Investment insurance: A two way beneficial policy for financial security

To enjoy life you need to nest your money well. For this people emphasis on investing in various investment tools such as gold, silver, mutual funds, debt, securities & bonds, stocks etc. However, in modern days one of the best ways to enhance your funds in systematic pattern is through the Investment Insurance policy. These plans proves a two way beneficial for policyholder as it helps to protect their family with suitable life cover along with an opportunity to grow their money through market based funds. So, whether it’s a long term goal or taking care of your short term responsibilities, Investment Plans are suitable for both kinds of requirements.

Investment insurance policy is a hassle-free unit linked plan, wherein you invest once and reap the benefits throughout the policy term. However, it’s like an art to produce the desire result. For this you need to work around with financial expert and strategize on fund switching and build holding capacity in particular funds. Thus, when coupled with easy liquidity options and sound investment strategies it can suit your risk appetite, this plan ensures that your investments are evenly spread across risk and debt funds to provide the desired result.

You perceive the convenience of one time investment. You pay premium once with no obligation of future payments. With Single premium you enjoy the benefits of investment and insurance throughout the policy period. It is advisable to never opt for shorter period policy as these plans are based on market movements. Pool your money between 5-10 years and then take a decision on selling off your funds.

 

Few investment insurance policies provide loyalty addition that helps your single premium earn extra amount for you and add to the returns. A percentage of the average fund value gets added to your account after specific period. The rates will be dependent on the single premium bands and Policy Term. The plan offers three investment strategies to choose from that will match your risk profile, investment objective and comfort in managing your portfolios. You can work with the available strategies as per your risk taking capacity. For a self managed person risk based proves beneficial as they are clever enough to take a concrete decision, For elder people debt based funds proves beneficial for securing their retired future and some can consult an financial expert and invest in balanced funds where money can be evenly moved across the funds when required.

Investment insurance policy let you avail tax benefits under Section 80C and Section 10 (10D) of Income Tax Act, 1961 subject to conditions as specified in those sections. However, investment insurance plan are different from the traditional insurance products and are subject to the risk factors. The premium paid in such policies are subject to investment risks associated with capital markets and the NAVs of the units -based on the performance of fund and factors influencing the capital market. It is advisable take a calculative decision with financial experts opinion for better results. Never take decision with emotional frame of mind. For better results during younger days work on risk based funds and once you earn returns move them towards debt based funds. When considering investment plans, investors should look for the aspect of ‘With profit’ plans.