Are you on the lookout for a reliable insurance policy that offers you the best value for your money? Well, if you are, you need to consider a pure term plan+mutual fund combo for your needs. A pure term plan+mutual fund (MF) combo is a great option for those who want a reliable source of income in their retirement years.
A pure term plan is a form of life insurance that provides financial protection to your family in the event of your demise. It offers coverage for a specific period of time, with a fixed sum assured. This sum assured is payable to your family in the event of your death during the policy period. The premium is paid regularly throughout the policy period and, at the end of the policy, the sum assured is paid to your family.
A mutual fund (MF) is an investment vehicle that pools the money of several investors and invests it in stocks, bonds, and other securities to generate returns. Mutual funds offer diversified portfolios and have the potential to generate higher returns than traditional fixed-income investments such as bonds and savings deposits.
Now, let us look at why a pure term plan + MF combo works better than traditional insurance policies.
•The first advantage of opting for a pure term plan + MF combo is the safety of funds. Traditional insurance policies provide a fixed sum assured, however, the policyholder faces the risk of the funds being lost if the policy lapses or the premiums are not paid. Whereas, in a pure term plan + MF, the policyholder’s funds are safe as long as the policy is in-force.
•The second advantage of a term plan + MF combo is flexibility. Traditional insurance policies provide coverage for a fixed period of time. However, with a term plan + MF, you have the flexibility to choose the term of the policy and the investment option according to your requirements. You also have the option to switch funds if you want to change your investment strategy.
•The third advantage of a term plan + MF combo is the potential for higher returns. The returns from a pure term plan + MF combo depend on the mutual fund’s performance. This means that the returns can be higher than those from a traditional insurance policy.
Finally, a term plan + MF combo offers greater tax benefits. Traditional insurance policies are generally taxed as per the Indian Income Tax Act. However, with a term plan + MF combo, the policyholder is eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs 1.5 lakhs.
Overall, a term plan + MF combo works better than traditional insurance policies in terms of safety, flexibility, returns, and tax benefits. So, if you are looking for a reliable insurance policy that offers you the best value for your money, a pure term plan + MF combo is the right choice for you.
A pure term plan can be customized to meet the needs of almost any individual. For example, it can be used to provide coverage for a specific event (e.g. death) or a specific type of person (e.g. a business owner). This means that the coverage can be tailored to fit the needs of the policyholder, making it far more likely to meet their needs.
To sum it up, a pure term plan + mutual fund is the better option compared to traditional insurance policies. It provides you with more flexibility, more options for investing, a higher death benefit, and lower premiums. With all these benefits, it’s no wonder that a pure term plan + mutual fund is becoming increasingly popular among those looking to secure their future.
In conclusion, a pure term plan offers greater cost-effectiveness, more flexibility, and more customized coverage than traditional insurance policies. All of these benefits make it a wise choice for anyone looking for protection for their family.