Tag Archive | "Investment Insurance"

Protect your Life by Choosing the Best Investment Plan

  • Easypolicy
  • 10 Mar 2015

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.

Which One to Choose – Endowment or Money Back?

  • Easypolicy
  • 17 Oct 2014

Insurance companies have tailored insurance policies in different formats in an effort to customize their offerings to the needs of large variety of customers. Endowment insurance plan and money-back insurance plans are among the more popular formats in which insurance policies are available. Many potential customers who look to buy an insurance cover/investment plan find it difficult to decide the best insurance option for them and how the various options differ.

Essentially, the differences are not as difficult to comprehend as they appear. Before we dwell into the differences, let us first know the similarities between the two. Both endowment plans and money pack insurance plans are investment insurance product. They guarantee a return on the investment you make. In case you die during the Term of the Policy they offer you the sum Assured as death benefit. If you continue to live throughout the policy term, you will be provided the Sum Assured as Maturity benefit.

The difference in the two investment plans essentially arises from the way they distribute back the sum assured to the insured. An Endowment Plan would pay the entire sum assured only after the term of the policy is over. A money back plan instead would distribute the sum assured in parts or installments. The payments are staggered over the policy term. Money back plans are ideal for those people who are looking for regular flow of funds to tide over various expenses like child education, marriage etc.  

With Little Effort You Can Save a Big Amount

  • Easypolicy
  • 16 Oct 2014

A common man has limited earnings and if you ask him how he plans to save for his retirement or children’s education he would probably have no answer. He may realize that Inflation is hitting his savings hard and the amount he would need for securing his child’s future is monstrous. In fact, the corpus one needs to accumulate appears so big that most people shy away from making a beginning to achieve this target.

But I would say no amount or target is too big if systematic efforts are made to achieve the same. You won’t even need to stretch yourself tremendously in either earning or saving. It just requires you to follow these two simple steps and you would find your small savings has transformed into a corpus which you never dreamt of accumulating in your life time.

1. Start investing early even if the amount is too little

The most important virtue of a successful investor is that he starts investing from the very first day he starts earning. You need to be a visionary to understand how little savings transform into large corpus over time. There are two important benefits of starting early when it comes to investing.

The first obvious benefit being that the money you save earns compounded return over a longer duration and hence the savings continue to multiply with time.

The other benefit being that you have the opportunity to opt for investment vehicles which promise significantly higher returns when held for a longer duration. Take the case of equities, if you hold them over a long enough time horizon, you can look forward to earn the most lucrative returns.

So, your money earns a higher return for a much longer duration and this works wonder for you.

2. Invest consistently

The benefit of investing early can only be reaped if it is done consistently over time. The best way to ensure that you start investment early, smartly and consistently is to opt for an investment plan or life insurance policy. Life insurance Policy combines the benefit of insurance and investment. So, you not only stand to gain from the investment but the future of your Dependants is secured on account of the insurance cover. Buying such an Investment Insurance Plan will not only enforce you to invest systematically but also ensure that your money is invested in the most rewarding investment vehicles and the investment Risk is minimized.

Apart from earning attractive returns on your investment, you also stand to gain from the tax savings that most life insurance plan confers.