List of Different Types of Investment Plans

At different stages of life, one needs money. An individual's need to build a corpus. Whether the child needs education, marriage or retirement savings. When you start looking for different ways to build funds, you tend to look at investment plans where your money grows while you sit back. There is no simple solution to this because of the number of investment avenues.

What are Investment Plans?

Investment plan is the easiest way to build wealth over time. Life insurance companies offer a variety of investment plan options. These are the products of wealth creation for the future. It requires the planning and understanding of the various options available.

Here are a few reasons why opting for investment options is a healthier option.

• Helps you achieve your goals for life in the long run. For example: a happy retirement, expansion of your business, ownership of your dream home, etc.
• Ensures a steady income flow during retirement.
• Allows the policyholder to save more money by granting tax savings benefits.
• Helps the investor to combat both the fear of inflation and market volatility.
• Achieve your life goals by helping to create a substantial wealth proportion.

Types of Investment Plans

There are a lot of investment plans offered by different insurance companies but these 4 are the main types of investment plans

• Unit Linked Investment Plan (ULIP)

  Unit Linked Insurance Plan (ULIP) provides investment and life insurance benefits under a single roof. By employing the ULIP policy, a policyholder can financially secure his family as well as ensure his or her participation in the equity markets. In addition, these dual benefits help the investor to realise his or her life goals and generate wealth in the long run.

You may also like to read:- Which Investment Plan Gives You the Best Returns?

• Endowment Plan

  The Endowment Plan is a traditional insurance product with investment opportunities. It's a combination of coverage and investment. Funds shall not be linked to the market. The premiums you pay throughout the period are divided into two parts: part of the premium is used as an investment and then another part of the premiums is maintained as a risk cover On maturity, the returns are guaranteed with a profit, albeit minimal. In the event that an investor passes away before his or her maturity, the nominee shall receive the sum assured.

• Savings Plan

  Money-Back Plans or Savings Plans are preferred by investors seeking guaranteed returns on their investment. When you purchase a savings plan, you are eligible to receive a guaranteed amount when your policy has matured. In simple terms, the benefits shall be paid at the time of maturity and the amount assured shall be paid along with the bonuses to the policyholders in accordance with the terms of the product.

• Retirement Plan

  In order to provide financial security for your life during the retirement phase, insurance companies have introduced ULIP Pension Plans. Investment in these retirement investment plans not only helps you earn income, but also guarantees long-term benefits depending on the type of product chosen.

Also Read

Best Investment Options For People With Regular Income Sources

Conclusion

To sum up, the above investment options in India offer multiple benefits to its policyholder. To land with the most appropriate and affordable investment plan, consider the needs of your entire family and assess your budget. Be smart with your investment decisions as they will help you create a huge corpus to fulfil your family's life goals with ease.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.