Protect your Life by Choosing the Best Investment Plan

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best investment plan, saving

• To ensure the future of the family is safe and protected financially it requires that individuals buy an investment cum insurance plan.The best investment plan should provide you the dual benefit of investment and insurance.

  From a financial planning perspective, when we gaze into the future there are two things that we need to plan for – predictable and unpredictable events. Predictable events are those which you know for sure are going to arise and at what time and stage in your life. These include one-time events like buying a house, vehicle and children education. Unpredictable events like death or diseases or accident leading to permanent disability cannot be predicted. If such an unpredictable event happens untimely the liability associated with such events would be huge and can be devastating for the family.

• To ensure the future of the family is safe and protected financially it requires that individuals buy an investment cum insurance plan. The investment will ensure that your savings grow large enough so that you are able to tide expenses related to predictable events while the insurance will ensure that all predictable expenses are met even if the insured does not live long enough to make the desired savings.

  What is a best investment plan for you?

• The best investment plan should provide you the dual benefit of investment and insurance. But choosing any investment insurance plan may not serve the purpose. It is essential that you choose a plan that is best for you. The best investment plan would ensure that your savings accumulate into a corpus that is large enough for you to comfortably meet the liability related to predictable events and the insurance is big enough to help your family sail over the liability associated with the uncertainties of life like death and disability. So before you draw yourself into choosing an investment plan make a list of future expenses and the corpus you would need to meet these expenses.
• The investment plans would offer you various options with regard to where to channel your savings. You can either choose to invest all your savings into equity or debt and even a mix of the two. The choice entirely depends on your personal risk appetite and the horizon of investment. If the horizon of investment is pretty long it makes sense to channel a large proportion of your savings into equity. As maturity approaches you can gradually switch to a fund that invests predominantly into debt to avoid investment risk.
• Last but not the least, make sure that you do not overpay for the plan you buy. Hence once you have decided on what you expect from the plan do an online comparison to shortlist an investment plan that asks for the lowest premium rates.

Investment Options for Stay at Home Women

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Investment plan

For stay at home women, there are various investment options to get a regular source of income with high returns. Investment plans are a great way to save up for the future. A money back policy ensures regular stream of income to help sustain you through the toughest of times.

Here are some good investment options:-

Money Back Policy

A money back policy is always a great option in unsure economic times. The rates of return are fixed and not affected by market forces. This means that you are sure to get sustained investment returns through this investment plan, unaffected by changes in the economy. In case of death or maturity of the investment plan, the insured or her nominees will get the entire insured some back. With such constant investment returns at fixed rates, this plan is perfect for women who have a considerable sum available to invest. One can time the investment returns on money back policies to coincide with times of need. Alternatively, these investment returns can be invested further at different rated for higher investment returns. It is all about using your money wisely.

Term Life Insurance

It is always wise to get a life insurance, even if one is not an earning member of the family. Such an investment plan will pay for your dependents with a considerable sum in case of your untimely death. It will also take care of any mortgages or payments made left in your name. Term life insurance is a good investment especially if you have kids. Taking care of children in case of your death can be a costly affair. The claim from term life insurance will help your spouse finance the extra help and care required for the children in such a scenario.

Traditional plans or ULIP

While choosing a money back policy, it is good to decide between the traditional investment plans or unit-linked insurance plans. While a traditional plan offers investment returns at fixed rates, the rates of ULIP fluctuate with market conditions. With a ULIP, you can choose which investment plans your premiums are further invested into. If you have a good grasp of the financial markets and understand your financial needs, you can choose a ULIP and invest your premiums at different rates to get very high investment returns. On the other hand, if you would rather go for a safer and consistent choice, we recommend a traditional investment plan like money back policy which assures consistent investment returns at fixed rates. These rates are independent of the market and are hence more dependable than ULIP rates of returns. On the other hand, a ULIP will give you more flexibility in terms of withdrawals from the investment plan and premium payment options, which are not possible in traditional money back policies.

At the end of the day, a ULIP can offer much higher investment returns but these are not always guaranteed. Changes in market conditions can majorly impact the rates of your investment returns. The premium investments can also be switched from high risk to low risk investment plans. It all depends on your abilities to invest the right amount at the right time.

So if you are looking for a good investment plan to safeguard your money, there are several options to choose from. As a stay at home woman, it can be hard to put your money in motion. But by using the right combination of investments and insurance policies, one can make sure that their money is put to good use and gets regular investment returns

What is a Money Back Plan?

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Investment plan, saving plan

 

Money back plans are life insurance plans which not only provide risk cover but also offer guaranteed survival benefits through periodic installments during the policy term period. On death of the life assured, the beneficiary gets the death benefit, which is equal to the sum assured irrespective of the survival benefits he or she had already got so far. In short, there is financial protection as well as life cover for the life assured.

Let’s find out more on the features of money back plans and the benefits one can get from them.

Features of Money Back Plan

Age

Generally, the minimum age of the life assured is 13 years while the maximum limit is 50 years. The limits vary from one policy to another.

Sum Assured

The minimum sum assured is by-and-large Rs. 50,000. There is generally no upper limit.
Term Period

Term period is often flexible where the policyholder can choose a period of 15 years, 20 years, or 25 years. Mode of Payment of the Premium

There are generally 4 modes of payment, which are monthly, quarterly, half yearly, and yearly.

Benefits of Money Back Plan

The money back plans are often considered to be the best investment plans as they provide financial benefit, risk cover, and miscellaneous benefits. For instance:
In case of death of the life assured within the term period, the total sum assured is paid to the nominee, irrespective of earlier survival benefits.
Annual bonus is calculated on sum assured and paid at the end of the term.

A money back plan is said to the best investment plan as survival benefit or the death benefit does not incur tax.

Useful riders are available with money back plans. Some of the benefits you can expect from the riders include waiver of premium in case of accidental disability, additional sum assured in case of an accident or critical illness, and reimbursement of hospital charges.

Guaranteed additions are also provided in case the insurance company, which owns the plan, makes a profit during a particular financial year.
Women-Centric Plans, Retirement Plans and Plans for the Mentally Challenged

Money back plans are not just for kids’ education or for those who want to spend money for a luxurious holiday trip. Many retirement plans for the elderly offer money back facilities where regular installments are given to the old couple after retirement. Plans to cater to single yet working women have also been formulated. There are plans that act as an investment policy for the mentally challenged. The benefactor pays the premiums while survival benefit helps the challenged kids in later years after the death of the benefactor. The investment income can be further rolled out into retirement plans for the kids.

Are these Plans Worth Buying?

If you look at a money back plan as an investment option, it may not be the best investment plan. The profit would only be 6-11 percent. However, money back plans are not just investment policy but a life insurance plan as well. It offers risk cover and also provides fixed tax-free income which you can depend even for a long period of 20 or 30 years. It is perhaps an acceptable combination of risk cover and savings option which gives you a peace of mind.

How to File a Claim in Endowment Insurance

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Investment plan

Endowment insurance plan is a type of life insurance policy that provides life cover as well as financial assistance to the policyholder for a specified period of time. It acts as a financial instrument in case there is a financial loss or death of the life insured during the policy term. If the life assured survives the term, a guaranteed maturity benefit is provided to the policyholder.

In other words, endowment plan is a life insurance cover which provides both risk protection as well as an investment option. Guaranteed returns on savings are provided to the beneficiary at maturity over a specified period of time. There are two types of endowment insurance:

1. Traditional Endowment Plans – In such plans, guaranteed returns are offered at maturity. Reversionary bonuses and non-guarantee bonus (incase the plan is a participatory one) is provided as well. There is no link with the upswings or changes in the capital market.

2. Unit Linked Endowment Plans – In such plans, the maturity benefit or financial assistance is provided over a period of time during the policy term. The beneficiary also gets the Fund Value, which is generated through profits from the capital market where the money has been invested by the life insurance provider. However, the Fund Value is not guaranteed and the policyholder can incur a loss when there is a market downswing.

Endowment insurance plans are designed in such a manner that the survival or maturity benefits of the policy can be en-cashed to meet various expenses or monetary commitments like child’s education, marriage or for the purpose of funding the retirement.

However, claim filing is important as it is the only way to get death benefit or maturity benefit in endowment plans.

Steps to File Death Claim

Claim form is Discharged

On death of the life insured, the insurer is notified immediately by the beneficiary. When the insurer learns about the loss, a claim form is forwarded to the beneficiary.

Claim Form is Filled in

To get the death benefit, the claim form must be signed by the nominee, legal heirs, or assignee.

The statement on the loss is provided by the last medical officer who checked the insured.

The hospital certificate must be provided by the hospital authorities where the insured has been treated.

Death certificate and statement of a witness, who was available during cremation, must be provided.

Discharge voucher, if required, must be also provided after filling in the voucher.

Additional forms can be provided for faster and effective sanction of the benefit, such as:

E-Certificate from the employer – in case the insured worked in an organization.

Certified copies of Post Mortem, First-Information Report, and Police investigation report – in case the death was unnatural.

Claim Form with Necessary Documents are Posted to the Insurer

Steps to File Maturity Benefit

Claim Form is discharged

As endowment plans are insurance cum investment plan a lump sum maturity benefit is provided at the end of the policy term. To ensure that beneficiaries get their benefit at maturity, the insurance provider releases claim forms or vouchers just one month before the end of the policy term.

Claim Form is Filled in

After receiving the claim form, the insured signs the form and fills in the required data. Any necessary document is attached with the form. All in all, the claim form must be complete.

To get the maturity benefit, only the insured needs to sign the form.

Claim Form with Necessary Documents are Posted to the Insurer

Generally, endowment plans are available for a period of 10, 15, 20, 25, and 30 years. So, the survival benefits under endowment plans are available only after the completion of the specified period and not before that.

 

How to Grow your Savings with an Investment Plan

We all need to save from our regular income in order to meet future expenses and contingencies. Savings when directed into an investment plan grow with time. There are various investment plans that are available and one needs to choose wisely so as to get the most out of your savings.

Choose wisely

The investment plan you choose should ensure the security of your principal and should help you earn an attractive return. Many investment plans come with a tax benefit, which helps you save tax on the amount you invest in the plan. The extent of tax savings you can generate would depend on which income tax bracket does your income qualify for.

Invest early

To get the best out of your investment plan, you need to start investing as early as possible so that your savings get adequate time to grow and can be channeled in the most promising investment avenues.

Be aggressive

When you start early, you have a longer investment horizon. Hence, you can be more aggressive with the investments you make. You can opt to invest in plan that has a mandate to invest in equities. It has been historically observed that over longer investment horizons equities provide much better return than debt. People perceive equities as high risk investment options but a large part of the risk (owing to economic / cyclic downturns) associated with equities are mitigated when the investment horizon is long enough.

How Good is a Traditional Investment Plan?

Choosing an investment plan can often be tricky, especially when there are so many options around. And when each of them comes up with their own high-decibel pitches, you need to ask the right questions to get it right.

What are traditional plans? These are the bread-and-butter of insurance, ranging from endowment plans through whole life, money back plans, and children’s plans. In essence, you would be able to get benefits in terms of returns on investments, apart from insurance cover to secure your future.

Does an online investment plan work for me? In an era of internet banking and online trading, when you need to make decisions at the speed of thought, the first thing that you need to know about an online investment plan is that it is not a different entity from its traditional counterpart. It has the same components, terms, requirements, and safety associated with the ones that the previous generation might have known of, if at all only better in terms of options and ease of transaction.

So, are traditional plans worth their salt? Apart from the benefit of getting returns, either regularly or in lump sum, there may not be much that you could expect in terms of flexibility. Further, since a portion of the investment goes into insurance, you would also have to compromise on the rate of returns. However, if you are not fussy about the rates of returns and if you want it all in one package, you may find some value in these investment plans.

Choose a Plan That Best Satisfies Your Financial Goals

One of the primary responsibilities associated with choosing a plan is to know what you are after. Whether it is child plan that you have been seeking out for, in terms of investment plan for your kids, or general insurance policies that you are trying to get your head around, it makes sense to understand your own circumstances initially before you get into your decisions head on. Here is a gist of things that you may need to think about in the process:

1.What are your personal financial circumstances? No one would know this better than you. Investment may not be child’s play, but it’s not rocket science either, if you know yourself better. Wrong decisions start with stretching too much out of the way, or by not putting as much into your decisions as may be required.  Plan based on your constraints.

2.What are your financial goals? This typically depends on the stage of life that you are in. Are you a beginner who could afford many risks? Are you someone who has had a few years of work experience? Are you someone with a family and looking for a child plan? Are you close to retirement?

3.What is your appetite to risk? Investments always come with risks, and your choice depends on the kind of risk that you are willing to take. High returns come with high risks, while low risk would provide low returns. You could choose medium risk as well, if you want to go for portfolio.

If you could respond to these three questions with clarity, you would be able to choose the right plan.

How Right Investment at The Right Time Can Help You Generate Good Income

There are several investment plans for you to subscribe from that will help you to earn a decent income and hence cover your future liabilities. Depending upon your specific need there are special investment plans. Investment is an art and by investing at the right time, you have more to gain

Income from investment may be a means of livelihood for some while for the others it is just that extra income they would be happy to earn. Depending upon how and where you invest, the investment income that is generated may be guaranteed, predictable or variable. It is always best to opt for such investment plans that have a mix of the three investment criterion i.e. risk, return, and liquidity.

Need for investment

While you are young and earning, you may not be able to appreciate the importance of income from investment, but it’s only when you get retired, you would realize the value of this income source, as for many retired people it is the only means of livelihood. If the retirement income is not enough to help you sustain your living standards, it pinches a lot and at this point of time you may get an urge to go back in history and spend a little bit more time and effort in managing your investments.

Besides retirement, investments are also needed to effectively manage future expenses like education for your son or daughter, or simply for providing financial security for your family in case of unfortunate events like death / accident / medical illness impacting the family income.

Avenues for investment

There are several investment plans for you to subscribe from that will help you to earn a decent income and hence cover your future liabilities. Depending upon your specific need there are special investment plans. For instance, if you are looking for retirement income, there are host of pension plans for you to select from.

Pension plans not only promises financial stability during your old age, but also give you tax savings from your current earnings. Pension plans may involve a one-time lump sum payment, which gets translated into annuities or income post retirement. You may choose from several options on how you would like the retirement income to be distributed to you. You may either opt to get the income in form of annuities for life at a uniform rate till the annuity is alive or payable in a period of 5, 10, 15 or 20 years after retirement. Also, these annuities can be paid monthly, quarterly, half yearly or even annually, depending on how you prefer.

If you are looking for insurance cum investment policy which is commonly known as Unit Linked Pension Plans, then depending upon your risk appetite, the value of insurance coverage you are seeking and the returns that you are targeting, there are options for you to choose from.

The need for investment services

While you are doing your investment, do not forget to hire a company that specializes in investment services. Investment is an art and by investing at the right time, you have more to gain. Besides, if you do not want to risk your hard earned money by experimenting, as there is more than guesswork that goes into investment planning, hiring investment services may be a good option. Investment services providers employ people who have proper training and instincts to help you pick the right investments at the right time, thereby helping you generate a handsome investment income.

 

How Right Investment at The Right Time Can Help You Generate Good Income

There are several investment plans for you to subscribe from that will help you to earn a decent income and hence cover your future liabilities. Depending upon your specific need there are special investment plans. Investment is an art and by investing at the right time, you have more to gain

Income from investment may be a means of livelihood for some while for the others it is just that extra income they would be happy to earn. Depending upon how and where you invest, the investment income that is generated may be guaranteed, predictable or variable. It is always best to opt for such investment plans that have a mix of the three investment criterion i.e. risk, return, and liquidity.

Need for investment

While you are young and earning, you may not be able to appreciate the importance of income from investment, but it’s only when you get retired, you would realize the value of this income source, as for many retired people it is the only means of livelihood. If the retirement income is not enough to help you sustain your living standards, it pinches a lot and at this point of time you may get an urge to go back in history and spend a little bit more time and effort in managing your investments.

Besides retirement, investments are also needed to effectively manage future expenses like education for your son or daughter, or simply for providing financial security for your family in case of unfortunate events like death / accident / medical illness impacting the family income.

Avenues for investment

There are several investment plans for you to subscribe from that will help you to earn a decent income and hence cover your future liabilities. Depending upon your specific need there are special investment plans. For instance, if you are looking for retirement income, there are host of pension plans for you to select from.

Pension plans not only promises financial stability during your old age, but also give you tax savings from your current earnings. Pension plans may involve a one-time lump sum payment, which gets translated into annuities or income post retirement. You may choose from several options on how you would like the retirement income to be distributed to you. You may either opt to get the income in form of annuities for life at a uniform rate till the annuity is alive or payable in a period of 5, 10, 15 or 20 years after retirement. Also, these annuities can be paid monthly, quarterly, half yearly or even annually, depending on how you prefer.

If you are looking for insurance cum investment policy which is commonly known as Unit Linked Pension Plans, then depending upon your risk appetite, the value of insurance coverage you are seeking and the returns that you are targeting, there are options for you to choose from.

The need for investment services

While you are doing your investment, do not forget to hire a company that specializes in investment services. Investment is an art and by investing at the right time, you have more to gain. Besides, if you do not want to risk your hard earned money by experimenting, as there is more than guesswork that goes into investment planning, hiring investment services may be a good option. Investment services providers employ people who have proper training and instincts to help you pick the right investments at the right time, thereby helping you generate a handsome investment income.

 

Start Saving Earlier – Its Now or Never!

Financial crunches are common in the lives of all individuals but all that has to be done is to choose the best savings plan and secure yourself and your family. Stocks, insurance and bonds are some of the investment options preferred by people to make savings.

Gone are the days when a livelihood could be created with a very little effort. In the present day world, it has become quite an expensive affair. No one would disagree with the fact that it is very difficult to lead a financially stable life. The rise in inflation has caused huge worries to individuals. It is sad to note that liabilities are reaching great heights for maximum number of residents in India. Saving money is not easy as it sounds. There are various risks and efforts that have to be taken to achieve the task of saving money for the future. Apart from cost cutting in our daily lives, investing in reliable plans is the best option available to start saving at an earlier stage of life. Stocks, insurance and bonds are some of the investment options preferred by people to do savings.

Financial prowess can be intelligently strengthened when the investment plans and techniques are used in the best way. It is believed that sound decisions can be taken on investment strategies if the individual has good skills in managing money. Care has to be taken to inculcate such money saving techniques to the younger generation to prevent financial instability in the future. Financial crunches are common in the lives of all individuals but all that has to be done is to choose the best savings plan and secure yourself and your family.

How can savings be done in the apt manner?

There is no lack in the variety of investment plans and savings plans in our country but the question arises only about getting the most suitable plan. Various factors have to be considered when choosing the right plan. It is common to see Indians opening savings accounts in a variety of banks. A lot of financial institutions have come up due to the awareness seen among people regarding saving for the future. When making decisions about a certain plan, care has to be taken to check if the best interest rates are provided. Every plan chosen by individuals should have the feature to provide the best possible investment returns at the end of the term. Saving plans such as pension plans, child plans and retirement plans are taken with the only goal to save money for emergencies and future expenses. Consistency is an important aspect in attaining financial success in the long run. Selecting the most suitable plan from a renowned company is also crucial. Long term investment plans are better than short term savings plans. Researching the websites of various insurance companies gives clear ideas on the characteristics and functioning of the plans along with details of the interest rates and returns.

Best savings plans preferred by Indians

Pension Plans, Child Plan and Systematic investment plans are the most preferred plans in India. Making great profits has been possible with the availability of various mutual funds. It has become a regular practice for Indians to invest a lot on such mutual funds. Monthly investment pattern in SIP makes it easy for people to invest money. The schemes vary based on the amount agreed to be paid on a monthly basis. This flexibility gives every individual the chance to save as much as he can afford. Some of the best endowment, money back, child plan, pension plan and unit linked insurance plans in India are offered by SBI life, Reliance life, ING Vysya life, HDFC Life and many more. Apart from these various other tax saving investments are taken by Indians to secure their future in an easy manner.