Salaried professional with surplus income: Can insurance plans deliver long-term returns amid stock market swings?

I am a 41-year-old salaried professional. I got a good raise this year along with a bonus, and I am looking for investment options. However, the stock market volatility looks very discouraging. Are there any long-term insurance plans that can provide me returns over the long term and provide financial security, despite the uncertainty?
 
Advice by Satishwar B., MD & CEO, Bandhan Life
 
Congratulations on your raise and bonus—it’s a great time to take your financial planning to the next level. And you're absolutely right to be cautious. In times of market volatility, it’s natural to feel hesitant about investing, especially when the goal is to balance long-term returns with capital protection and financial security.
 
The good news is that there are insurance-backed investment options that offer market-linked growth, downside protection, and the security of life cover—helping you navigate uncertainty with confidence. Let’s walk through three such options you can consider:
 
1. Participating (Par) Plans

A Participating (Par) Plan is a traditional life insurance policy that not only provides life cover but also shares a portion of the participating fund profits (if any) with you in the form of annual bonuses.

Here’s why it works for you:

The bonuses you receive can either offset future premiums (reducing your out-of-pocket cost) or be reinvested to enhance your maturity benefits.
Par plans are not directly linked to market volatility, so they offer stable, low-risk growth—making them ideal when market sentiment is uncertain.
They come with the safety net of guaranteed benefits, offering peace of mind alongside gradual wealth creation.

You can also choose to reinvest the participating plans’ income or maturity proceeds in other financial instruments—such as mutual funds, fixed income plans, or even equity—based on your evolving risk appetite. This allows you to diversify your portfolio and build wealth further without compromising on protection.
Par plans are especially useful if you're looking to preserve capital while steadily growing your money over the long term.
 
2. ULIPs with debt or flexi-cap fund options

If you're still interested in market-linked returns but want to limit risk, a ULIP (Unit Linked Insurance Plan) with a debt fund or flexi-cap fund allocation can be a good choice.

How this helps:

Debt funds offer relatively stable and low-risk returns, making them suitable during uncertain or bearish markets.
Flexi-cap funds, on the other hand, give your investment manager the freedom to shift between large, mid, and small-cap stocks depending on market conditions—helping you navigate volatility more effectively.
ULIPs also give you the option to switch between funds without tax implications, allowing you to rebalance your portfolio as your goals or market conditions evolve.
And don’t forget, you get life insurance cover as part of the package.
For someone like you, a well-managed ULIP with a conservative fund allocation like our iInvest Advantage could provide long-term growth with controlled exposure to market fluctuations.
 
3. Hybrid Plans

If you’re looking for a solution that offers both capital protection and upside potential, consider hybrid insurance plans that combine ULIPs and endowment policies.

What makes these plans attractive:

These plans offer guaranteed returns or at least return of all premiums paid, along with fund-based growth on maturity.
This structure ensures you don’t lose your capital, even if markets remain volatile, while still participating in long-term upside of the market.
Hybrid plans also come with built-in life insurance cover, so your family is protected no matter what.
 
They’re an excellent option if your investment approach is growth-oriented but cautious—especially when you want to ensure that your hard-earned bonus works for you without exposing your savings to excessive risk. You can go through our plans on bandhanlife.com

What should investors do

Market cycles are a part of long-term investing—but your financial security doesn’t have to be compromised because of short-term volatility.

Whether you go for a par plan for stability, a ULIP with debt or flexi-cap options for balanced growth, or a hybrid plan for safety with upside, you’re making a smart move by investing through life insurance. These plans not only help you grow your money but also ensure that your family is financially secure, come what may.
 
In times of uncertainty, the most powerful investment is one that grows with you while protecting what matters most. Now is a great time to put your bonus to work—and let your money give you the peace of mind and security you worked so hard to earn.