This is why the festive season is the right time to take a closer look at your investments!

We love Diwali for the lights, joy, and prosperity it brings along. The relevance is symbolic, too – the banishment of darkness implies literally and all aspects of life. People like to begin new on Diwali – buying new clothes, jewellery, reviving relationships with gifts and sweets even in modern times. If we take up life-changing projects, be it a new house, a new startup or even a significant investment, we wait for Diwali to do it because it is considered auspicious.

Talking of investments, it is believed that the ones made during the festive season are meant to multiply our wealth manyfold. And it is also the perfect time to give something valuable to your loved ones. And what could be a better gift than giving your family a secure and stable future where there’s a promise that every Diwali of their life will be as happy as this one, and the light will never go dim in their life.

The perfect gift: A secure future for our family
While different people choose different ways to ensure their family’s future, there’s an underlying theme to it – one that requires a substantial amount of money. Some park their earnings in a bank to earn returns (often minuscule), and others invest money in the stock market to make high returns (usually open to volatility). Other tools include government instruments like PPF, which may not stand the test of inflation over time. However, all of these investment tools focus on giving maximum returns after a fixed period of maturity. If a crisis arises by the death of the chief breadwinner, the family is left with no means to ride the financial tide that might plunge them into debts and stress.
A life insurance plan helps you win over death, not literally, but in spirit, with Diwali presenting an excellent occasion to spread the light of peace of mind into the darkness of an uncertain future. Life Insurance is that incredible life-changing beam, which has the power to reconstruct the future and make it more vivid and secure. If you buy a term insurance plan, it will offer coverage for only a set period. Suppose the insured dies or suffers permanent disability during the tenure of the policy. In that case, the beneficiaries will receive benefits to compensate for the loss of income or unpaid debts left behind. The type of plan you choose determines the payout in case of full or partial disability. However, if the insured survives the duration of the policy, it lapses, and no payouts are made.

It is more than an investment; it is a responsibility
This is why one should invest in a well-diversified plan based on your life goals, which will help you reap better returns while efficiently managing the risks affiliated with them. Unit Linked Insurance Plans or ULIPs are financial instruments that give you the best of both worlds when used intelligently. They combine the characteristics of a market-linked tool and a life insurance policy. One part of the premium goes into buying life insurance cover, and the other part is invested in another asset class, such as equity, balanced, and debt funds, which could generate multifold returns in the long term. For an average risk taker, 15-20 per cent allocation would be ideal in the equity segment.

To get a mix of both of these characteristics of financial planning, study the features of “
HDFC Life Click 2 Wealth
”, a ULIP that offers market-linked returns and provides life protection for you and your family. HDFC Life Click 2 Wealth plan comes with a host of options that offer benefits such as:

• You can choose from 10 funds and an unlimited free switching option to maximise your investment.
• You only need to pay the fund management charge towards managing your funds and the mortality charge towards your life cover.
• You enjoy a special addition of 1% of the premium allocated to your fund for the first 5 years.
• You’ll find all your future premiums will be waived off, and your fund will stay invested in case of the death of the proposer, as per the premium waiver option.
• You can also opt for systematic withdrawal from your funds if looking for post-retirement income.

All you have to do is check your eligibility and choose your premium amount, premium paying term and policy term, select your sum assured, and select your plan option.

The
HDFC Life Click 2 Wealth
plan offers 3 plan options depending on your protection and investment needs:

1. Invest Plus Option: An option that provides life cover and takes care of your Investment needs by providing accumulated Fund Value at Maturity.
2. Premium Waiver Option: An option that takes care of all your financial responsibilities in your absence. In case of your (Proposer’s) unfortunate death, all future premiums shall be waived to make sure that your fund does not stop growing. The policy continues with risk cover for the life assured, and the accumulated fund value is paid on maturity.
3. Golden Years Benefit Option: The right blend of retirement planning for you is to not only build a corpus for your golden years but also make sure you leave a legacy behind for your loved ones. This plan option offers you the solution to build your fund value while also having life cover for the whole of life (till 99 years of age). You can opt for a systematic withdrawal facility to generate recurring post-retirement income from your accumulated fund.

Here’s an example:

ET Spotlight

To know more about HDFC Life Click 2 Wealth or to calculate premium, click here.

To sum it up, this Diwali, make investments that will help you live the spirit of light over darkness, good over evil, knowledge over ignorance, and hope over despair. It is the perfect occasion to make choices that will give you peace of mind today and shine a bright light over tomorrow.