Unit-linked investment plans are generally considered long term instruments. This is because they typically have a long maturity period. With Wealth Secure+ you get a unique option: 5 Pay, 5 Stay.
Premium Paying Term
With Wealth Secure+, you don’t have to pay a premium for the whole term of the plan. You can choose a premium paying term that you are comfortable with and a policy term that can be longer than the premium paying term. For example, you can get a policy for 30 years, but choose to pay the premium only for the first ten years. This allows your investments to compound for much longer than they would if you choose to pay premiums for the whole term of the policy and, therefore, has the potential to generate higher returns.
We understand that not all your financial goals are long-term in nature. For example, your child may be looking to get admission to a top-tier college in five years from now, and you have only these five years to build the corpus to fund her. For similar scenarios, Wealth Secure+ offers a great option: 5 Pay, 5 Stay.
5 Pay, 5 Stay
5 Pay, 5 Stay offers the option to invest for five years and end the policy term in five years. It also provides you with a life cover for these five years – ensuring that your family’s finances are secure in all eventualities. You can use this option to plan for any large expense – like buying a house or paying for your child’s education.
Seven fund options
Your risk appetite would vary with your overall portfolio. Further, you may have a high risk tolerance when you buy the plan but as you move towards your goal – securing your funds becomes much more important than earning a high return. This is why Wealth Secure+ offers seven different fund options allowing you to create the ideal investment mix for your requirements. As 5 Pay, 5 Stay has a short-term horizon – we recommend a higher investment in debt- and debt-oriented funds as they have lower market exposure.
Short-term insurance needs
The amount of insurance cover you need depends on your total liabilities. If for any reason, you have taken a short-term loan to meet an urgent requirement – your liabilities increase for the duration of the loan term. Ideally, your insurance cover should also expand for the same duration. One of the best ways to do this is through 5 Pay, 5 Stay option of the Wealth Secure+ plan. This way you can get a short-term cover for the excess liability. At the same time, the premium you pay for the cover gets invested in funds of your choice and earns a return for you.
With Wealth Secure+ you can also choose how the payout period and frequency of payment. The payout period can be from 1 year to 5 years and the frequency can be one among yearly, half-yearly, quarterly or monthly. Based on this, the number of outstanding installments will be calculated and the amount paid out would be that part of the fund value at the time of payment. For example, if you choose three years as payout period and half-yearly installments – you would get a total of 6 installments. If the fund value at the first installment is ₹6 lakhs – the first installment paid out would be ₹1 lakh. This calculation will be repeated at each payout.
5 Pay, 5 Stay option of Wealth Secure+ is ideal to meet all your short-term investment and insurance needs.