Term plans and mutual funds are the 3 lowest risk investments subscribed by most of the clients in India and across the globe.
Before we go any further, let us first clarify the fact that insurance should not be viewed as an investment tool like a term insurance plan.
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The decision to choose an investment plan is entirely based on the individual needs and preferences of the investor, as each investment medium offers
There are different benefits and different lock-in periods. The information presented here provides a basic overview of investment options. Do not rush
Investment options; Instead, study carefully and carefully before making the final choice.
Term insurance plan
Insurance is a means of protection that helps you to protect yourself or your family from any financial loss due to uncertainty and uncertainty.
Force Majeure If you are a dependent or you are the sole earning member, Then the Pure Term Insurance plan is the perfect life insurance for you.
Adequate coverage can help your family cope with the financial trauma of your unfortunate death.
Term plans offer more coverage at lower rates, allowing you to get a multi-crore life insurance policy at a lower cost. In addition, add-ons
Benefits like disability income, critical illness, and premium weavers protect you from the risk of loss of income. yours
A safety vehicle like term life insurance must meet the protection requirements. The period under section 80C of the Indian Income Tax Act, 1961.You can get a discount of Rs 1.5 per financial year on insurance plans.
Mutual Fund is a pure investment vehicle that invests your funds keeping in mind the investment objectives. Mutual Funds offer you a wide range of things.
There are categories and investment styles to choose from, and returns vary across categories. Mutual funds are known for their flexibility. you can stop or Pause, increase or decrease your SIP at any time without any charges and withdraw your money whenever you want.
ELSS (Equity-Linked Savings Scheme) is a distribution of Mutual Funds with excellent returns and tax benefits with a lock-in period of 3 years.
In terms of tax benefits, ELSS mutual funds offer tax benefits of up to Rs 1.5 lakh under section 80C in a financial year, which comes with a fund lock-in.
Term 3 years.
ULIP (Unit-Linked Investment Scheme)
Unlike mutual funds, ULIPs are a package of insurance and investment products. Where the lock-in period of ULIP is 5 years,
And a failed premium payment policy can lead to default. As a result, your insurance coverage will be terminated. ULIPs are generally suitable for high-risk investors and their returns are lower as compared to mutual funds. ULIPs also provide tax benefits on investments. ULIP investors can take advantage of this Tax under Section 80C of the Indian Income Tax Act, 1961, with a maximum of 10% of Sum Assured, and the policy is closed for 5 years.
SOURCE: ONEINDIA
