When you want to invest your funds, there are several options that are available. You may choose money back, lifetime income, regular income, wealth creation, and short-term plans.
In the past, you often relied on your investment advisor to choose the appropriate investment plan. However, today different options are constantly evolving and finding a plan that provides good returns and security is challenging.
An investment insurance plan is beneficial in building a sizeable corpus over a period to meet your different financial objectives. This online investment guide provides different types of wealth management and insurance plans that allow you to achieve your life goals.
Using this online guide provides several benefits. Here are four such advantages:
- Lifelong services
You are able to avail the services of a personal consultant. The consultant will provide guidance and assist you through the entire investment procedure giving you lifelong services.
- Efficient decision-making
The online guide provides detailed and in-depth analysis of the various investment options in India. Additionally, you may use the real-time market intelligence and professional judgments to make efficient decisions that maximize your benefits.
- Claim assistance
In case you need to make a claim on your investment plan, an experienced professional will guide and assist you throughout the procedure. The professional expert provides support to complete the claim form and is available for any assistance until the successful settlement of the claim.
- Online management
You are able to manage all your investment plans online using virtual assistance. This ensures you are aware of all things that affect your policy. Moreover, you are assured of never missing a payment that may result in the lapse of your policy.
Understanding investment plans
You may have several financial goals over the short, medium, and long-term. Some financial goals include your start up idea, children’s education, wedding and your retirement. You need to invest in different investment plans to build a corpus that enables you to achieve these financial goals. Insurance investment plans are one such option that allows you to systematically invest your money to build wealth over a period. Such plans provide versatility to modify these as per your changing financial and life goals.
Different types of investment plans
- Money back plans
These plans provide a pre-determined pay out at regular intervals. This enables you to achieve your short-term financial goals. Moreover, you receive a lump sum amount when the plan matures.
- Regular income plans
You invest a certain amount in a regular term plan. It provides you with a regular income, which may supplement your earnings.
- Short-term plans
If you do not have huge expenses and have financial liquidity, you may invest in a short-term plan. Generally, these plans have a shorter premium payment term but offer benefits over the long-term.
- Unit-Linked Insurance Plans
Commonly known as ULIPs, these plans combine insurance cover with investment. A certain portion of the premium is invested in different instruments such as debt and equity to provide you with the opportunity to earn higher returns.
- Wealth creation plans
These plans allow you to invest smaller amounts over a longer period. The regular investment enables you to build a corpus in the long-term.
Tips to select an investment plan
Several investment options are available. Here are three things you must remember to select an appropriate option.
- Risk profile
You must assess your risk profile to see how much you are willing to lose. Generally, if you are young with lesser financial commitments, you may be willing to assume higher risk to earn greater returns. You may invest in a ULIP to earn returns through equity investing. However, if you are risk-averse, an endowment plan may be more appropriate.
- Investment duration
Insurance plans are available in different tenures from medium to long-term. ULIPs are a good long-term plan if you are willing to remain invested longer to earn higher returns.
- Financial goal
Every investment must be linked to a certain financial goal. This allows you to choose the right investment plan with an accurate duration that helps you achieve your goals.
When you invest in an insurance plan, you need to remember some important points. These are discussed below:
- Set short and long-term goals before investing your money
- Invest your money in a way that balances the risk and returns
- Diversify your portfolio to include fixed and liquid instruments
- Start investing with smaller amounts as per your financial situation and slowly increase as your income rises to build a sizeable corpus
- Regularly monitor and review your investment portfolio and make modifications as required
Benefits of insurance investment plans
- Offer financial protection to your family in case of an unfortunate incident
- The premium is eligible for tax benefits under section 80C of the Income Tax Act
- Maturity benefits are also tax-free under section 10(10D)
- Achieve goal-based investments and savings
- You may avail of a loan against your policy if you need emergency funds
- Build wealth over the long-term to achieve various financial objectives
An online guide provides you with all the information about different plans to help you make an informed decision to get your life goals done. Moreover, you benefit from expert advice and in-depth research and analysis to make informed decisions. Insurance investment plans combine the dual advantage of life insurance coverage along with investment to enable you to earn returns and build a corpus.