The process of matching financial goals and objectives with the financial resources is known as investment plans. These are the financial yields that deliver opportunity to generate wealth for future. These plans offer to help policy holders in disciplined and periodic investment into various funds eventually so as to achieve their financial goals. They help the insured to save regularly and be sufficiently prepared to meet family’s financial needs in the future.
Investment plans are a combination of both investment as well as insurance. A part of the premium paid is used to provide insurance coverage and the remaining amount is invested in the financial tool as per risk taking capability. These plans help to fulfil Short-term as well as Long-term financial goals. It is a good option to increase wealth and save taxes.
Investment plans are of two types, Unit Linked Insurance Plans or ULIPs that gives yield based on overall market performance, and traditional endowment policy that provide a sum assured when the term of policy matures. Both of these policy plans offers life insurance coverage along with a financial savings option.