When it comes to investing in India, having a well-rounded understanding of the top investment plans is crucial. Whether you are aiming for long-term wealth creation, planning for retirement, or seeking financial security, exploring the best investment options can cover the way to achieving your financial goals. In this article, we will present an overview of the top 5 investment plans in India. We will delve into the key features, potential returns, and risk factors associated with each investment option. By gaining insights into these top investment plans, you can make informed decisions and set yourself on the path to financial success.
Importance of Investment Plans in India
Investment plans have gained significant importance in India due to various reasons
- Financial Security: Investment plans provide a dual benefit of financial protection and wealth accumulation. They offer a life cover that ensures the financial security of the insured's family in case of their untimely demise. Additionally, these plans allow individuals to invest their premiums in various investment instruments to generate returns over time.
- Long-Term Savings: Investment plans encourage individuals to save systematically for the long term. By committing to regular premium payments, policyholders develop a disciplined savings habit, which can be beneficial for achieving their financial goals such as buying a house, funding their child's education, or planning for retirement.
- Wealth Creation: With investment plans, individuals can potentially grow their wealth over time. These plans offer different investment options to policyholders to participate in the growth potential of the financial markets. This can help them accumulate a significant corpus over the policy tenure.
- Tax Benefits: Investment plans in India also offer tax advantages. The premiums paid towards these plans are eligible for tax deductions under Section 80C of the Income Tax Act, of 1961. Additionally, the maturity proceeds and death benefits received from these plans are generally tax-exempt under Section 10(10D) of the Income Tax Act.
- Retirement Planning: Investment plans have become indispensable for retirement planning. Individuals need to build a retirement corpus that can sustain them financially during their golden years. Investment options like pension plans, mutual funds, and systematic investment plans (SIPs) provide a means to accumulate wealth and secure a comfortable retirement.
Top 5 Investment Plan Options to Build Wealth and Financial Security
When it comes to building wealth and financial security, there are various investment plan options available. The suitability of these options may depend on your risk tolerance and investment goals. Here are five investment plan options that are commonly considered:
- Unit-Linked Insurance Plans (ULIPs)
- Endowment Plans
- Money Back Plans
- Term Insurance with Return of Premium (TROP)
- Retirement Plans
Unit-Linked Insurance Plans (ULIPs): ULIPs are insurance-cum-investment plans that offer both life insurance coverage and investment opportunities. They allow policyholders to invest in various funds based on their risk appetite. ULIPs offer flexibility in premium payment, policy terms, and the choice of funds. They provide a death benefit in case of the policyholder's demise during the policy term and may offer maturity benefits if the policyholder survives till maturity.
Endowment Plans: Endowment plans are life insurance policies that offer both insurance coverage and savings. They provide a lump sum amount as a maturity benefit if the policyholder survives the policy term or a death benefit to the nominee in case of the policyholder's demise during the term. These plans typically have a fixed premium payment term and policy term.
Money Back Plans: Money-back plans are life insurance policies that provide regular payouts or survival benefits at specific intervals during the policy term. They offer both insurance coverage and liquidity through periodic cash flows.
Term Insurance with Return of Premium (TROP): TROP is a type of term insurance policy that provides life insurance coverage for a specified term and returns the premiums paid if the policyholder survives till the end of the term. If the policyholder dies during the term, the nominee receives the death benefit.
Retirement Plans: Retirement plans offered by life insurance companies help individuals accumulate funds for their retirement years. These plans provide regular income or a lump sum amount at retirement, ensuring financial security during non-earning years.
Top 5 Best Investment Plans in India
The top 5 best investment plans in India are:
1. HDFC Life click2 invest Plan
HDFC Life click2 invest ULIP is to cover your family Makes single payments or limited period payments for 5, 7, or 10 years or equal to the policy term and Makes a partial withdrawal from funds.
Eligibility:
- Entry Age: 30 days to 65 years
- Maximum age at Maturity: 18 to 75years
- Premium Mode: Annual, Semi-annual, Quarterly
- Policy Term: 5 to 20 years
- Premium Payment Term: 5, 7, 10, and 20 years.
|
Features:
- Partial withdrawal
- Make single payments or limited payments
- Choose from
11 fund options
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Benefits:
- Maturity Benefit
- Tax Benefit
- Death Benefit
- Survival Benefits
|
2. PNB MetLife Guaranteed Future Plan
This plan is created to enable you systematically save and protect yourself against unforeseen and unfortunate life events and also offers you guaranteed returns.
Eligibility:
- Entry Age: 30 days
- Maturity Age: 80 years
- Policy Term: 15 to 30 years
- Sum Assured: Rs. 2 lakhs p.a
- Premium Payment Period: single/Yearly, half-yearly, and Monthly.
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Features:
- Safeguard against uncertainties
- Guaranteed income
- Premium payment and payout flexibility
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Benefits:
- Guaranteed Benefits
- Maturity Benefit
- Tax Benefits
- Loyalty Benefits
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3. Canara HSBC OBC Guaranteed Savings Plan
Canara HSBC OBC Guaranteed Savings Plan provides Guaranteed benefits payable on maturity, provided all due premiums have been paid.
Eligibility:
- Entry Age: Min 0 years to Max 60 years
- Maturity Age: 18 years to 75 years
- Policy Term: 10,12,15,20
- Sum Assured: Based on Plan
- Premium Payment Period: Monthly, Quarterly, Half-Yearly, Yearly
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Features:
- Flexibility to choose a payment term suitable for you
- Customize your savings
- Pay premium only for a limited period
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Benefits:
- Guaranteed Benefits
- Maturity Benefit
- Tax Benefits
- Loyalty Benefits
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4. Bajaj Allianz Future Gain Plan
Bajaj Allianz’s fortune gain plan benefits you with a single premium product that helps you enter and stay invested in market-linked funds for the long-term, comes with low allocation charges ensuring that up to 100% premium is allocated towards investment, and offers a life cover.
Eligibility:
- Entry Age: 18 years
- Maturity Age: 70 years
- Sum Assured: 1.25, 1.1 times single premium
- Policy term: 7, 30 years
- Premium Payment Term: Single
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Features:
- Partial withdrawal
- Investment options and funds
- Loyalty Additions
- Option to pay Top-up to the extent
- Option to decrease Sum Assured
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Benefits:
- Maturity Benefit
- Tax Benefit
- Death Benefit
- Survival Benefits
- Additional Rider Benefits
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5. ICICI Prudential Guaranteed Income for Tomorrow Plan
ICICI Prudential Guaranteed Income for Tomorrow Plan protects and savings-oriented term life insurance plan with benefits to help you achieve your life goals.
Eligibility:
- Entry Age: 18 years
- Sum Assured: 2 Lacs
- Maximum age at Maturity: 18 to 75years
- Premium Mode: Annual, Semi-Annual, Quarterly, Monthly
- Policy Term: 5 to 20 years
- Premium Payment Term: 5 to 12 years
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Features:
- Option to receive guaranteed income from 2nd year onwards
- Life Insurance Cover for the financial security of your family
- Option of taking a loan against the policy
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Benefits:
- Maturity Benefit
- Tax Benefits
- Loyalty Benefits
- Guaranteed Benefits
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How to Buy Best Investment Plan Online?
Buying the best investment plan online can be a convenient and efficient process. It will save you money and time. Here are the steps to purchase an investment plan online at PolicyBachat:
- Visit the official website of the PolicyBachat
- Fill in the requested details such as name, mobile number, email address
- Next select your location
- Select the desired options by comparing different premium quotes.
- Select the suitable plan with the premium quote
- Pay for your Policy by using online payment methods.
Factors to Consider When Choosing an Investment Plan
When choosing an investment plan, there are several important factors to consider. Here are some key factors that can help guide your decision:
- Financial Goals: Determine your financial goals and objectives. Are you looking for long-term savings, protection for your family, retirement planning, or a combination of these? Clarifying your goals will help you choose a plan that aligns with your needs.
- Coverage Amount: Evaluate the amount of coverage you need to protect your loved ones. Investment plans come with a death benefit that provides financial support to beneficiaries upon the insured's death. Consider factors such as outstanding debts, income replacement, education expenses, and future needs.
- Premiums: Understand the premium structure of the plan. Investment plan premiums can be paid as a lump sum or in regular instalments. Evaluate the affordability of the premiums over the duration of the policy and ensure they fit within your budget.
- Flexibility and Customization: Look for plans that offer flexibility and customization options. Some policies allow you to adjust coverage amounts, change premium payment frequency, and access cash value when needed. These features can adapt to your changing financial circumstances.
- Investment Options: If the policy includes an investment component, evaluate the available investment options. Understand the investment strategies, asset allocation, historical performance, and associated fees. Consider your risk tolerance and investment preferences when choosing among different options.
- Company Reputation: Research the reputation and financial strength of the insurance company offering the plan. Ensure they have a solid track record of timely claim settlements and good customer service.
- Policy Terms and Conditions: Read the policy documents carefully, including terms, conditions, and exclusions. Understand any limitations or restrictions associated with the plan. Pay attention to surrender charges, policy loan provisions, and any penalties for early termination.
Premium Table of Top 5 Investment Plans in India
| Company |
Plan |
Premium (Annual) |
|
| HDFC Life Insurance |
Click2 invest Plan |
48000/- |
Buy |
| PNB MetLife Insurance |
Guaranteed Future Plan |
46000/- |
Buy |
| Canara HSBC OBC Life Insurance |
Guaranteed Savings Plan |
45000/- |
Buy |
| Bajaj Allianz Life Insurance |
Future Gain Plan |
50000/- |
Buy |
| ICICI Prudential Life Insurance |
Guaranteed Income For Tomorrow Plan |
51000/- |
Buy |
The above-given premiums are just for illustration purposes only. Please compare quotes to get the exact value of the premium.
Conclusion
Investment plans in India present a compelling opportunity for individuals seeking financial security and wealth creation. Life insurance policies not only protect against unforeseen events but also offer avenues for investment and wealth accumulation. We have explored some of the top investment plans available in India, highlighting their features, benefits, and considerations.
Investors need to assess their financial goals, risk appetite, and investment horizon before choosing a life insurance investment plan in India. Comparing investment plan quotes online can provide valuable insights and guidance in selecting the most suitable option.