Choosing the right investment plan with life insurance
There are two types of life insurance investment plans that you can choose from
- Endowment plan : In this type of life investment plan, you receive a lump sum amount at maturity or a part of it annually. Since the plan is low-risk, you don’t get high returns but offers life coverage.
- Unit-Linked Insurance Plans (ULIPs): This life investment plan offers returns based on market performance, so risks related to it are high. You get to know the returns you are getting using the Net Asset Value of your investment. There is no guaranteed return but insurance companies give an estimate. You receive life coverage.
Benefits of a life investment plan
It is a two-in-one approach to life coverage and increasing your wealth. Here are some benefits of the plan :
- It offers goal-based planning options for purchasing a car, house, children’s education, or retirement security.
- You qualify for tax refunds under section 80C of Tax Act if you pay the premium regularly. the maturity payment you receive is exempted from tax under section 10(10D) of the Tax Act.
- It provides financial support and protection to your family after your demise.
Wondering where you will find the best life investment plan for achieving your financial goals? Head over to Insurance Efficient today and use the life insurance comparer to compare different plans and purchase the one you like the most.
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