We all have a common aim in life; to be happy and fulfil our life goals. The secret to everlasting happiness lies in our own hands. We all want our dreams to come to life. Different goals such as getting married, buying your dream house, giving your children the best of education and see them getting married, retirement, etc. are some of the life goals we all wish to fulfil. With the help of smart goal-based investments, you can fulfil all of these. Investment plans help you when you when you need funds the most during a financial crisis attaining a mixture of both investment and insurance.
Endowment plans inculcates a habit of saving money in a disciplined manner to meet your future needs. It also offers a life risk cover in case anything uncertain happens to you. Endowment plans offer low returns, however, these returns are risk-free for guaranteed sum assured. To add to it, these plans also offer tax benefits. These are the reasons why, you should invest in an endowment plan.
ULIP generally known as Unit Linked Insurance Plans are a mixture of both investment as well as protection. ULIP is basically a type of insurance product that offers investment opportunities in the capital market to the investor along with providing risk coverage. Here, the buyer or the investor can invest in bonds, stocks, mutual funds, etc. ULIPs can be tailor-made as per the buyer’s requirement.
Fixed Deposit (FD) are investments wherein the rate of interest remains unchanged throughout the nominated tenure. So, the investor knows about the returns on maturity of the FD that he/she will receive. This type of investment plans are best for risk-averse investors. The rate of interest rates will differ between banks and other financial institutions
As the name suggests, a money-back plan is the one in which the problem of liquidity is resolved during the policy period. Simply put, you get regular money-back at regular intervals of the time. This plan offers the percentage of the sum assured regularly during the entire tenure of the plan. These money-back payouts are nothing but the survival benefit that the plan offers
National Savings Certificate (NSC) is a tax saving investment, government backed. Any Indian resident can purchase this from a post office within the country. Typically, with denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000, these are issued. National Savings Certificate being is a perfect instrument for those who have a low risk appetite or those who wish to diversify their portfolio via investing in a fixed return instrument
Mutual funds are types of an investment plan that are managed by a professional Asset Management Company (AMC). They bundle the funds collected from various investors and further invests this amount in bonds, equities and securities, keeping in mind the unique investment purposes and risk appetite of every investor. In mutual funds, the units are bought and sold as per the prevailing NAV (Net Asset Value) for creating a vigorous portfolio of equities, bonds and securities.
Saving bonds are debt investment plans wherein the investors have a facility to loan funds to the government or the entity like an organization. This amount that is borrowed is invested by the organizations or the government for a specific duration at a particular rate of interest.
National Pension Scheme (NPS) was introduced in January 2004 and is a government-sponsored pension scheme tailored for government employees. However, non-government employees also were extended this benefit from 2009 onwards. An investor have a choice of contributing to this pension scheme as per his/her discretion. They can also withdraw a certain amount of the corpus in lump sum and then invest the balance corpus in annuities to build a robust corpus for post-retirement years.
Public Provident Funds (PPF) were launched in 1968 by the National Savings Institute. It is one of the most popular tools of savings and investment instruments to save taxes under Section 80C of the Income Tax Act, 1961. The minimum amount to be invested annually is Rs. 500 and a maximum of Rs.1.5 lakh. It attracts a yearly interest rate of 7.6%, which further gets compounded. PPFs are flexible enough since you can pay the investment amount either in lump sum or via a maximum of 12 easy instalments in each financial year
Upto 25 yrs
You’re young and healthy and probably must have just begun your career a year or two back. Life insurance certainly may not have yet crossed your mind. But trust us; your mid-20s are the best and smart time to start looking at life insurance. Simply put, the younger and healthier you are, the lower it would cost to insure you. You may have to shell out a very low premium today for you to potentially save thousands of rupees in the future
25 yrs to 40 yrs
40 yrs to 60 yrs
Above 60 yrs
Whole life insurance plans are the most comprehensive types of insurance that offers life cover to the policyholder. Since these plans come with a component of saving and last for lifelong, it would be wise to opt for whole life insurance plans for people who are above 60 years of age.
Let’s understand how a money back plan works with the help of an example:
Buying the best money back plan would depend on certain parameters such as:
Considering these important factors, you can narrow down your search on the best money-back plan.
You need to produce the below mentioned documents to buy a money-back policy:
No, money-back policies aren’t transferable. But, it has a facility wherein you can make an assignment in the name of another person.
Keep in mind the below checklist before purchasing endowment plan:
Equities as well as large-cap mutual funds are the top investment plans to achieve high returns. But, experts suggest consulting your financial advisor in order to invest as well as balance your investment portfolio.
Gold is certainly a good investment option. Reason being, it beats inflation by aligning the returns along with the inflation rate. The returns that you get by investing in gold are inversely proportionate to capital growth of equity investments. Simply put, gold generate higher returns especially when equity performs poorly.
Mentioned below are some of the lowest risk investments:
ULIPs offer a combination of both insurance as well as investment. A certain amount of the premiums paid is put in insurance and the balance amount is invested in funds (as per the policyholder’s choice) such as mutual funds, bonds, stocks, etc. ULIPs are primarily an insurance tool. But, there are risks in this due to capital market investment. Here, the risk of investment is borne by the policyholder. The insurer doesn’t bear these risks. Those with higher risk appetite should invest in equity funds. Those who wish to preserve their capitals and carry a low risk appetite, debt income funds are the best options. Those with medium-risk appetite should opt for balanced funds.
Yes, NRIs can invest in a ULIP.
No, ULIP doesn’t fall under LTCG.
No, the surrender value won’t be taxable.
Before you make payment for the premiums, these charges are levied that are first imposed by the company initially.
You very well know that you’ve paid for it but are hoping to never require using it! When you file an insurance claim, you probably have suffered some type of loss or damage that is insured by your Insurer. This is when your Insurer offers you coverage and compensation for the losses covered or for the damages after validating your claim. So it is vital to be familiar with the claim process to avoid any headache at the later stage.
You may have bought an insurance policy, yet have thousands of queries and doubts. Our ‘Your Policy’ section is the fastest way to resolve your insurance related doubts and queries. All you need to do is attach your active insurance policy and write to us about your queries. We never let our customers down.
Many questions may come in your mind before buying an insurance policy. ‘How much insurance I would need, how many years I shall invest for, what would be the premium, etc.. Insurance Calculators are life-savers. They help you know your insurance needs and assess the potential costs. Grey Font brings to you various Insurance Calculators and interactive tools to help you calculate your insurance needs. In order to get better results, ensure to enter a value in all the possible fields.
ULIP provide life cover to the policy holder and helps in investing through mutual funds, stocks, liquid funds. Know the benefits and types of investment funds under ULIP.
Life insurance can be combined with investments and many life plans allow you to do that. Check 4 Types of Life Insurance Investment Plan You Can’t Miss.
Planning to buy a Health Insurance Plan - Know about pre-existing diseases in a health insurance policy and its consequences on your medical insurance premium. Read more!
Term Insurance - Are you planning to buy Term Insurance? Check 5 Common Mistakes to Avoid While Purchasing Term Insurance Plan
Life Insurance is also one such subject that keep people engaged enough to ask a plethora of questions.Here are 6 Questions to Ask Before You Buy a Life Insurance Policy.
Pension Plan is the best option to ensure safe, tension free and finanically secured retired life. Check and understand all the features of pension plan.