Financial planning isn’t an option. It is a necessity to keep you afloat in trying times. With the global economic decline, it is important to plan and prepare for tough times. Although bank savings have been a natural go-to move for years, it does not yield the results required to pull you out of difficult situations.
The best means to prepare for future financials is through savings investment plans that beat the rate of inflation and hold true to the value of the Indian Rupee. So, let’s explore the best savings investment plans to fulfil your long-term financial goals.
Savings Investment plans to consider
The ideal investment plans are those that require reasonable funding and pay huge returns in a short time. However, they also come with high-risk factors. The safest investment plans, on the other hand, involve comfortable funding and reasonable returns over a long period of time. So, here are the top savings investment plans to consider:
- Term Insurance with Return of Premium –
Term insurance plans allow you to choose shorter tenures with a high sum assured at a reasonable rate of premium. In the event of your demise, the beneficiaries will receive the death benefit as a lump sum or in monthly instalments, as per your specifications. However, if you survive the tenure of the plan, the insurance provider will return all the money that you invested in premiums, which is a lump sum amount that can assist you in fulfilling long-term goals. - ULIPs –
These are Unit Linked Insurance Plans which is another way of investing in the market through your life insurance premiums. The insurance provider offers options that you can select based on your risk appetite. Your premiums are invested in the market, and you earn profits as and when your money makes money. - Endowment Plans –
A form of life insurance investment plan wherein if the policy matures, you receive the maturity benefit as a non-participating insured. If you are a participating insured, then the insurance provider invests your money, and upon maturity, you will also receive bonuses from the policy. - Money-back plans –
Another form of life insurance savings investment plan is the money-back policy, which allows you to pay your premiums to secure the sum assured for your beneficiaries. The best part is that you can choose a percentage of the amount you invest to be returned to you at regular intervals. In the event of your demise during the policy tenure, the beneficiaries still receive the death benefit. - Government Schemes –
- Sukanya Samriddhi Yojna – These savings investment plans are designed by the government to support the goals and livelihood of female children. After surpassing the years of dogmas, the Indian government designed the SSY scheme wherein the parents invest a specified sum of money into the plan regularly. Once the plan matures, the child is entitled to the entire sum assured. They can use it for further education, starting their own business, marriage, or anything else.
- Kisan Vikas Patra – These savings investment plans are conceptualised to help Indian farmers survive tough times. The scheme requires you to invest a small amount into the fund, and for 9 and a half years, you receive guaranteed returns on the plan.
- National Savings Certificate – A savings certification that you can acquire from your nearest post office with a small investment can help pay guaranteed returns to you and your family in tough situations.
- National Pension System – A scheme designed to help you navigate your golden years. You have to invest a small, predetermined amount into the NPS fund for a specified period of time. In return, the government pays you a monthly income after retirement to help you meet your expenses. You can also choose to receive a lump sum amount that will be higher than your actual investment.
- Public Provident Fund – These savings investment plans require you to invest a small amount of money at regular intervals into the PPF. Upon maturity, you receive guaranteed returns.
- Employee Provident Fund –
If you are a salaried professional, you can invest a fixed sum of money into the EPF at regular intervals. The Fund compounds over time and pays guaranteed returns once it matures. - Fixed Deposits –
These investment plans are excellent solutions to build a habit of saving money. You will need to determine an amount that you want to invest for a specified period at a specified rate of interest. Over time, you need to keep funnelling into the account as it compounds and gains interest. When the FD matures, you can withdraw the entire sum which will far surpass the investment based on the rate of interest as predetermined.
Conclusion
You can choose investment plans that are aligned with your long-term goals. If you wish to provide financial security for your loved ones while earning neat profits, then combining life insurance with savings investment plans is the best solution for you. However, if you have other necessities such as securing your golden years or setting aside savings for emergencies, you can choose from the variety of savings investment plans.