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Everyone wants their money to increase in value over time, bar none. You should include investing as a significant component of your financial strategy in order to increase your wealth. Consider investing your funds in a variety of investment products that could help your investment grow and enable you to fulfil your long-term goals if you have a lot of financial targets in mind. This is one of the most efficient strategies to achieve your financial ambitions.

How Are Money Back Plans a Good Choice For All?

Various reasons that make money back policy a good fit for everyone are listed ahead.

1.     Insurance Protection

Money back plans give you the perfect blend because they are both an investment and an insurance product. Irrespective of the monthly payments you have been receiving, your nominee will receive the guaranteed amount if anything awful were to happen to you. In addition to helping you grow your money and obtain a regular income to suit your needs, a money back program also protects your family’s finances in the event of your passing.

2.     Liquidity

Since you would receive regular payments under this arrangement, you will have liquidity. As a result, you can better prepare for and handle your current and future financial needs.

3.     Rewards

If the insurance provider declares one, you can receive a bonus based on the product you choose and its underlying circumstances. This could be seen as an added benefit, and it is constantly advisable to have a money back plan from a trustworthy insurance company.

4.     Survival Advantages

Depending on the terms and conditions of the goods, a money back plan can pay you a fraction of the sum assured. You will be eligible for maturity benefits if you live out the policy term. In addition, you will be eligible for any periodic payouts that you could be eligible for in the interim between insurance terms as Survival benefits.

Who Can Invest In Money Back Policy?

People who wish to create low investments, individuals who want to build wealth and have life insurance, and those who need payments at frequent basis all through the policy term to satisfy particular requirements should consider money back plans.

For individuals who need money on a daily basis, such for example for a child’s education, these plans are a good choice. These programmes are frequently used by people to reduce their tax obligations. Therefore, if you need to reduce your tax liability, you can purchase these plans because the premiums paid are deductible per Section 80C of the Income Tax Act as long as certain conditions are met. You need to first check the insurance wordings for qualifying criteria in order to obtain the appropriate money back policy.

Endnotes

According to the information above, if you’re looking for something that provides insurance protection while also helping you create a capital, you might think about purchasing a money back policy for yourself. If you prefer a regular income to be paid into your account and have no interest in taking on risks, a money back insurance is a good solution for you.

Every parent wants their child to have the greatest education possible without facing any financial obstacles. Due to this, it is crucial for parents to make the best investments possible to cover their children’s educational costs and safeguard their future. This post is for you if you’re seeking some investing choices for the future of your kids. Financial Express Online has compiled a list of the top seven child investment alternatives with the assistance of specialists.

Different Forms Of Investment For Your Child

Below are some of the different types of investment that help you multiply your money for your child:

• Child Insurance Plan

A sort of life insurance plan called a child education plan has the dual purposes of providing you with a life insurance policy and growing your funds. At the conclusion of the plan, you receive a sizable maturity sum for your children’s educational expenses.

So a child insurance plan is a type of investment and insurance plan that guarantees financial security to achieve your child’s long-term educational ambitions. The maturity value of a child insurance plan can be used for a variety of purposes, such as paying for your dependent’s marriage or sending him/her overseas for higher education.

• Non-convertible debt securities and corporate deposits (NCD)

There are numerous investing opportunities that can multiply money by two. Business deposits are one of them. In comparison to bank fixed deposits, Non Banking Financial Companies (NBFCs) and Corporates offer grea

Based on ICRA ratings and the deposit’s tenure, the rate of return for these deposits ranges from 9 to 10%. The time it would take for the investment in this strategy to double is about 8 years. Companies issue corporate deposits, whereas NCDs are issued by businesses that also include NBFCs.

• Certificates of Savings National

One of the safest investment options is a National Savings Certificate (NSC), which is issued by the Indian Postal Department. These certificates feature fixed terms of five and ten years, as well as a fixed interest rate that is based on the term.

Under Section 80C of the Income Tax Act of 1961, National Savings Certificates are exempt up to Rs 1,50,000. Additionally, there is no TDS applied to the sum received when the scheme matures. The ability to obtain loans from any bank is another advantage of investing in NSCs.

• Fixed Deposits In Banks

Banks’ fixed deposits are a well-liked form of investment. Up to Rs 1 lakh in fixed deposits are insured by the Reserve Bank of India (RBI). Following the recent RBI repo rate decreases of 0.50% (0.50 bps), a number of banks have reduced interest rates for fixed deposits by 0.25% to 0.50% annually.

• Government Provident Fund (PPF)

Another well-liked and dependable investment programme offered by the government is Public Provident Fund, or PPF. A minimum annual deposit of Rs 500 is needed to invest in PPF. The 15-year lock-in duration for this plan. A salaried, independent contractor, or government employee can invest in this plan because it has the lowest contribution when compared to other savings plans. 8.75% is the annual rate of return that is being promised for the fund’s specific year. The maturity amount will double in about 8 years, and after the lock-in period, the money will increase several times over.

• Investment funds (MFs)

There are many mutual funds, including, to name a few, ELSS (Equity Linked Savings Scheme), debt- or equity-focused, balanced, or hybrid mutual funds. Mutual funds provide a higher rate of return than other alternative investment tools, although having a market risk. The duration of the investor’s chosen mutual fund affects the rate of return. Rates of return for long-term mutual funds range from 12% to 15% annually. It will take roughly 5 to 6 years to double your money with mutual funds.

• Gold ETFs

In India, gold is a highly desirable commodity. This yellow metal is a fantastic investment option. Exchange Traded Funds (ETFs) for gold were introduced in India in 2002.  One of the simplest ways to invest in precious metals, it offers an annual return rate of 22%.

Conclusion

A financial investment in your child’s skill development is also advisable. It might be anything that can help your child in the long run, including digital media, athletics, or the arts. Additionally, explain the value of money to your child and encourage him to save money for his own aspirations. He’ll learn the value of money thanks to this.  

Both child insurance and child education plans are ways to safeguard your child’s future, but they differ in more than ways. You can make a decision to secure your child’s future only after knowing the features of the two. Discover some of the characteristics that set them apart by reading on.

What Is Life Insurance?

A life insurance product basically ensures the financial security of your loved ones after your passing. Here, the policy can be useful to safeguard both your future and the future of your child.

Ideally, life insurance pays out a single sum of money to the policy’s beneficiaries upon the death of the policyholder. The deceased’s dependents may spend the money received as they see fit. However, term insurance is also the most cost-effective life insurance option on the market.

Unlike a child plan, you can buy the policy at any life stage and customise it as you expand your family. Because of this, Indian insurers let you increase the policy’s coverage with rider benefits.

Your children’s and other family members’ financial futures are also secured by a life insurance policy.

What Is Child Insurance?

A child insurance plan serves as a life insurance policy and investment that, over time, contributes to the future well-being of your child. There are multiple child plans available in the market. Parents are the main policyholders and the children are the beneficiaries of child insurance.

Based on the earnings generated, the investment portion of the policy helps pay for your child’s college education or marriage. While the life insurance portion protects your child’s financial future in the event of your untimely demise.

What Distinguishes Child Plans Different From Other Insurance Plans?

Following are some of the key differences between child plans and other plans – 

• Purpose

A life insurance plan, as the name implies, is largely for providing safety in case of your demise and seeks to support the family contingent to that event. In contrast, a child insurance policy will pay out the entire term amount or recompense the child when they reach adulthood, allowing them to continue their education in the terrible case of the parent’s passing.

• Premiums

The coverage and benefits chosen will determine the cost of a child plan’s premiums.Additionally, the insurer keeps funding the coverage even after your passing. Therefore, the child plan rates tend to be larger compared to life insurance.

To calculate the rates for your chosen coverage and benefits under the life insurance, you can use the life insurance calculator.

• Payouts

Child plans give money to the kids at predetermined times or milestones. Except for the death benefit paid to your dependents, there are no payouts in case of child insurance.

• Partial Withdrawals

Child insurance permits partial withdrawals. Any financial obligation may be satisfied with the gained funds.

With life insurance, partial withdrawals are not permitted. However, if you have critical illness insurance, the insurer will pay you a flat sum when you are told you have a serious medical condition. The money earned might be used to pay for hospital stays and medical care.

Conclusion

While both child education and insurance plans offer the policyholder and the child clear advantages, there are differences in the duration, the premium paid, and the benefits covered. You can choose either option to safeguard your child’s financial future after you are certain of the benefits you anticipate from your child plan.

In 1968, the Ministry of Finance established the Public Provident Fund Scheme, a tax-deferral plan with a 7.6 percent interest rate. It was created mainly to encourage salaried people to save, and the minimum deposit amount in a PPF account is not very high. Investing in a PPF account is a good idea because it lets you save on taxes, it’s easy to understand because it’s backed by the government, and the money you put in there is safe.

What is a Public Provident Fund Account?

A PPF is a voluntary long-term investment plan that is not linked to the market and is supported by the central government. It guarantees returns (usually between 7-8%). PPF plans have a lock-in duration of 15 years, which can be extended by up to 5 more years. After seven years, however, you can take money out of your account (up to half of the public provident fund balance). You can also use the money in your PPF account to get a loan.

PPF accounts can accept deposits as low as Rs. 500 and as much as Rs. 1.5 lakh. If you don’t keep at least the minimum amount in your Public Provident Fund account, it goes to sleep. To open the account, you will have to pay a fine of Rs. 50. On the other hand, if you put more than Rs. 1.5 lakh into your PPF account, the sum over Rs. 1.5 lakh won’t earn any interest.

Contributions to a PPF account, income received on those contributions, and the principal at maturity are all free of taxation thanks to the account’s exempt-exempt-exempt (EEE) status. Under Section 80C, you can deduct the full amount of your PPF contributions up to Rs. 1.5 million from your taxable income.

Benefits from the Public Provident Fund

The following are the benefits of the public provident fund:

• A public provident fund is a good way to plan for retirement because, with disciplined saving, it’s easy to set up a great financial cushion for the future, and both investment growth and tax-free returns add to it.
• A PPF is a good long-term investment that lasts 15 years and has a seven-year lock-in period. With attractive interest rates that are added up every year, the PPF is a better way to make money than bank fixed deposits.
• A PPF is a plan that is backed by the government. It has a lower chance of going bankrupt and is thought to be a safe way to save money for the future.
• Since PPF is a government-backed programme, it is immune to claims from creditors and legal processes.
• The money you put into a public provident fund grows tax-deferred, and any withdrawals you make after retirement are likewise excluded from taxes under section 80C of the Income Tax Act, making it a great choice for retirement savings.
• A PPF account can be opened at any government or public sector bank, including post offices, that is authorised to accept PPF deposits. Also, a PPF account can now be opened by a single person.

Period of the PPF’s Validity

The PPF is valid for at least 15 years. This deadline can be pushed back by five years at a time. Your PPF account can be preserved even after it has reached maturity if you like, and the present rate of return means that doing so will not incur any penalties.

 Maturity of the Public Provident Fund

Your Personal Pension Fund (PPF) account is considered mature if 15 complete financial years have occurred since the end of the fiscal year in which it was first opened.

Withdrawal from the Public Provident Fund (PPF)

By taking Form C to a post office or bank at the end of the term, you can get the whole amount and close your PPF account. You can avoid having to remove the entire balance at once by withdrawing a certain amount annually instead of taking it out when the investment matures.

Conclusion

In addition to assisting you in setting aside a sufficient amount of money for your life after retirement, a Public Provident Fund (PPF) is a useful financial tool that, throughout the course of your working life, can also serve as a valuable investment that reduces your overall tax liability.

Planning for retirement is more important than ever if you want to be financially stable and independent in the future. But because inflation is going up every year, small amounts saved in a bank account won’t be enough to last the whole time you’re retired. Smart investments must be made today in order to have a comfortable retirement in the future—say, a pension of RS. 30,000 per month.

How to Invest to Get a 30K Pension Every Month?

If someone invests regularly, they can easily get a monthly pension of Rs. 30,000 or much more. Here are a few of the important things that affect how much an investor can get as a pension when he or she retires:

1. Investing Age

The age at which investments are made is important since beginning investments at a young age might yield greater returns on a smaller initial investment.

2. Pension Option

Compared to equity funds, which offer high returns for those willing to take on significant risk, many government initiatives and schemes offer assured returns for those willing to take on zero risk. If an individual wants a monthly pension of Rs. 30,000, for instance, they will need to invest roughly Rs. 5,000 each month for 10 to 15 years.

3. Tax Deductions

An investor’s savings can go to the government if they don’t plan their investments well. Investments should be spread out so that taxes are kept to a minimum and more money is made.

How to Get Rs. 30,000 a Month in a Pension Through Investment?

Investing carefully can yield a pension of Rs. 30,000 per month, which is not an astronomical sum. If one is planning for retirement and wants a monthly income of Rs. 30,000, there are a number of investment opportunities to explore –

1. The National Pension Plan (NPS)

The National Pension Scheme, or NPS, is a voluntary retirement plan backed by the government. It is run by the Pension Fund Regulatory and Development Authority (PFRDA). Under the NPS plan, investors can put a certain amount of their monthly salary into their NPS account while they are working. When the investor reaches the age of retirement, they are permitted to withdraw up to forty percent of the accrued corpus, but the remaining sixty percent must be re-invested in the annuity.

2. Plans for Insurance Based on Units

ULIPs, or Unit-Linked Insurance Plans, are the plans that investors should look for if they want both security and investment benefits. This insurance and investment plan helps make money and provides protection for the family of the policyholder in case they die too soon. So, it is gaining a lot of popularity right now and is thought to be one of the best ways to invest for people who are willing to take moderate to high risks.

3. Term Deposits

Fixed deposits are a type of investment that can be made in India at many financial institutions and banks. They offer a significant interest rate over a time period that can be anywhere from seven days to ten years. The interest rate on the fixed deposit is set when the account is opened. Since it is not linked to the market, the rate does not change with the changes in the financial market.

4. Plans For Pensions That Guarantee A Return

The main goal of this policy is to give investors a fixed monthly income even after they retire, so that they can enjoy their retirement without having to worry about money.

Conclusion

Making the proper investments at the appropriate time can make it easy for a policyholder to retire with a monthly income of $30,000. But people often put off planning for retirement, which can lead to a hectic life filled with financial concerns. When you think about how unpredictable life is, a few retirement amounts every month are essential and should be taken very seriously.

Are you considering investing in a ULIP? Now is the perfect time to do so – with interest rates low and the market looking healthy, there’s no reason not to take advantage of this investment opportunity. If you’re unsure how much return you can expect on your investment, check out our ULIP calculator to see what figure you could be looking at.

What Is An ULIP?

ULIP stands for Unit Linked Investment Plan. Essentially, it is a type of investment product that offers a high rate of return, but with the added security of being backed by the government. ULIPs come in a variety of shapes and sizes, but all share one key feature: they are designed to give you regular income while you invest for the long term. How do ULIPs 

ULIPs work by linking your principal (the money you deposit) with the returns generated on your investment. This means that even if the stock market goes down, your ULIP will still provide you with the promised returns. How much can I earn?

How Does The ULIP Work?

ULIPs work by allowing investors to withdraw money tax-free, after making initial payments over a set period of time. The initial payments are usually high, but the returns on ULIPs tend to be much higher than regular savings accounts or investments.

ULIPs can be a great way to get high returns while taking minimal risk. However, like any investment, there are risks associated with using ULIPs. One of the biggest risks is that an ULIP may not pay out as expected. If the investments made in an ULIP don’t generate enough returns to cover the initial payment obligations, the investor may have to withdraw their money early. This can lead to significant losses.

ULIPs are also risky because they’re typically designed as short-term investments. If the markets are in a downturn, ULIPs may not perform as well as other investments. This means that if you decide to use an ULIP, you may need to be prepared to lose some of your money.

Overall, ULIPs are a great way to get high returns with minimal risk, but there are risks associated with using them so it’s important to understand the product before investing.

Benefits Of Investing In ULIPs

Following are some of the key benefits of investing in ULIPs – 

1. Low-Cost And Tax-Efficient: ULIPs are often tax-efficient, as the returns are taxed at a lower rate than regular equity or debt investments.

2. Flexible Investment Options: ULIPs offer a wide range of investment options, including stocks, bonds, and options. This flexibility allows you to tailor your holdings to cater to your individual risk and investment goals.

3. Quick And Easy Investment Access: ULIPs are typically easy to invest in – you can typically open an account within minutes through a broker or online portal.

4. Diversification Benefits: ULIPs offer diversification benefits over traditional stocks and bond investments, as they provide exposure to a wider range of companies and asset classes. This helps reduce the risk of losing money if one sector or asset class experiences a downturn.

5. Flexibility To Grow Your Money Over Time: Withdrawal penalties may apply if you withdraw funds from ULIPs before the maturity date, but this is generally less restrictive than with other types of investments. 

How To Calculate Your Return On An ULIP Investment Online?

If you’re considering investing in ULIPs, you’ll want to know how much return you can expect on your investment. Fortunately, calculating your return is easy with a few simple steps.

Here’s how to do it:

1. Start by figuring out the initial deposit amount you made into your ULIP.

2. Next, calculate the annualised return on that investment over the course of the year. This will give you the percentage of return you earned on your initial deposit each and every month.

3. Finally, add up all of those monthly returns and divide them by the total number of months in the year to get your final return percentage.

This is just one way to calculate your return on an ULIP investment, but it’s a good way to get an idea of what you stand to earn. Remember to do your own research before investing in any type of financial product, as the returns you might experience could vary significantly from one ULIP to the next.

Conclusion

If you’re considering investing in a ULIP, or want to calculate your return on investment, our online calculator can help you figure out what’s right for you. Just enter the details of your investment and we’ll do the maths for you. This will give you an idea of how much money you stand to make over time, as well as how much risk there is involved. Remember: never invest money that you cannot afford to lose!