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Way to wealth

Insurance is a systematic investment plan that forces you to invest money periodically to make your financial goals work.

Pranav MishraWhenever I have attempted to achieve a meaningful goal, I have discovered that I need to apply what I started calling the 3 Ps to bring sanity and reassurance to the process. The 3 Ps are Patience, Practice, and Persistence. And life insurance is a financial product that instils all these three virtues into one. Being long term by nature, these products, if chosen well, can help an individual achieve financial goals.

Today’s life insurance products are designed as effective financial tools that will enable consumers to plan and fulfil their financial goals—saving for their child’s education or marriage, wealth creation or even creating a retirement kitty. In a way, they offer the flexibility and convenience that your financial plan needs.

Indian consumers have started to relate to the stock market and now appreciate the potential of investing in marketlinked products. This is primarily because of the rapid growth of the Indian economy, the rising stock market and the increased awareness among consumers on how the stock market functions.

It is interesting to note here the foresight displayed by life insurance companies, which introduced the market-linked or unit-linked insurance plans to allow consumers to take advantage of the bullish market and at the same time fulfil their core objective of providing life cover.

Patience: Achieving your financial goals and dreams will not happen overnight. As much as we would all really love to accomplish our goals in a few years, this is an ongoing process.

 Defining your financial goals is not a one-time task; you need to keep adding new plans at different stages in your life. Insurance, being long term in nature, lets you experience the benefits of patience over the long term, especially helping you grow your financial corpus.

Practice: We all admire the skills of Olympic ice skaters, pro golfers, and concert pianists. But do we remember that they didn’t acquire their skills overnight? They had to practise hours on end for years to achieve their dreams.

Similarly, life insurance helps you practise the art of disciplined investing. You are aligned to parking regular sums of money to achieve your various financial goals. Insurance is a systematic investment plan that forces you to invest money periodically to make your financial goal work.

Persistence: This is the quality you need to have when you are losing on patience and practice. It is persistence that keeps you going when you might feel like giving up. As you achieve important milestones and goals, you will find your resolve and commitment deepening. Insurance needs persistence to see the effects and benefits that are promised.

Persistence: This is the quality you need to have when you are losing on patience and practice. It is persistence that keeps you going when you might feel like giving up. As you achieve important milestones and goals, you will find your resolve and commitment deepening. Insurance needs persistence to see the effects and benefits that are promised.

Pranav Mishra is Senior Vice-President, ICICI Prudential Life Insurance