Investment plans are of great help in beating inflation and are helpful in building an ample amount of money. It must be chosen considering three primary goals:
Investment Term – Insurance policies offer a mid-to-long term period investment scope. ULIPs are really impressive long term investment plans.
Risk Profile – If you are young and prepared to take monetary risks, a ULIP is an appropriate option for you, But if you’re a conservative investor then a traditional endowment or money-back policy will go well with your requirements.
Ultimate Objective – Are you interested to build the principal sum for retirement or for your kids’ education?
Best Investment Product choices in Insurance:
ULIPs are the simple way for a customer to get into the stock market with the additional benefit of life coverage. Since these products offer IT benefits as well as market connected earnings, they are one of the finest long-run investment plans. ULIPs offer numerous investment funds to choose from, which allow you the flexibility to change between equity and debt, conditional on the market status, as well as risk profile.
Traditional endowment policies are every day saving plans which help build a principal amount as well as offer secured maturity benefits along with bonuses. These products provide you returns just like a set yield/deposit, however also include insurance risk cover as well as add-on riders to mainly build the security cushion, in case something goes wrong.
Money back policies are a type of endowment policy which offer regular cash to people who invest as they help build regular big capsules of monetary fund. They are really helpful for salaried class who want to save for purchasing big assets every three to five years.
Children Plans help parents build a secure asset for their kids’ future. Moreover, they offer a lot of insurance features which defend the engrossed or reason for corpus building; mainly for kids’ future education and expenditure.
Important things to keep in mind, at the time of investing in an life insurance policy
- Set financial objectives both short term as well as long term.
- Keep proportionality between risk as well as returns and allocate sums accordingly.
- Investments must be both liquid as well as set. This allows you to utilise them in crisis situations and also helps in avoiding wastage of money.
- Best is to begin with a little and bit by bit, add in invested sum. Select premium payment choices ranging from every month, to yearly, to single premium.
- Explore a lot before making an investment; use the assistance of financial advisor if required and invest in the best plan.
- Review your portfolio every year and make modifications accordingly.
- Ask questions – be free of all your uncertainties before investing.