Basically an investment plan is a financial product that gives you a chance to save your money and future as well. The benefit of choosing the life insurance plan is that it can create wealth for the future and gives you life coverage also. Life insurance plans come in two types, one is based on Unit Linked Plans (ULIPs) which is based on market performance and the other one is endowment plans and this plan offers a lump sum amount at the end of the policy term. These types of schemes and investment plans cover life coverage of you and your family.
Main Objective of Investment Plans
Every investor has different objectives so their plans are. Some of the top most popular and common investment plans are:
Everyone is looking for safety while investing somewhere or you can say it’s one of the prime objectives for everyone. There are numerous investment plans available in the form of ULIP that offers you 100% ensured bring probability back.
After security, comes compensation. The most secure investment plans are the ones that are probably going to have a lower yield or rate of income return. Investors take risks so that they can get better results and earn more. When the returns increase, the peril will automatically increase.
Many of us want to save their money from tax and this is the only reason people choose investment plans. It’s a strategy to save your hard-earned money from tax. According to the income tax act 1961, the investor can get tax cuts under the section of 80C, 10(10D) and it is totally legal.
Top Best Benefits of Investment Plans
There are many types of investment plans and every saving scheme offers different types of benefits according to consumer needs.
Protect Your Family
Investment returns give you double benefits of life cover and also return to you and your family. Which means anything happens to the guarantee, his/her family will get the benefit. These profits help to make sure about the family’s needs and financial objectives if the guaranteed party can’t win a living or on the appalling occasion of his death.
If you want to buy a new car, paying for children’s education fee or is planning for marriage, this goal-based investment plan is the perfect option for you. It’s a retirement plan, if the insured individual does not want to know about the unit market, then linked plans offer a safe approach. The ULIP plans offer a safe yet alternative opportunity to invest your money. Check out the past calculations and profits in the last few years.
Build Fund Reservoir
Build Fund Reservoir is one of the investment plans with coverage cum investments. It will let one save a lot in this lockdown period. Regardless of whether the investors need to purchase their first house in 5 years while or spare enough to purchase a second home in the next five years, their saving plan feature can help to achieve their objectives.
The premiums paid under these investment plans fit the qualify for deduction under 80C of the Income Tax Act, 1961 up to applicable limits. This implies that the investor isn’t taxed on the funds that he/she invests in these saving schemes and furthermore the benefit is decreased by the investing fund. The exception however is limited to the total exception limit under section 80C and can’t surpass that statutory limit.