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Investment Plans

About Investment Plans
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.

Advantages of Investment Planning
Good ReturnsFinancial ProtectionTax BenefitsLoanRiders BenefitsDual Benefits
These plans are usually better if we consider on basis of post-tax yield as compared to other investment options.
The policy covers short-term and long-term goals such as children’s education, marriage, etc. These can be fulfilled in a planned manner.
Policy holder gets a tax deduction for the premium they pay and the sum assured received on maturity is tax-free under India’s Income Tax Act.
Loan can be availed on the investments in case the insured need money at a later stage.
Different riders can be added to the policy like critical illness, accidental death, waiver of premium, etc.
Dual benefits of saving money for future along with increasing the wealth by investing in stock markets can be achieved.
Types of Investment Policies in India
Short Term Investment PlansLong Term Investment PlansChild Investment PlansRetirement Investment Plan
An investment which is done for 1 year is known as short term investmentplans. These offer great yields such as savings account, Debt Instruments, gold or silver, Large Cap mutual funds, Bank Fixed deposits, Treasury Securities, Money Market Account, Stock Market, Fixed Maturity small investment plans and many more. These are effective investment plans. .
These plans run for a fixed time period of more than 1 or 2 years. These offers great returns with high rate of interest. There are several plans such as Public Provident Fund, Mutual fund, Direct equity, Real estate investment, Post office savings scheme, Company fixed deposits, Invest in IPOs and ULIPs among others.
In this, the policy holder gets great financial cover to take care of their child’s education expenses, marriage expenses and also health cover.
This investment offers a great coverage which helps the insured in enjoying post-retirement life. This is basically insuring the future of the policy holder.