We all do investments, be it the investment of efforts, time or money in order to actualize some desired goal or fruit. Speaking solely in financial terms, for the growth of money and to earn passive income we must create some assets and churn them in such a way that they yield income. There are so many things in which you can invest your surplus money ranging from real estate, bullion, stocks, commodities, debt instruments, futures, forwards, options, swaps, money market instruments to life insurance products.
While investment planning you must contact your financial advisor to review your investment portfolio and help it structure in such a way as to minimize risk by spreading it over diverse investments and maximizing growth. An ideal portfolio consists of an intelligent mix of short-term and long-term investments. Financial planning is a highly specialized line and one needs educated steps to optimize one’s investment goals. One should not compare two investment products only on the basis of returns; there can be many other important factors that add the utility of an investment product such as liquidity, death benefit, a flexibility of fund etc.
In the world of online information is so freely available and various investment options can be studied and compared. Life insurance plans offer good investment opportunities as well. They not only intend to grow our hard earned money they also protect the family from the financial implications arising from the death of the policyholder. The range of investment insurance products includes endowments, ULIPS, pension plans and also child insurance plans, which specifically designed to fortify the future of child of the policyholder.
You must sit with your life insurance consultant and ask what all investment products are suited for your life stage (single, married, with children), risk appetite, income, and responsibilities etc. Based on such consultation you should compare investment plans of various life insurers to check out the specific unique features. Your investments should match your needs. There is no point in investing in a product offering returns that would be sterilized in the face of inflation.
While comparing investment policies you must give due importance to the reputation of the company from which you buy the plan. Invest your faith in companies that are old and aware of the Indian market. They must have good claim settlement ratios and offer higher rates of return than peers. Invite as many quotes as you can to crack the best deal.
There are over 25 life insurance companies and comparing plans of each company might seem a tedious task. Good news is that you can compare plans of numerous companies on a single website dedicated to providing unbiased and free of cost plan comparison. Such companies are highly regulated by IRDA and you will be benefitted to compare first and buy.
Many of the investment plans are market-linked and thus have an element of risk. It is advisable to read the policy document very carefully before investing.