Life is a journey of evolving needs and aspirations. As we navigate career milestones, start families, and plan for retirement, our financial goals shift. A crucial element in securing your loved ones’ future throughout these changes is a well-crafted estate plan.
It needs to be well-balanced, i.e. it should provide not just potential for wealth accumulation but also financial security for your family. This is where high death benefit plans come into play, offering a powerful tool to integrate into your estate planning strategy.
The evolving needs of individuals and families
Financial planning is a continuous process. A young professional might prioritise saving for a down payment on a home, while a middle-aged couple may focus on their children’s education. As one nears retirement, ensuring a comfortable post-work life becomes paramount.
High death benefit plans can adapt to these changing needs. They provide a safety net in case of an unfortunate event, ensuring your family receives a substantial sum to meet their immediate and long-term financial goals.
Financial security for your heirs
An unfortunate event in the family can be emotionally devastating. The financial burden it can create adds another layer of stress in the family. A high death benefit plan acts as a financial lifeline. The proceeds can be used to cover immediate expenses or outstanding debts. More importantly, it can help the family maintain their current lifestyle without having to prematurely sell assets. The family can heal without the added burden of financial worries, thanks to the financial security high death benefit ULIP provides.
Building wealth alongside protection
High death benefit plans offer wealth accumulation features with market-linked returns, allowing you to build a corpus alongside the high death benefit. This corpus can be accessed through withdrawals or used to generate income during your retirement years. This flexibility provides a safety net while ensuring your family receives a substantial benefit in case of any uncertain event.
Wealth accumulation and legacy building
These plans empower you to fulfil long-term goals for your family. You can ensure your children receive a quality education, support them in starting their own businesses, or provide for your grandchildren’s future. The corpus builds over time, allows your family to pursue their dreams and builds upon the foundation you have laid, enabling you to leave a lasting legacy for your loved ones.
Ensuring business continuity
For business owners, a high death benefit plan can be a game-changer. High death benefit plans offer more than just immediate financial support. The pay-out monies can be useful in covering operational expenses, business expansion and maintaining financial stability of the business.
Higher life coverage
Many high death benefit plans go beyond just providing a lump sum pay-out on maturity. They provide a comprehensive financial solution that gives substantial life coverage, which is a significant multiplier to your annual premiums paid and helps build wealth over the long term to ensure that you and your family fulfil all your aspirations.
Flexibility and choice of investment
High death benefit ULIP offers the flexibility to choose between investment strategies along with multiple fund options tailored to your investment goals and risk-return preference. With rising aspirations and a need to achieve personal and professional goals, the plan will help you accumulate wealth through planned strategic investments.
Perhaps the greatest benefit of a high death benefit plan is the peace of mind it brings. Knowing that your family is financially secure, helps you to focus on living life to the fullest. You can pursue your passions, build a fulfilling career, and create lasting memories with your loved ones, all with the knowledge that their future is protected.
Murli Jalan is Chief Distribution Officer, Bharti AXA Life Insurance.
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Published: 02 Jun 2024, 01:45 PM IST
