Financial Planning
2024-05-14 4 Min read
0
We could answer it right away, but let’s break down a few concepts for you without appending too much to the ‘too-many-times-asked’ question again Let’s understand what we mean by stable here.
A stable financial instrument is a reliable investment that doesn’t fluctuate much in value and consistently gives back returns over a given/chosen time.
If we had to list and explain all the stable tools available in India as per the “Gurus”, this 4-minute read will never get to see the light of tomorrow. And while there are too many, we’ll be focusing more on products that offer fixed guaranteed returns while covering your life at the same time.
See, there might also be too many products out there offering returns that are a candy to our eyes but only a handful of them will cover you in the event something unfortunate were to happen.
See, there might also be too many products out there offering returns that are a candy to our eyes but only a handful of them will cover you in the event something unfortunate were to happen.
How often do you invest?
The answer that crops up more often than not is “Oh, I do when there is a major event that I am expecting will show up in my near future”. Which is not wrong, when you look at it from the front. The moment you start covering all the facets is when you realize that you may have missed taking into account the uninvited events and risks that may stand at your doors!
That’s where life insurance products with an option to save and build wealth come into the picture. Put simply, you invest your funds into a product that may/may not promise to offer you returns at a set IRR (Internal Rate of Return) during your maturity along with decent life coverage.
And with fixed deposits losing their edge each year with depreciating rates, you can try looking at guaranteed return plans or money-back life insurance plans to let your non-negotiable dreams not hit a roadblock.
The next question you might want to ask is how long would you want your investment to be locked for? But since we are talking about stable instruments, ideally, the lock-in period will be high too, right? It’s not completely true!
SUD Life Centurion is one such plan that offers you up to 10X of your one-time investment (premium amount) and gives back returns right after 100 months depending on the plan option you choose! That’s roughly eight and a half years. Gone are the days when you have to wait for decades before your investment fructifies into something usable.
But doesn’t a short term also mean that my returns are going to be humble? – we aren’t sure but the last we checked, this product has the potential to give you returns at an IRR of up to 7.26%*, which is a bit higher than the industry average for stable products fixed in nature.
That’s where life insurance products with an option to save and build wealth come into the picture. Put simply, you invest your funds into a product that may/may not promise to offer you returns at a set IRR (Internal Rate of Return) during your maturity along with decent life coverage.
And with fixed deposits losing their edge each year with depreciating rates, you can try looking at guaranteed return plans or money-back life insurance plans to let your non-negotiable dreams not hit a roadblock.
The next question you might want to ask is how long would you want your investment to be locked for? But since we are talking about stable instruments, ideally, the lock-in period will be high too, right? It’s not completely true!
SUD Life Centurion is one such plan that offers you up to 10X of your one-time investment (premium amount) and gives back returns right after 100 months depending on the plan option you choose! That’s roughly eight and a half years. Gone are the days when you have to wait for decades before your investment fructifies into something usable.
But doesn’t a short term also mean that my returns are going to be humble? – we aren’t sure but the last we checked, this product has the potential to give you returns at an IRR of up to 7.26%*, which is a bit higher than the industry average for stable products fixed in nature.
Why should you buy SUD Life Centurion?
Here’s why –
● Having a financial safety net with guaranteed returns is always a great idea.
● Your money stays safe and sound, just like it would in a savings account, but with better returns that you can get right after 100 months.
● You don’t have to worry about the terms changing during your investment period because it’s a single premium plan.
● Buying this policy is as easy as ordering food online or popping into your favourite coffee shop.
● No need to stress about keeping up with market trends or spending hours researching.
● You get a good night’s sleep knowing your investment is secure.
Some more points we want to be transparent about when it comes to investing in products similar to SUD Life Centurion –
● Remember, there might be some taxes on the premium you invest, so it’s good to keep that in mind.
● You might also owe taxes on the interest you earn from your lump-sum payout depending on the plan option you opt for, but, it’s still a win!
● Lastly, don’t forget about inflation! While your lumpsum benefit is guaranteed, its purchasing power could change over time, so it’s something to consider and also something we are gonna discuss next.
Let’s discuss this pocket pincher no one likes – INFLATION!
In January 2024, India’s inflation rate, measured by the Consumer Price Index (CPI), dropped to 5.10% from 5.69% in December 2023. For instance, if a shirt cost ₹105 last month, it might cost around ₹100 now, as per the latest data from the Ministry Of Statistics and Programme Implementation.
Last year, this inflation rate ranged from a low of 4.25% in May ‘23 to an incessant high of 7.44%.
Meanwhile, the Wholesale Price Index (WPI), which tracks wholesale prices before they reach consumers like you and us, went down slightly to 0.27% in January 2024 from 0.73% in December 2023. Let’s say, you were buying ‘X’ amount of wheat for ₹20 last month, you will now have to pay roughly ₹19.95 for the same ‘X’ amount.
Now, the inflation rates have always been a bit consistent on an annual basis for the last few years if you look closely, at around a good 4-5% per annum.
When you put your cash in any stable financial instrument, it’s not exactly guarded from inflation. This is especially important to consider if you’re parking your money for an extended period – whether it’s for 3–5 years or even up to 35–40 years.
And here’s why inflation matters – over time, the purchasing power of your money is bound to die down gradually due to rising prices. The key is to put your money where it grows more than inflation eats away every year. That way, you’re not just keeping up with rising prices – you’re actually growing your wealth.
Hence, it’s imperative to look for options that beat inflation by a good margin. If inflation is around 5%, aim for investments that give you more than that, say 6% or higher.
Many people forget to consider inflation, and it can really eat into your savings over time, especially when you’re thinking about safeguarding your family while achieving your short-term goals and aspirations. What might seem like a lot of money today could lose its value down the road in a jiffy.
That’s why it’s crucial to be smart about where you put your money. Look for investments that can outpace inflation, so your wealth keeps growing in real terms. With SUD Life Centurion, we’re here to guide you toward those smart choices that will protect and grow your wealth for the future while you can achieve your dreams.
*7.26% IRR is for Plan Option 1
● Having a financial safety net with guaranteed returns is always a great idea.
● Your money stays safe and sound, just like it would in a savings account, but with better returns that you can get right after 100 months.
● You don’t have to worry about the terms changing during your investment period because it’s a single premium plan.
● Buying this policy is as easy as ordering food online or popping into your favourite coffee shop.
● No need to stress about keeping up with market trends or spending hours researching.
● You get a good night’s sleep knowing your investment is secure.
Some more points we want to be transparent about when it comes to investing in products similar to SUD Life Centurion –
● Remember, there might be some taxes on the premium you invest, so it’s good to keep that in mind.
● You might also owe taxes on the interest you earn from your lump-sum payout depending on the plan option you opt for, but, it’s still a win!
● Lastly, don’t forget about inflation! While your lumpsum benefit is guaranteed, its purchasing power could change over time, so it’s something to consider and also something we are gonna discuss next.
Let’s discuss this pocket pincher no one likes – INFLATION!
In January 2024, India’s inflation rate, measured by the Consumer Price Index (CPI), dropped to 5.10% from 5.69% in December 2023. For instance, if a shirt cost ₹105 last month, it might cost around ₹100 now, as per the latest data from the Ministry Of Statistics and Programme Implementation.
Last year, this inflation rate ranged from a low of 4.25% in May ‘23 to an incessant high of 7.44%.
Meanwhile, the Wholesale Price Index (WPI), which tracks wholesale prices before they reach consumers like you and us, went down slightly to 0.27% in January 2024 from 0.73% in December 2023. Let’s say, you were buying ‘X’ amount of wheat for ₹20 last month, you will now have to pay roughly ₹19.95 for the same ‘X’ amount.
Now, the inflation rates have always been a bit consistent on an annual basis for the last few years if you look closely, at around a good 4-5% per annum.
When you put your cash in any stable financial instrument, it’s not exactly guarded from inflation. This is especially important to consider if you’re parking your money for an extended period – whether it’s for 3–5 years or even up to 35–40 years.
And here’s why inflation matters – over time, the purchasing power of your money is bound to die down gradually due to rising prices. The key is to put your money where it grows more than inflation eats away every year. That way, you’re not just keeping up with rising prices – you’re actually growing your wealth.
Hence, it’s imperative to look for options that beat inflation by a good margin. If inflation is around 5%, aim for investments that give you more than that, say 6% or higher.
Many people forget to consider inflation, and it can really eat into your savings over time, especially when you’re thinking about safeguarding your family while achieving your short-term goals and aspirations. What might seem like a lot of money today could lose its value down the road in a jiffy.
That’s why it’s crucial to be smart about where you put your money. Look for investments that can outpace inflation, so your wealth keeps growing in real terms. With SUD Life Centurion, we’re here to guide you toward those smart choices that will protect and grow your wealth for the future while you can achieve your dreams.
*7.26% IRR is for Plan Option 1
Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Smart Healthcare” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in any way indicates the quality of the plan, its future prospects or returns
SUD Life Centurion | UIN: 142N101V01 | A Non-Linked Non-Participating Individual Savings Life Insurance plan | Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472 |
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
SUD Life Centurion | UIN: 142N101V01 | A Non-Linked Non-Participating Individual Savings Life Insurance plan | Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472 |
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
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