Categorized | Investment Insurance

Protect your Life by Choosing the Best Investment Plan

From a financial planning perspective, when we gaze into the future there are two things that we need to plan for – predictable and unpredictable events. Predictable events are those which you know for sure are going to arise and at what time and stage in your life. These include one-time events like buying a house, vehicle and children education. Unpredictable events like death or diseases or Accident leading to permanent disability cannot be predicted. If such an unpredictable event happens untimely the liability associated with such events would be huge and can be devastating for the family.

To ensure the future of the family is safe and protected financially it requires that individuals buy an investment cum insurance plan. The investment will ensure that your savings grow large enough so that you are able to tide expenses related to predictable events while the insurance will ensure that all predictable expenses are met even if the Insured does not live long enough to make the desired savings.

What is a best investment plan for you?

The best investment plan should provide you the dual benefit of investment and insurance. But choosing any Investment Insurance Plan may not serve the purpose. It is essential that you choose a plan that is best for you. The best investment plan would ensure that your savings accumulate into a corpus that is large enough for you to comfortably meet the liability related to predictable events and the insurance is big enough to help your family sail over the liability associated with the uncertainties of life like death and disability. So before you draw yourself into choosing an investment plan make a list of future expenses and the corpus you would need to meet these expenses.

The investment plans would offer you various options with regard to where to channel your savings. You can either choose to invest all your savings into equity or debt and even a mix of the two. The choice entirely depends on your personal Risk appetite and the horizon of investment. If the horizon of investment is pretty long it makes sense to channel a large proportion of your savings into equity. As Maturity approaches you can gradually switch to a fund that invests predominantly into debt to avoid investment risk.
 
Last but not the least, make sure that you do not overpay for the plan you buy. Hence once you have decided on what you expect from the plan do an online comparison to shortlist an investment plan that asks for the lowest Premium rates.