What is wealth creation?

Wealth creation refers to building wealth through a variety of methods using financial products. When you invest in financial products for a long period, you get back higher returns. Hence, it is an essential part of your financial journey in order to achieve all your long-term financial goals like your dream house, your child's education, and much more.

Why is wealth creation important?

Wealth creation is essential for a number of reasons:

1. It provides you with money to fulfil your future goals.
2. It offers a steady flow of income even when you are no longer employed or working. This can be a great way to ensure financial liquidity and help your loved ones to continue to live a life of comfort, abundance, and security.
3. Retirement can be a challenging phase with increasing medical and daily expenses. However, with wealth creation, you will never experience a financial crunch and be independent for as long as you live.

Are there some tips for long-term wealth creation?

When it comes to long-term wealth creation, the following measures can be helpful:

• You should start by setting a financial goal for yourself. Keep in mind that your goal needs to be realistic and should promote long-term wealth creation. When you set a goal, make sure that you choose an appropriate timeline for it too. So, you can achieve them without being frustrated or facing disappointments.
• The power of compounding forms the foundation of long-term investments. The power of compounding is a concept that will help in building a considerable amount of money in the future. The concept of compounding revolves around reinvesting the returns back into the initial investment to earn higher growth. As a result, the earlier you start investing, the higher will be the rewards. No investment is too small. So, regardless of your income, you must begin your journey at the earliest to create a sizeable amount of money.
• Consistency can go a long way. This is why you must remember to invest periodically. Monthly, quarterly, half-yearly, or yearly plans can turn into substantial investments over time, without creating a burden on your present needs or wants.
• Having a well-balanced and diversified portfolio will guarantee that your risk is under control. Keep a combination of debt and equity funds in your financial plan to eliminate the threat of market fluctuations and unexpected losses.

Wealth creation plan offered by ICICI Prudential Life

ICICI Pru LifeTime Classic^* is an ideal wealth creation plan for long-term savings. This unit linked insurance plan⁺ offers you two major benefits – financial protection for your loved ones in the form of a life cover¹ as well as the opportunity to create significant funds for your financial goals.

The plan offers 4 portfolio strategies, and you can choose any of these as per your goals and risk appetite. You can choose between equity, balance, and debt funds, and switch between these funds at any point in time, without any additional charges. In addition to this, the plan rewards you with loyalty additions^{^} and wealth boosters` for staying invested for a longer period and paying all your premiums without any defaults. This considerably adds to your overall earnings. You can also choose to pay the premium monthly, half-yearly, yearly, or stick to a one-time payment. Lastly, you get tax benefits of up to ₹ 46,800/-^# on the premiums paid, under Section 80C of the Income Tax Act, 1961.

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