As John F. Kennedy says, “The time to repair the roof is when the sun is shining”. Likewise, when it comes to financial planning, the best time to start your investment journey is when you are in your prime working years. You must choose a hassle-free investment option if you want to maintain your high standard of living. It will guarantee a systematic and well-planned approach to investing and achieving your financial objectives.
People who are just beginning in the area of financial planning could find investment plans intimidating. But if the COVID pandemic has taught us anything, it is to save aside money for unforeseen events in life. A onetime investment plan can be useful in this situation. It will support you in times of financial need and assist you in managing your resources.
What is an Investment Plan?
Investment plans are strategic financial planning that help an investor weigh all the risks involved while investing. It considers many variables related to the investor. Simultaneously, it helps you make the best investment possible while managing your expenses and making investments in a disciplined manner.
A one-time investment plan helps in recognising your goals and available resources. It gauges the best option to achieve your financial goals while making sure you fulfil your other financial obligations. There are various options available for investments in the market that offer you a pool of benefits. Let’s have a look at some of the benefits of a one-time investment plan.
Benefits of an Investment Plan
Investment plans entail several features and benefits. Here are a few benefits that you should know before buying an investment plan-
Security of your family: One’s safety is said to be in one’s own hands. However, with a one-time investment plan, you can secure your family’s future in case something happens to the bread earner of the family.
Income Management: Paying taxes, and credit bills, while managing daily expenses and investing can be stressful if not done right. Investment plans will allow efficient management of income to the investors
Financial Awareness: Before investing in any plans, it is essential to be aware of your financial condition and accordingly choose a suitable investment plan for yourself. Understanding your finances will make it easier to reach your financial goals.
Sustaining Funds: The best aspect of investing in any plan or scheme is to be able to use them in times of financial emergencies. A plan with a good maturity value will back you in such situations.
Maintain Living Standard: With investments, you can rest assured of maintaining your standard of living in difficult circumstances such as medical or financial emergencies.
You will come across many investment plans that will come attached with these benefits. However, to help you decide on the best one-time investment plan for a gleaming financial future, here is a brief description of one highly popular plan.
Unit Linked Insurance Plans or ULIP:
Unit Linked Insurance Plan or ULIP plan is a hybrid plan providing investment and insurance. It entails dual benefits that make it a highly popular investment plan. An investor can simultaneously invest and get insurance under one investment plan. ULIPs come with many benefits-
Life Cover: Under life cover, in case the beneficiary of the plan passes away, the assured sum is transferred to the nominee of the plan. However, in case the beneficiary completes the term of the plan, they are given the maturity value of their plan.
Tax benefits: Under the EEE category of Section 10D, ULIPs are exempt from taxes levied on withdrawals, investments in the plan and the proceeds. By investing in ULIPs, you not only save tax but also sustain funds for your future.
To calculate the return on investments and maturity value of your ULIP, you can make use of a ULIP calculator. A ULIP calculator is an easily accessible and easy-to-use tool that is developed to assist investors in calculating the maturity value and return on their investments, as well as comparing various available ULIPs based on their returns.
A ULIP calculator is a great tool to help investors in their financial decision-making process. Since it is an online calculating tool, it minimises the scope for calculation errors. The transparency that it provides is what makes it an efficient tool.
By choosing a one-time investment plan, you will always have financial backing. Given the recovery of daily life after the epidemic, it is particularly necessary at this place and time. Before purchasing any investment plan, it is encouraged to review it carefully. Consequently, employing a ULIP calculator will make investing easier than ever.