4 Types of Insurance And Investment Options You Should Always Have

What do investors look for when it comes to investments? Needless to say, the maximum number of investors look for a higher return on investment along with lower risks. While there are only a few investment plans that take the risk appetite of the policyholder into consideration, the rest of the policies have certain risks attached to it. Investing in a plan which only generates high gains means higher chances of loss of money. An ideal investment policy guarantees low costs as well as high returns at an affordable rate.

If you’re looking for the best ways to invest money, go through the following guide on best investment plans given below. Take a look:

Why does one need an investment plan?

Today, investments play a key role because earning money is just not enough. There is no denying that everyone works hard to earn their source of income. In order to lead a healthy and stress-free lifestyle, it is important to make investments rather than letting your money lie stagnant in the locker of your bank. Take a look at these few reasons why investors need to opt for an investment plan:

  • Growth of money

When you opt for an investment in ULIPs, stocks or bonds, the investor is eligible to receive returns on investment in the long run. The provision of these higher gains pave way for the creation of wealth over the due course of the policy.

  • Retirement security

Incorporating all the savings into an investment portfolio helps the investor to survive his retirement phase. At the retirement stage, take lower risks and invest in the debt funds of a ULIP Policy.

  • Fulfillment of financial goals

Since investments reach a higher rate of returns than savings, it is typically easier to meet the financial goals quickly. When you receive higher returns, you can easily achieve your lifelong dream of buying a new car, a new house, and so forth.

  • Exemption of taxes

Investment plans under Section 80C of the Income-tax Act, 1961 exempts the investors from the payment of taxes. Under Section 80C, the premiums paid towards the policies are deducted up to Rs. 1.5 Lakhs on the taxable income.

  • Higher returns

Although investment plans provide high returns to its policyholder, the rate of returns depends on the type of policy you have invested in. In order to yield higher returns, invest in the equity funds of the ULIP Policy.

What are the 4 best investment plans one should look forward to?

  1. Unit Linked Insurance Plan

Being a dual product, a Unit Linked Insurance Plan (ULIP) provides the benefits of protection and growth under one roof. This is simply because of the fact that a ULIP Policy is an amalgamation of investment as well as insurance. When an investor opts for a ULIP Policy, either he or his nominees receive a maturity benefit. At the death of the policyholder, the nominees obtain the sum assured amount for their security in the long run.

  1. Endowment Plan

When an investor invests in an endowment policy, he has the chance to insure himself depending on his wish and need. In simple terms, the insurance companies provide coverage for a specific period as listed by the investor. While the nominee receives sum assured and bonus on the death of the policyholder, the investor gains sum assured along with the bonus on the survival of the policy.

  1. Pension Plan

Opting for retirement comes with tons of responsibilities. One of the major responsibilities is ensuring a steady flow of income in order to live a relaxed retirement period. Purchasing a pension plan allows sufficient coverage in time of emergency without having to rely on your savings.

  1. Health Insurance Plan

In order to battle the unpredictability of life, an investment in a health insurance plan is a must. When you avail health insurance for you and your entire members of the family, you are financially protected in times of medical emergencies. Additionally, a policyholder can receive cashless benefits of hospitalization if he opts for the network hospitals provided by the insurance companies.

Now that you know these 4 types of insurance and investment options you should always have, what are you waiting for? Compare multiple policies in order to understand the basic features, benefits, and premiums offered by different companies. Later, select the right policy based on your needs in order to reap the maximum benefits.

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