Many investors face this situation.
When we suddenly need money, redeeming our mutual funds or selling shares or surrendering Life Insurance Saving policies often feels like the fastest solution.
Even though we know it can affect our long-term financial goals and reduce the power of compounding, immediate cash needs come first. Same is the case with Life Insurance Saving oriented policies. People buy policies for long term goals using its “market immune” feature as hedge against the market volatility. However, when it comes to cash-crunch, people don’t hesitate to sacrifice their savings meant for long term important goals like Child Planning or Retirement Planning.
That’s where the trusted advisor, help them make the right decision.
But what if we could access funds without selling our investments?
Almost all Life Insurance Saving plans comes with a feature of “Loan against Policy”. Its a simple, time saving & prompt. Repayment of principal can be postponned till maturity or money back instalment. Interest amount should be paid regularly.
For Mutual Funds & Shares “Loan Against Mutual Funds & Shares”—a simple, quick solution that helps investors get the liquidity they need while staying invested. The below table will be useful to understand how “Loan Against Security” is effective rather than redeeming the funds.
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