3 Types Of Investment And Insurance Plans

From the time you start earning, the chances of accumulating funds are higher. However, the savings habit inculcated in Indians overlooks the benefits of insurance based investment plans. While a majority of Indians prefer savings over investments, a systematic insurance based investment plan (SIP) proves beneficial in multiple ways. To channel your investments in the right direction, an investor must know the options available in the market to reap benefits at a minimal cost.

Although there are tons of investment options, one must know which alternative is worth their penny. Investing in the right fund is essential as it can garner returns. Moreover, it allows the growth and accumulation of your funds over the due course which helps to meet your life goals. Therefore, take a look at the significance of investing in the different types of insurance based investment mentioned below:

Importance of investment vehicles:

While we agree savings are crucial, the investments play a significant role during financial planning. When you save money and leave it in the vaults of the banks, the money lies there in one corner without being productive or making your returns stagnant. However, this is not the case if you opt for market linked investment options. When you invest in one of the investment options, you allow the growth of your financial portfolio. Additionally, smarter investment solutions help you to maximize your gains which eventually allow you to maintain your lifestyle in the future.

Here are a few reasons why opting for investments options is a healthier option than just savings:

• Helps you achieve your Life Goals in the long run. For example: a happy retirement, expanding your business, owning your dream home etc.
• Ensures a steady flow of income during retirement.
• Allows the policyholder to save more money by granting tax saving benefits.
• Helps the investor to combat the fear of inflation as well as market volatility.
• Accomplishes your life goals by helping in creation of a substantial amount of the corpus.

Due to the tons of investment vehicles available in the market, an investor might get confused at the time of the purchase. Before purchasing an investment product, research and comparisons play a significant role. In the meantime, take a look at these different investment options mentioned below to make informed decisions:

Types of investment options in India:

1. Unit-Linked Insurance Plan

A Unit Linked Insurance Plan (ULIP) provides the benefits of investment and life insurance cover under a single roof. By employing a ULIP Policy, a policyholder can financially secure his family as well as ensure his involvement in market linked investments. Additionally, these dual benefits helps the investor to realize his life goals and generate wealth in the long run.

2. Savings Plans

Money-Back Plans or Savings Plans are preferred by those investors who are looking to gain guaranteed returns on their investment. When you purchase a savings plan, you are eligible to receive a guaranteed^* amount when your policy matures. In simple terms, the benefits are paid at the time of maturity and the sum assured is given along with bonuses(if declared) to the policyholders as per the terms of the product.

3. Retirement Pension Plans

To financially secure your lives during the retirement stage, the insurance companies have introduced ULIP Pension Plans. An investment in these retirement investment plans not only helps you gain returns but also guarantees^* long-term benefits depending on the type of product chosen.

To sum up, the above investment options in India offers its policyholder with multiple benefits. To land with the most suitable and affordable insurance based investment plan, consider the needs of your entire family and assess your budget. Be smart with your investment decisions as it will help you generate a huge corpus to fulfil the life goals of your family with ease.

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