Online Insurance – A Smart Long-term Investment

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Any money that is spent today so that financial benefits can be reaped in a future time frame is called as investment. An investment is an act of purchasing or building assets with a financial expectation that the initial sum would yield interests, capital appreciation, dividend or any other form of return that is profitable.

In the finance industry, there are mainly 5 different types of Investment – Stocks, Bonds, Mutual Funds, Alternative Investments, and Insurance.

via Pixabay
via Pixabay

Stock – When you buy stock or equity, you become a part of the business which sanctions you to receive any profits that the company allocates to its shareholder. These profits are called as dividends. However, stocks are quite volatile. The rates fluctuate on a daily basis. You make money when the price of the stock increases over time. The return can be high but there is a lot of risk involved in equity.

Bond – When you purchase a bond, you lend money to a government institution or a company. In return, they give you interest and even pay you the entire amount that you had lent them. There is little risk involved when you invest in bonds and so there is little potential return. This is the reason why the profit percentage is less here as compared to other securities.

Mutual Funds – Mutual Funds is a combination of both stocks and bonds where you invest your money with a professional institution who then invests your money in equity (large cap, mid cap and small cap) and bonds of government institutions, companies etc. However, mutual Funds are subject to market risks.

Investment in Precious Metals – Another type of investment is an investment in precious metals like Gold and Silver.

Insurance – Insurance is a healthy option of investment especially if you are the one who is wondering, “What to do with the spare money in the end of the month?” Besides now that one can buy online just by a Click to Insure, insurance is not just the best way for investment but also the easiest method. After online shopping, ab #YehBhiOnline.

Online Insurance: Benefits and Advantages

Online Insurance is the reason why I opted for HDFC Life to manage uncertainties and risk effectively. The biggest attraction towards online insurance policy from HDFC was that it was easier to understand, quite economical to buy for a self-employed person like me and was also instant.

Moreover, everything from filing to issuing the insurance policy happened right from the comfort of my home. Yes, it was not just hassle-free but also paper-free. All you need to do is select your age, gender, marital status, occupation, annual income and city to find a plan that suits your income. There are a lot of insurance plans. In addition, there are online calculators that allow you to evaluate the plan thoroughly. You can either read and understand or enquire about the same by asking an E-Agent by the HDFC Life Live Chat service. You can ask as many questions you have on the plans and offers.

Once you decide your plan with ‘Click to Insure’ through browsing, chatting and using online insurance calculator, you can then buy an online plan by calling HDFC Life on their toll free number 18002669777. Alternatively, you can mail them, SMS them or simply select the option ‘Call Me Now’

In case of any further queries, there is also a facility where you can directly talk to the advisor from the comfort of your own space. Being completely new to insurance policies, I preferred talking to the advisor who further cleared all my doubts.

From Policy tracker to policy servicing – paying premiums, making a claim and managing funds, everything is available online in just a click. Yes, buying an online insurance policy is any time better than buying through agents. Check out the TVC on Online Insurance

Although I was a bit hesitant to buy the online insurance policy initially, my hesitation and reluctance was taken care by the support system of the insurance company. This is the reason why more and more people are investing in Insurance and buying it online. However, one should buy Insurance early in life especially in their 20s. Well, there are not one but many reasons.

First of all, buying insurance when you are young helps you to save thousands of rupees as insurance premiums are considerably low. In addition, since you avail for insurance before any chronic health (most chronic conditions like cholesterol and blood pressure show up after 30), you pay substantial less in premiums. This is the reason why Insurance should be bought by youngsters in their 20s before they have an inherent need as age and health keep the premium low and gives more time for compounding of money.

Also Read: How to Start Trading in Stock Market ~ Beginner’s Guide 

In the present market scenario, where dividends and interest rates are falling, Insurance is an attractive option both as an investment and as a hedge against life cover. Moreover, it gives the investors looking for multiple benefits, an option to choose a policy that meets their requirement and needs.This is the reason why Insurance as an investment is a good choice especially if you are looking for long-term investments.

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