With the year drawing to a close soon, it is time for many people to introspect on their financial goals and the progress they would have made towards achieving them. After all, it is also the time when the inclination to think about resolutions and actually live by them becomes stronger and that includes considerations about the steps you would take in the coming year for your finances.

A significant part of financial planning is centered on preparing for difficulties. No amount of crystal ball gazing can completely prepare any of us for exigencies in life. The blow of unforeseen circumstances, however, can be softened with the right level of preparation. The lack of strategies to deal with such situations can trigger immense financial distress, derail other financial goals and make the post-crisis recovery period harder. Such untoward incidents can also drastically impact the overall living standards and create a major dent in day-to-day lives.

Arming yourself with a sound life insurance plan is one of the most judicious ways to prepare yourself and your loved ones for such emergencies. Also, given that the tendency to downplay the importance of  insurance is very common and many people either become complacent thanks to the insurance provided to them by their employers or they do not prioritise it at all, gifting life insurance can be a great way to make their future secure. And while you are at it, it is important to understand how ULIPs can be a huge boon for your loved ones!

Unit Linked Insurance Plans (ULIPs) are insurance plans that provide the benefits of an insurance cover as well as a market-linked investment. ULIPs are goal-based financial solutions, linked to the capital market. Thus, allowing the flexibility to invest in equity or debt funds, depending on the investor’s risk appetite. ULIPs help with capital appreciation over a long period of time, while providing insurance cover. 

The premiums that you pay to purchase and maintain your ULIP is split into two parts. One part is used to provide you with life cover. The rest of the premium amount is invested on your behalf. Isn’t this perfect?

If you are on the lookout for a life insurance plan that HDFC Life has you ‘covered’ – the HDFC Life Click 2 Wealth is a unit-linked non participating life insurance plan that offers market linked returns. You can choose from ten funds to maximize your investment and you also have the privilege of making unlimited switches. You can choose from  three plan options – Invest Plus, the classic wealth creation option, Premium Waiver option, wherein the future premiums are paid by the Insurer in case of death of the premium payor (different from the Life Assured) & Golden Years Benefit option which provides life cover till 99 years of age. With this plan you do not have to worry about high fund management charges and enjoy special addition of 1% of premium allocated to your fund for first 5 years.

Traditional investment avenues such as savings accounts and fixed deposits can seldom provide returns that can beat galloping inflation. While equity investments help you in generating handsome returns in the long-run, the high risk-factor is a deterrent for many investors. This is why investment schemes such as ULIPs come into the picture – ULIPs are a great investment scheme with which you can reap the benefits of the equity market and also fulfill insurance needs for you and your loved ones.