Investment plans are also known as Life Insurance plans. Investment plans give options to an individual for investing in different options and saving for the future.
Investment plans help you not only to grow money but also shield you from the risks of the instabilities of the market and provide maximum returns. Banks today provide the best and easy investment plans for your secure future. Scroll further to know all the details.
Investment Plan Features
- You can choose your own intervals after which you will get the benefits of this plan in instalments, be it yearly, half-yearly, quarterly, or monthly.
- Helps secure the future of the insured individual’s family in case of unfortunate events such as the demise of the insured or the inability to earn an income.
- It helps you get maximum returns and savings for a particular goal, be it for a wedding, a car purchase, or any other important event of your life.
- These plans can be used by you as collateral to avail of various loans from banks, and this will help you get secured loans at attractive interest rates.
- These plans help you get various tax benefits such as tax – exemptions and tax – free income under various sections such as Section 80C and Section 10(10D) of the Income Tax Act, 1961.
- Just putting the money in your bank accounts is like a sheer wastage of opportunity. These plans are the best way to manage and grow your funds.
Investment Plan: Purpose
- Security– Security is the primary objective of why people avail of these plans. They offer financial security against the risks of unstable markets and unfortunate events of life such as demise, critical illness, or inability to earn.
- Tax saving – These plans are the best way to get not only a tax exemption but also a way to earn tax-free income. To avail of the maximum benefits and plan your investment properly, it is advisable to go for an investment plan in the early quarters of a financial year.
- Fund management and growth – Another objective is your fund management and growth of your income. However, for more benefits, you will have to give up on safety. More returns bring along more risk.
Investment Plan Types
There are four types of investment plans:
- Unit Linked Investment Plans (ULIP)– Unit linked investment plans offer both financial security and life coverage. In a ULIP, the insurance companies invest a part of your premium payment in shares and bonds, and the returns are used to provide insurance cover. When compared to mutual funds, ULIPs are safer but offer lesser returns.
The NULIPs or the 4G ULIPs, are the new age ULIPS which are more flexible and require a lesser cost. They also offer more tax exemption features
There are many benefits when it comes to ULIPs:
- Life insurance – Apart from growing your funds, the ULIP helps serve another function of providing you a life insurance cover, making your future secure.
- ULIPs have a lower risk factor and are usually safe.
- ULIPs have the option to be withdrawn whenever required, and this is especially beneficial when you need liquid funds in cases of emergency.
- These provide you with many income tax benefits.
- They offer you flexibility in your choice of portfolio. You can switch the portfolio according to your risk-taking appetite and your knowledge about the market.
- Fund management and saving for long term goals is, of course, the main reason why ULIPs are beneficial for you.
|Investment plans||entry age||maturity age||policy term||fund options|
|Aegon Ilnvest||7 to 55 years||70 years||10/15/20/25 years||5|
|Bajaj Future Gain||1 to 60 years||70 years||10 to 25 years||7|
|Bharti AXA eFtutre Invest||18 to 60 years||70 years||10 years||6|
|Bajaj Allianz Fortune Gain||1 to 63 years||70 years||7 to 30 years||7|
- Endowment Plans – endowment plans are the safest type of plans and are usually beneficial for investors who want to keep their funds secure and do not expect high returns.
|Investment plans||entry age||maturity age||policy term||fund options|
|Birla Sun Life Vision Endowment Plan||1 to 55 years||–||20 years||–|
|Edelweiss Tokio Guaranteed Income Plan||3 to 55 years||65 years||15 years||–|
|India First Maha Jeevan Plan||5 to 55 years||70 years||25 years||–|
|Kotak Assure Income Accelerator Plan||0 to 60 years||85 years||15/20/30 years||–|
- Life insurance investment– A life insurance, like a ULIP, also offers the dual advantage of a life insurance cover as well as saving and growing your funds. These are associated with long term and short term goals of your life.
- Guaranteed Return plan – These offer guaranteed amounts at the end of the term of a particular plan, which include highest NAV, capital guarantee and maturity guarantee.
Investment Plan Classification:
Investment plans can be classified on the basis of three factors:
- Guarantee– The plans that are guaranteed are suitable for those who are looking for stable growth options and do not demand high returns. However, non-guaranteed plans are not stable. They offer higher returns but are prone to the risks of market instability. These investments can range from equity growth stocks, conservation funds, money market instruments, and bank deposits.
- Premium – On the basis of the premium, the plans can be divided into single and regular premium plans. Single premium plans require lesser paperwork and lesser administrative charges, but still cost more. Regular premium plans are fit for those people who do not have much savings.
- Life stage – The life-stage and non-life stage plans are allocated according to the age of the investor. Young investors have more risk-taking appetite and so they are given more exposure to the risks of the stock market, while the old investors are offered more safe investments with gradual growth and a focus on the conservation of their financial corpus.
Investment Plan How to Apply
To avail of the best deals available in 2020, all you have to do is visit the Dialabank website and click on the life insurance option on the menu on the homepage. Click on the Investment Plan link and fill-up the form. Our team of experts will soon give you a call on your provided number and assist you at every step of the way. In case of any queries, you can contact us instead.
Investment Plan Tips
These are some of the aspects you should always consider before availing of an investment plan:
- Your income – You should always opt for a plan that offers you the same amount of benefits as your income, so that there is no significant material change in your life. If your income is more, it is better for you to invest in high-yielding plans so that in case you lose your source of income, the plan will help you counter your financial crunch.
- The income of your family members – In case your immediate family members earn a considerable part of the total family income, then you can opt for an investment plan with lower risks and gradual growth because even if you lose your income, your family members will be able to bear the brunt of most of the expenses.
- Your loans – In case you have any loans and debts currently under your name, it is best that you opt for an investment plan which helps you clear all the debts easily, and avail of the maximum benefits of these plans.
- Your expenses – Again, an important aspect to be considered for availing of an investment plan is the number of expenses you make regularly. If you have a large number of regular expenses, then it is best if you make an investment in a high-yielding plan. You should consider our future expected expenses too.
- Premium calculation – This is very important for the proper management of your investment plans. These help you compare all the plans and select the one which is cost-efficient, less risk-prone and more yielding to help you maintain a good portfolio.
Investment Plan Features to Compare
Here are some of the things that you should compare to choosing the best investment plan:
- The cover and flexibility – obviously, the first aspect to be considered when comparing investment plans is the cover. While most of the banks offer the same cover more or less, the focus should be on both high – yield and practicality. Also, you should always choose a plan which offers cover changing flexibility according to the investor as the needs of an individual change with age.
- The add-ones – Apart from the cover, the add-ones are also something that has to be considered. The add-ons are the additional facilities that an investor can avail of by paying a small fee, to cover whatever aspects he needs.
- Premium and its flexibility– The premium should be considered, so as to know how much benefits an investor can avail of with the same amount of premium in different banks. The premiums are almost the same in all the banks, but the only difference is whether the banks take it a lump sum or spread it over the years. Also important is the flexibility to change the premium by the investor, according to his paying capacity. A good bank will always offer premium flexibility and top-ups.
- Returns – A good plan will always offer you high returns without a lot of risks.
- Pay-out flexibility – The investor should always consider if his plan offers him pay-out flexibility according to his needs. e.g. we might need a lump sum payout in cases of emergencies, on the other hand when it comes to a child life cover, we would prefer instalments.
- Tax benefits – Of course, we would always prefer the plan which offers us maximum tax benefits and exemptions, and a tax-free income.
Investment Plan FAQs
Why should I go for investment plans?
If you just keep your income in the bank accounts, you won’t be able to get much profits. Investment plans serve many functions such as help you manage, grow, and save your funds for important events of your life and provide you with insurance.
How do I apply for investment plans through Dialabank?
To apply through Dialabank, you can visit the nearest Dialabank branch or visit our website and avail of the best offers through a hassle-free and quick process.
Which plan is suitable for me?
In case you are looking for a higher yield, you can invest in plans such as mutual funds that expose you to the stock market and are risky. However, if you are looking for a lower risk, then you should invest in bonds which get you a gradual growth on your financial corpus.
Should I buy gold as an investment?
Gold is not a good investment option as it is not safe. But it is a good store of wealth.
Are there any tips for beginners in investing?
If you are a beginner, then first and foremost it is important for you to get your finances in order and set your goals so that you can choose our plan accordingly. Also, you need to understand your risk-taking appetite properly. After that compare and choose the investment plan that is the best fit for you. Take the help of an advisor if you need to.