HDFC SL Crest – Short Term ULIP Investment Plan in India

ULIPs have been an underrated form of investments. Even if investors are aware that the funds invested in ULIPs are eligible for returns and benefits such as tax exemptions, they still steer clear of the plans. Even if the ULIP investments are subjected to capital market risks, it is still one of the best options one could opt for.

But What Exactly is ULIP?

It is basically a life insurance product which provides complete risk cover to the insurance holder in addition to the different investment options which can be spread across stocks, shares, bonds or even mutual funds. As a complete plan, ULIP is available for customization depending on the risk appetite and financial goals.

Should I Opt for a ULIP plan?

If you have an appetite for risk, ULIPs are perfect for you. The entire investment risk is borne by the investor when it comes to ULIPs. If you are adventurous in terms of investments and the market fluctuations, then experts recommend that you take in to account the margin of risk you are willing to take.

·   It is beneficial when you have long term financial goals such retirement planning, healthcare funds, children’s education, and future fund accumulation for other major occasions and needs

·     You can easily track your portfolio even without a fund manager. Flexible plans let you switch from high risk plans to a low risk ones easily without much ado.

·        If you are a long term investor, ULIPs are the perfect investment plan.

·      Get the privilege to choose from low risk, mid risk and high risk funds during signing up for the policy.

·      There is no age limit as such for investing. Therefore, a ULIP is available for every age group that has a financial liability or long term needs in general.

 

 Why HDFC SL Crest ULIP?

One of the classic ULIPs from the house of HDFC, HDFC SL Crest offers investment options, financial protection all in one go. 

·  Features:

o     You can choose the total sum assured. It could be either 10 times or 40 times of the annual premium paid. Therefore, you get to regulate the level of protection in general.

o   Annual premiums are a norm with every ULIP plan. However, you can pay the regular premium amount starting at 50,000 per annum. However, there is no upper limit for the maximum amount. Analyse the risk and appetite to figure out your capping amount.

o    The tenure of policy term is 10 years. However, you need to pay your premiums for 5 years only.

o     The entry age in to the policy is 14 years and the maximum age at the time of policy maturity should be 65 years.

o     Benefits on maturity are the USP for the HDFC SL Crest ULIP plan. The maturity fund paid out is equivalent to the Net Asset Value on the current date of redemption.

o   You family is protected even after your demise. The amount paid out is either the sum assured or the fund value whichever is higher.

o      The ULIP is eligible for tax deductions under 80C too!

·         Investment Options Available:

o   Blue Chip fund: Get exposed to large cap equity funds and related securities. Even if the risk entailed is high, it is a safer option because 80% of the investment is into equities and the other 20% is in to money market tools such as deposits, cash, mutual funds and others.

o   Opportunity funds: HDFC SL Crest opportunity fund is usually a very high risk, high returns deal. Very similar to that of the Blue Chip fund, the equity related securities are just higher than the former.

o   Balanced Funds: hedging of funds is always advisable for several reasons and HDFC SL Crest is no different. Medium appetite risk can draw investors towards a balanced option where the securities to equity proportion is spread in a proportion that is roughly 60-40 respectively. Additionally, debt funds help balance out the losses in case of major market fluctuations.

o   Income funds: a moderate risk plan, the funds invests in liquid mutual funds which are a part of the government securities. It has a higher duration and has better credit exposure.

How Do You Choose The Funds?

As part of the HDFC SL Crest ULIP, different investors can find a myriad of options for themselves. It could be debt, equity or even a mix of both. Young investors who are willing to experiment and risk the sum of investment go largely for the funds that boast of higher returns and higher risks. However, when one needs to settle down, investors start looking for suitably stable options such as debts and low risk equities. Additionally they expect the funds invested in insurance be more instead of putting it in the market for a stable return.

How to Choose the Best Pension Plan in India?

Retirement planning is one of the most sought after goals for most salaried individuals across the globe. After all, who doesn’t want to score a peaceful and prosperous retirement? Though everyone wants to live happy and content post retirement life, only a few are careful enough to plan well in advance for their retirements.

Given the existing inflation and the ever-increasing dearness, not planning your retirement well in advance may lead to a chaotic and full-of-pressure post retirement life. But you’ll be surprised to know that by simply choosing a good pension plan, you may easily score a great post retirement life.

Now, you may argue that there are virtually thousands of retirement plans and which plan should you opt for. Well, the secret is simple! You must choose a plan that’s most rewarding and offers you a lot of benefits post retirement.

To make things easier for you, here we bring to you some easy ways on how to choose the best pension plans in India. It only makes sense to keep these 7 important things in mind when planning to invest in a pension plan to ensure getting the best plan possible in the Indian Insurance sector.

7 Things to Keep in Mind When Fishing For Pension Plans in India

• Present Age-Age plays a very important role in pension planning. The earlier you will start, the more time you will get to accumulate a corpus for your pension. But in case, you’re starting late, you will need to choose a pension plan that allows you to build a huge pension corpus in a shorter span of time. 
• Intended Retirement Age– What age do you want to retire? Now, this is one question that is sure to influence your pension planning. In case, you’re planning to retire early, you will need to invest in a pension plan with great returns and huge accumulation. 
• Life Expectancy- This is yet another factor that determines the direction of your pension planning. If you and your family have high life expectancy, then you’ll need to start building a pension corpus early. And if you have a family medical history, it becomes even more important to build a pension corpus to use it for medical emergencies later. Don’t forget, due to the advancements in the world of medical sciences, the life expectancy ratio is dramatically increasing per year.
• Inflation-Okay, you probably already knows what inflation really is. But you’ll be surprised to know that inflation can quickly eat all your savings and leave you empty handed. Therefore you need to carefully consider the current and expected inflation rate when deciding on the accumulation and distribution period of your pension plans.
• Investment Portfolio – Yet another factor that you must carefully consider when planning your pensions or retirement is your investment portfolio. Carefully consider how much life insurance, health insurance and medical insurance do you have in hand and till what time are they going to support you and your loved ones. Basis this analysis, determine the right amount of corpus you need to build for your retirement and invest in a pension plan accordingly. 
• Present Lifestyle-If you have been living a really healthy lifestyle, then you will have less chances of contracting an age prone disease in your retirement years. Hence, you may choose to build a pension corpus at a slow and steady pace. However, if you are the one amongst thousands who are forced to lead an unhealthy lifestyle due to work pressure or otherwise, you will more chances to contract age prone diseases. Therefore, it makes sense to choose a pension plan that allows you to build a huge pension corpus in a shorter time frame.
• Spending Pattern- Last but certainly not the least, your spending pattern too influences your pension planning to a greater extent. If you have been living a financially frugal life, it makes sense to choose a pension plan that allows you to build a huge pension corpus quickly.

Conclusion

Remember, if you’re looking to retire in peace, you must have the assurance of a substantial pension amount in hand. That’s why it makes sense to be careful and heed to the above mentioned pointers while pension planning.