is unable to generate good returns, the other might get you something better.

Also, never stick to just one type of life insurance plan. Develop a portfolio with the Unit Linked Insurance Plans (ULIPs) and Equity Linked Savings Scheme (ELSS). In the mid to long term horizon of 3 to 10 years, these plans can bring you much better returns than conventional endowment life insurance plans.

If you research on these plans, the top-performing ULIPs and ELSS plans have pumped returns of over 20 per cent a year than 5-8 per cent of conventional plans. Further, when we compound the returns over some time, the implications are much larger and deeper.

  • Trending
  • Comments
  • Latest
MP E Uparjan

MP E Uparjan 2021 | Farmer online registration, mpeuparjan.nic.in portal

February 27, 2021
sukanya-samriddhi-yojana-vs-lic-kanyadan-policy

LIC Kanyadan Policy Vs Sukanya Samriddhi Yojana

March 2, 2021
What is the role of two employees of Wipro in wrong transfer of Rs 6554 crore to Citibank

What is the role of two employees of Wipro in wrong transfer of Rs 6554 crore to Citibank

February 26, 2021
Amazon's logo was being trolled by saying Hitler's face, the company made changes once again after seeing opposition

Amazon’s logo was being trolled as Hitler’s face, the company made changes once again after seeing protest

March 1, 2021
RailTel IPO: Premium falls in gray market, should you still invest?

Nureca’s IPO will open for subscription on February 15, should it subscribe or not? Know the opinion of experts

February 28, 2021
Pakistan's JF-17 Thunder Can't Take IAF Fighter Jet With China's Help, Report Fails

Pakistan’s JF-17 Thunder Can’t Take IAF Fighter Jet With China’s Help, Report Fails

March 6, 2021
SBI Mutual Fund IPO: The country's largest mutual fund house will bring IPO to raise Rs 7,500 crore, know details

Fino Payments Bank to bring IPO of Rs 1200 crore, support of BPCL, ICICI and Blackstone to the company, know details of IPO

March 5, 2021
Gold Prices Today: 2016 के बाद एक महीने में सबसे अधिक गिरावट के बाद सोना आज संभला, चांदी भी चमकी

Gold entry in Bear Market, experts said – 10 grams gold price may fall to 41,500, know the reason

March 5, 2021
Nifty closed below 15000, Sensex lost 400 points, know the reasons that created pressure on the market

Nifty closed below 15000, Sensex lost 400 points, know the reasons that created pressure on the market

March 5, 2021
Anurag-Taapsee Pannu faces grudge, Phantom Films accuses him of Rs 650 crore tax fraud

Anurag-Taapsee Pannu faces grudge, Phantom Films accuses him of Rs 650 crore tax fraud

March 5, 2021

Recent News

Pakistan's JF-17 Thunder Can't Take IAF Fighter Jet With China's Help, Report Fails

Pakistan’s JF-17 Thunder Can’t Take IAF Fighter Jet With China’s Help, Report Fails

March 6, 2021
SBI Mutual Fund IPO: The country's largest mutual fund house will bring IPO to raise Rs 7,500 crore, know details

Fino Payments Bank to bring IPO of Rs 1200 crore, support of BPCL, ICICI and Blackstone to the company, know details of IPO

March 5, 2021

Categories

  • Banking
  • Economy
  • Featured
  • Finance
  • General Insurance
  • Health Insurance
  • Insurance
  • Investment Plans
  • Latest News
  • LIC
  • Life Insurance
  • Market
  • Money
  • Mutual Funds
  • Property
  • Scheme
  • World

Site Navigation

  • Home
  • Advertisement
  • Contact Us
  • Privacy & Policy
  • Other Links
Invest Policy

InvestPolicy.com is one of the leading companies when it comes to loans and card marketplace. Our main motto is to help our customers in making personal finance decisions easy and convenient as per their comfort.

© 2021 Invest Policy. All Right Reserved.

No Result
View All Result
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
  • About Us
  • Contact Us

© 2021 Invest Policy. All Right Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In