Categories: Business

7 key advantages of including high death benefit plans in your estate planning

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.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Published: 02 Jun 2024, 01:45 PM IST

News Today

Recent Posts

Kareena Kapoor’s Next Untitled Film With Meghna Gulzar Gets Prithviraj Sukumaran On Board

Kareena Kapoor is working with Raazi director Meghna Gulzar for her next film. The project,…

2 weeks ago

Purdue basketball freshman Daniel Jacobsen injured vs Northern Kentucky

2024-11-09 15:00:03 WEST LAFAYETTE -- Daniel Jacobsen's second game in Purdue basketball's starting lineup lasted…

2 weeks ago

Rashida Jones honors dad Quincy Jones with heartfelt tribute: ‘He was love’

2024-11-09 14:50:03 Rashida Jones is remembering her late father, famed music producer Quincy Jones, in…

2 weeks ago

Nosferatu Screening at Apollo Theatre Shows Student Interest in Experimental Cinema – The Oberlin Review

2024-11-09 14:40:03 A silent German expressionist film about vampires accompanied by Radiohead’s music — what…

2 weeks ago

What Are Adaptogens? Find Out How These 3 Herbs May Help You Tackle Stress Head-On

Let's face it - life can be downright stressful! With everything moving at breakneck speed,…

2 weeks ago

The new Mac Mini takes a small step towards upgradeable storage

Apple’s redesigned Mac Mini M4 has ditched the previous M2 machine’s SSD that was soldered…

2 weeks ago