If you are a young professional starting out in life, now is the time for you to think about planning your future with the help of some of the best investment plans. If you plan to marry and settle down soon (as most people do), or have recently got married, it is a good idea to create a long-term financial plan for future life events. While we all have our savings accounts, fixed deposits and perhaps even a modest equity investment portfolio which we may control directly or by opting for mutual funds, it is also a good idea to opt for investment plans that guarantee returns when required.
What are investment plans?
Investment insurance is a branch of insurance that helps you plan your future and achieve set financial goals. For instance one can reasonably predict that expenses will be incurred at various stages of one’s life: setting up one’s home after getting married, the expenses incurred in childbirth and the arrival of a new member into the family, school and college education expenses and so on. At some point one would look to buying a home of one’s own; knowing that real estate investments tend to be the soundest of ways for wealth creation.
The best investment plans can help you plan ahead and ensure you do not face hardship when you need the cash. You can visit various insurance websites to compare investment plans and find one that suits your requirements so that you can live the aspirational life that you envision for yourself and your family.
There could also be other expenses that crop up in life, such as relocating to new job or city, deciding to redecorate or remodel one’s home and so on. While as a young person one would be looking at expenditures one would incur for one’s own marriage – such as an exotic honeymoon perhaps – later in life, it will be the marriage of children that will require very considerable financial resources to be utilized; making it vital for you to compare investment plans and choose the most appropriate one.
Later in life, one also has to take care of with old or infirm parents and perhaps deal with medical conditions themselves! At the end of one’s professional life, these are expenses that are difficult to deal with; so plan now for them. Since you know that there are going to be times in your life when you will require infusion of liquid funds to tide over expenses, investment plans can make a lot of sense.
Features of the best investment plans
Investment insurance plans could be for varied terms; usually for a minimum of 5 years up to a possible maximum of 30 years. These plans would need the insurance policyholder to opt for a term of their choice, choose the quantum of investment (premium payable) and also choose the type of investment plan that suits one’s lifestyle and financial coals. Some plans have fixed payouts while others have flexible payout options.
You can choose between traditional endowment plans and ULIP (Unit Linked Insurance Plans). You can choose the best investment plans depending upon your appetite for risk. Traditional plans have fixed payouts. These are moderate but assured returns. ULIP plans are typically equity linked and therefore more volatile and unpredictable. When the market is bullish returns would be higher and when the stock market is down the returns would consequently be lower. However, most companies do offer a base guarantee in terms of the return you can expect on your investment and give the insurance policyholder the option to monitory the fund performance either online or via regular reports.
To encourage people to invest in such insurance plans, the government also offers certain tax incentives. So tax savings are another feature of investment plans that makes them an attractive option. Remember to make your choice based on factors such as inflation, the need to maintain the lifestyle you have and have a substantial corpus for your future retirement.
Companies that offer the best investment plans
As urban Indians with aspirations for a better, more comfortable life and improved resources for the education of our children, we now have a choice of excellent investment plans and products that help secure our financial futures:
HDFC Savings Investment Plans – There are 8 fund options to choose from such as HDFC Life Sanchay, HDFC Sampoorn Smaridhi Plus, and HDFC Super Savings Plan. The policyholder has the option to choose the policy term that suits requirements. There are no allocation or policy administration charges payable and multiple premium payment options are available. Tax benefits include deductions under Sec 80C as well as death and maturity exemption benefits under Sec 10 (10D).
Bajaj Allianz Life Investment Plans – The company offers a choice of 7 funds to choose from, such as Invest Assure, Fortune Gain and Elite Assure and so on. You can compare investment plans such as their single premium Unit linked endowment plan, the non-linked endowment plan and so on. The insurance provider permits policyholders to make partial withdrawals from the fun, to decrease the assured sum and the option for systematic switching to manage investments better.
ICICI Prudential Life Insurance – offers various plans to help secure one’s future: ICICI Pru Smart Life is a unit linked insurance plan that lets you choose your investment strategy, avail tax benefits, avail part withdrawals and get rewards for longer investment duration.