Investments help grow your wealth, ensuring your long-term financial security. By selecting the right investment channels, you can set up an additional source of income. It can fund your life goals like buying a house, paying children’s education costs, building retirement funds, and more.
However, to get the maximum returns from investments, it is essential to start early. Here’s how an early start accelerates your investment journey.
Reasons to begin investing at an early age
- Secured future: When you first start earning, your liabilities are comparatively lesser, and the income you are left with is more. Thus, you can put aside a part of your income for future needs. Starting early is favourable because it gives you the flexibility to endure risks by investing in high-risk, high-reward financial instruments that help grow your money at a quicker rate. Later, you can realign your portfolio when with age, your dependents, life goals and financial responsibilities grow
- Investment appreciation with age: One other reason is understandably that, the earlier you start, the more you would be able to accumulate, and the better are your chances of reaching your financial goals. You can start your investment journey with small amounts and as your salary increases, you can simultaneously raise your investments as well. Increasing your investments gradually puts a lesser burden on your paycheck, and with such gradual increments put away over a long duration, your money grows
- Power of compounding: With compounding, your money works to make more money for you. You gain interest on the initial amount you invest. The interest then gets added to that amount, increasing your invested sum. The increased investment amount attracts an even higher interest amount. Over the years, with such increases, you earn significant profits
- Secured Retirement: Starting to plan for your retirement early in life increases your chances of financial stability in your golden years. Along with compounding, a long investment horizon also smoothens the effects of market fluctuations. Thus, the longer your retirement funds get to grow, the higher your funds will be, for the time when your paycheck stops
- Tax benefits: The beginning of your earning years also sets off your income tax liability. Hence, when your income starts, you need to implement tax-saving strategies. Timely investments in instruments offering tax benefits can reduce your tax burden. For example, ULIP premiums are eligible for deductions up to ₹ 1.5 lakh from your taxable income under Section 80C of the Income Tax Act, 1961
Managing money and taking charge of your finances by investing in the right instruments, early in life, helps to build wealth at a faster pace. With a sound financial status, you can also help your loved ones in achieving their goals and aspirations. You can explore and identify lucrative investment channels like ICICI Pru Lifetime Classic1 that provides a life cover7 to financially protect your family in case of an unfortunate event while also helping to build wealth2. Here are some of the top features of the plan:
- Financial protection: In case of an unfortunate event, your loved ones get an amount equivalent to the life cover7 taken and the prevailing fund value as a lump sum payout
- Rewards: Just by paying premium regularly and staying invested, loyalty additions3 and wealth boosters4 get added to your investment
- Top-up option5: Investment in the plan can be increased anytime as per your convenience by using the top–up facility
- Flexible payment options: Premiums can be paid monthly, half-yearly, yearly or as a one-time payment
- Invest in funds of choice: Various choice of equity, balance and debt funds, allows you to invest as per your risk appetite
- Tax benefit6: Enjoy tax benefits as per the prevailing tax laws
So don’t wait any further, start planning, saving, and investing for your future now.
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1 This is not a product brochure. For more details on the risk factors, terms and conditions, and the charges and benefits related to Surrender, Premium Discontinuance, Revival etc., please read the sales brochure carefully before concluding the sale
Past performance is not indicative of the future performance
2 Unlike traditional products, unit linked insurance products are subject to market risk, which affects the Net Asset Values and the customer shall be responsible for his/her decision. The names of the company, product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns. This is a unit linked insurance plan. In this policy, the investment risk in the investment portfolio is borne by the Policyholder. Unit linked Insurance products do not offer any liquidity during the first five years of the contract. The Policyholder will not be able to surrender/withdraw the monies invested in unit linked insurance products completely or partially till the end of the fifth year. On surrender, after completion of five years, the surrender value will be the Fund Value including Top-Up Fund Value, if any
3 Loyalty Additions: Each Loyalty Addition will be a percentage of the average of daily Fund Values including Top-up Fund Value, if any, in that same policy year. Loyalty Additions will be allocated among the funds in the same proportion as the value of total units held in each fund at the time of allocation. The allocation of Loyalty Additions is guaranteed and shall not be revoked by the Company under any circumstances. If the premium payment is discontinued any time after 5 years, the number of years for which premiums have been paid will be considered as the premium paying term for the purpose of deciding the Loyalty Additions to be paid for the rest of the policy term
4 Wealth Booster: Each Wealth Booster will be equal to a percentage of the average of the Fund Values including Top-up Fund Value, if any, on the last business day of the last eight policy quarters
Wealth Booster will be allocated between the funds in the same proportion as the value of total units held in each fund at the time of allocation. The allocation of Wealth Booster units is guaranteed and shall not be revoked by the Company under any circumstances. If the premium payment is discontinued any time after 5 years, the number of years for which premiums have been paid will be considered as the premium paying term for the purpose of deciding the Wealth Boosters to be paid for the rest of the policy term
5 Top-up premiums can be paid any time except during the last five years of the policy term, subject to underwriting, as long as all due premiums have been paid. A lock-in period of five years would apply for each Top-up premium for the purpose of partial withdrawals only. At any point during the term of the policy, the total Top-up premiums paid cannot exceed the sum of base premium(s) paid till that time. The minimum Top-up premium is ₹ 2,000.
6 Tax benefits of ₹ 46,800/- under Section 80C is calculated at the highest tax slab rate of 31.20%(including cess excluding surcharge) on life insurance premium under Section 80C of ₹ 1,50,000/-. Tax benefits are subject to conditions under Sections 80C,10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above
7 Life Cover is the benefit payable on the death of the life assured during the policy term
ICICI Pru LifeTime Classic UIN: 105L155V07