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What is Investment Insurance?

Investment is the new trend wave that people followed heavily during the covid time. Everyone gets aware of the potential ways by which they can securely grow it as only banking investment is outdated and the dropping interest rates seem irrelevant to even invest there. Everyone wants the best financial results out of their income without any risk factors associated with it. Investing their money to meet the high ends and future financial stability is the sole reason people opt for investment plans. Irrespective of the event or phase, well developed and thoroughly structured investment plans work like a saviour. It not only helps you to create handsome wealth for you and your family but also provides substantial aggregation in times of need.

Eligibility for investment plans

Every individual who is above 18 years old is eligible for investing in investment plans whether they are salaried/non-salaried, self-employed or other professions or state/central government employees.

Documents required:

Address Proof- Original and an Attested Photo Copy.
Photo Id Proof-Original and an Attested Photo Copy.
Aadhar Card-Original and an Attested Photo Copy.
Bank Passbook.
Pan Card - Original and an Attested Photo Copy.
Cancelled cheque for initial premium payment against investment.

Features of Investment plan

Investment plans are the smartest choice one can make for the steady growth of their finances. The captivating part of the investment plans are the returns people get over the term of investments.

1. SIP- Systematic Investment plans is a type of investment mode in mutual funds where investors invest a regular amount in it to get the combined benefits later on.
2. Affordable Investment- Pocket friendly investment plans include small premiums or investment after small and periodic time interval. Just like mutual funds where investors invest monthly, weekly or fortnightly as per their convenience to ultimately get a hefty returns.
3. Disciplined investment- self investment after every certain time period is not humanly possible to get such dedication and discipline towards savings. That’s where investment plans come into picture which helps to maintain the desired discipline for small investment periodically to also reduce the burden of lump sum expenditure.
4. Feasibility- buying investment plans has become an easy deal with both online and offline modes. Within a few clicks, one can get an investment policy. It is a truly quick and people-friendly process that makes the whole buying process quick and hassle-free.
5. Security - trouble of forgetting to pay the investment amount periodically can be subdued with online linking of your investment portfolio to your bank account which enables easy, quick and uninterrupted automatic deduction from the banks. Generally, you need to be KYC compliant to start investing which makes the whole process safe, quick and secure.
6. Compound interest- as known from our academic days that compound interest gives a larger sum assured that's what investment policies ensure that even after investing a smaller amount the investor can get a much bigger sum insured at the end with the calculations of compounding the interest.
7. Investment calculator-getting a surety of what your investment is going to turn into is the immediate trust-building sector for investing. For this investment planning, premium calculators help you to get the idea of the aggregated amount the investor will get at the time of maturity so that they have the leverage to plan their life accordingly.
8. Rupee-cost average in SIPs- investments are always directly affected by market positioning and marketing is highly volatile due to many potential reasons that impact on the global level. Since the investment in SIPs are done in intervals, add more units when the market is in the downward phase so that your total investment gets averaged as per the current market value and later on when the market heads upward, the investment will be in profits.

Benefits of investment plans

Building funds is never an easy task but with the right investment plans, it becomes an easy deal to meet the hefty expenditure life demands at certain stages of your life. From inflation, retirement to all the substantial expenses life demands on various life stages.
Generating wealth- Accumulating wealth cannot be imagined without a solid investment plan. You cannot simply just depend on your savings to meet the exceptional life expenditure your life demands. Investment plans ensure you a well-structured root to follow and accumulate wealth from the investments in equity/debt funds over a time period.
Tax saving- investment plans are all covered under section 80c of the Indian tax act. Therefore the premiums and returns both are exempted from tax by the Indian government so these investment plans help to create a sufficient amount of funds over a longer duration of time.
Financial security - not all investment plans ensure death risk coverage but a life insurance policy provides this option to the investors which take care of their financial stability for their survival or after their death as well. If the investor survives then they enjoy a huge amount of returns. In case of the demise of the investor, these returns will act as the safety net for their family. They will be able to survive on the finances and would also be able to clear the liabilities ,if any. This money ensures to provide them ample time and finance to stand on their own again.
Retirement planning- at a certain age after an individual starts earning, they start thinking about having a solid retirement plan in order to have a simple and easy life after their retirement in old age. So the returns from these investment plans create a sufficient amount of funds for their retirement to ensure their financial independence or even in the later years of their life, funds are needed to fulfill the needs of growing children and other family members.

Types of investment plans

ULIP- Unit length insurance plan

This is a type of saving plan in which the premium paid by the investor is halfly used as a premium and the other half of it is used to invest in the market in the forms of bonds, equity funds, market shares etc. The investor can evaluate the total investment of its funds. At the time of maturity, if the investor survives then he will get the maturity amount and if he dies then the nominee will get the sum assured.

Endowment plan

A combination of coverage investment premium plan in which the premium paid is halfly used as premium and the other half is used as a risk cover. This plan allows you to get lump sum amount after a specific period of time which generally ranges from 10- 20 years to upto a certain age. The other half of the premium which is used as a risk covered allows you a benefit to get the lump sum amount in case of critical illness.

Mutual funds

This is a type of investment in which a professional finance manager collect money from various investors irrespective of the amount they want to invest. Collectively they arrange a large number of funds to invest in bonds, stocks etc. Funds allow you as an investor an opportunity to invest even a little amount of Rs 1000 per month that is totally dependent on your expenditure capacity and risk taking ability as per the volatility of the market.

Equities

Equity is a type of security which is generally bought from the stock market. It provides an ownership in the company when we purchase certain stocks of an organisation over which we get dividends at the time of financial assessments and if these stocks are kept for a longer duration then they into massive profitable returns as compared to other types of investment plans. Since it is kind of a long term investment and depends on the working of an organisation so it is highly risked investment that requires thorough research and analysis before buying any stocks of an organisation.

Bonds

These are the investment generally known as fixed income instruments because they allow to earn fixed interest payments throughout the life period of the bond and at the maturity, the investor will get the full amount they invested in the bonds. These are generally issued by organisations as well as the government to generate a pool of funds. Government issued bonds usually involves low risk and fair returns as compared to the private ones.

Bank deposits

Is a basic and known by all type of investment in which people deposit their funds in the bank in the form of RD, FD or generally in the bank accounts to get interest on their money over period of time. The extra income or the interest offered by banks are low but stable as compared to other organisations that provide different types of investment plans.

Tips to plan your funds before you invest

Financial planning is the first and the foremost thing one should to before investing in any form of investment plan to ensure secure and easy return payouts with the minimum or least amount of risk involved.

1. In any type of investment plan or policy, age plays a very crucial role that's why it is a common saying that the sooner you start investing the better results you will get. As in the later ages, the premium amount gets increased with each passing year.
2. A noble person should divide his income thoroughly into different parts to manage all the expenditures and investments from the beginning. Ideally, 40% of the income should be used for living expenditure and the rest 60% two parts in which the first 30% should be used for investment plans or saving plans whereas the rest 30% should be used to pay your liabilities whether it is a home loan, education loan or any other type of liabilities.
3. Before investing always look at your debts or liabilities you have. Important to calculate the payback amount and the time period for which you are bound to pay the installments or EMIs. So that you can invest accordingly and not overburden yourself with all the expenditure.
4. Thoroughly analyse and research before you invest in any investment or saving plan because the ideal or the benefitting investment plan should provide you with your monthly earnings back in case of any emergency. For say, if you are earning rupees 5 lac then returns should be around 4 lacs in a year to meet the uncertainty.
5. Use Premium features like an Insurance premium calculator to compare different plans and select the best out of all. It helps you to analyse your exact premium amount and to meet the requirements of the saving plan after a thorough analysis of your revenue and expenditure.
6. Before you invest in any saving plan it is vital to consider your other family members' income. Thoroughly analysed expenses being paid by their income and should not consider it as your part of the saving plan also analyse different investment plans your family members have invested into and keep a broader prospect on all the other benefits you will receive before you invest your income.

How we can help?

Quick comparison: our online portal provides all the information about policy, its features, coverage, cost benefits etc in easy and simple language for you to understand each and every point and make a good, well-informed decision as per your requirements and investment budget. Quick services: online platforms provide a greater medium to research and buy investment plans, anytime from any place at your comfort. Onspot's experts are always at your service to guide you and solve your doubts regarding anything related to policy buying. We provide you with all the information and required data to solve your queries and help you to make the right decisions. Value for money: we know the value of your hard-earned money and with our online portal we provide you with the best products directly from the insurance companies without any middle man to mislead or charge hefty commissions. Since we directly provide the links from the companies, you can save a huge amount on the pricing of premiums and there is no need to pay any commission charges or any other type of extra charges. Effortless user experience: seamless, Hassel free user experience is the sole motive of us to provide you all the bundle of information smartly to allow you quick access and comparison between the other policies. Our smart quotation forms precisely meet the need of the customer and highlight the popular questions as per their profile. The system generated premiums and other data are usually error-free of any possible human mistakes, so you get the most accurately calculated figures on your screens.

Investment Plans