The Rise of Affluent India & the Need for Insurance

 

In a report released by Goldman Sachs titled ‘Rise of Affluent India’, it has been stated that by 2027, there will be around 100 million affluent Indians. From 2019 to 2023, there has been a compounded growth of 12-13%^* annually, it states. The firm used different parameters to define affluent Indians. For instance, the number of people who took a flight at least once a year, the number of individuals who have a credit card or postpaid connection, etc.

However, one must wonder if a bump or increase in income and having a credit card are enough to secure one's financial future. The need of the hour is to create financial resilience and protect your wealth. That’s not all, you will also need to ensure wealth grows with time. This can be done if you are smart with your money. So, how do you do that?

Protection against economic loss

Growth is rarely continuous. It is well understood that the nature of growth periods is usually cyclical. Prosperity or affluence doesn’t have to be. 

During high growth periods, most of us tend to assume that it may last forever. Situations in life, can change. Investing in insurance is advisable at this stage. Having insurance means the future is secure no matter what. Insurance can also help protect your wealth and grow your investment.

Continuity and Legacy

Everyone wants a comfortable life. It is no longer an aspiration. It’s a need. This is also something, along with a legacy, you would want to leave behind for your family. This is especially true for affluent individuals.

Wealth management strategies, estate and succession planning, can go a long way in helping you ensure that the transition is seamless no matter the circumstances. The idea here is to invest in strategies that can help with your needs.

For instance, you can consider investing in a ULIP, like HDFC Life Smart Protect Plan, which is a life insurance plan that provides protection and helps create wealth for the future. Since ULIPs provide dual benefits, you know you have life coverage and the returns from the market-linked investment to ensure financial continuity.

With this plan, you can choose from 4 plan options and 7 Funds¹ to choose from. You can also get Maturity and Death benefits, flexibility to choose the premium payment option; along with Minimum Assured Benefit² in the form of capital guarantee in spite of market fluctuations, etc. 

Health is Wealth

Being affluent comes with its privileges. That said, health is something that people take for granted until something happens. This is especially true for affluent individuals who experience a high amount of work-related stress.

How do you protect your health and wealth at the same time? Look for investments that come with both benefits. For example, you can consider a plan like HDFC Life Click 2 Protect Super. As a term plan, it provides the financial protection that you may need. You get the option of increasing death benefit up to 200 % under the Life Option, an additional amount payable in case of accidental death³ during the policy term, get additional cover for your spouse⁴ as well, etc.

You can club this term insurance with a rider^** like HDFC Life Critical Illness Plus Rider that provides a lump sum amount on the diagnosis of any of the mentioned critical illness⁵. The purpose of riders is to provide comprehensive coverage for medical expenses that may arise on diagnosis.

While being affluent is good, investments and insurance can help you and your family lead a comfortable life in the future. The idea is to find avenues that can secure your wealth, build a corpus and have a financial fallback as well. 

Sources:

India’s affluent population is likely to hit 100 million by 2027 (16/02/2024) Goldman Sachs.

https://www.goldmansachs.com/intelligence/pages/indias-affluent-population-is-likely-to-hit-100-million-by-2027.html#:~:text=In%20tandem%2C%20the%20wealth%20of,100%20million%20people%20by%202027

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ARN: ED/03/24/10017