Know these 10 things about an investment plan

Whether you are looking to buy a house, support your kid’s education, or secure your life after retirement, all these plans need strong financial backing. Therefore, it is wise to keep building wealth while working towards other goals. In other words, you need to make an investment plan and create a financial portfolio that will help you achieve your financial goals.

An investment plan may be one of the simplest ways to build wealth over time. It is a financial instrument to help create sustainable wealth for the future and provide you with the advantage of maximizing your savings. This wealth creation requires planning and understanding of different investment plans available. The investment plans offered by most insurance companies are simple and one of the best options available. 

So here are 10 things you should know about an investment plan: –

Fulfils Your Financial Needs

Analyzing your financial situation while considering the risk tolerance and investment objectives is the first step towards fulfilling your financial needs. It would be best if you considered factors like family size, number of eating members, and your financial goals. Taking advice from a finance professional is a good idea. They can clarify your doubts and help you find the best investment plan for you.

Investment Diversification

You should aim to build a diversified financial portfolio as per your investment objectives. Putting your funds in different instruments can maintain the right balance between risk and return. Giving priority to an investment plan that offers security to your loved ones can be in your best interest. Insurance policies like term plans, ULIP, and other such instruments can help generate appropriate returns.

Time Period

While looking for the best investment plan, you should know how much time it will take before you can turn your investments into cash. It is one of the vital elements that may determine your investment objectives. So, depending on your needs, you should put your funds in a short-term or a long-term investment plan.

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Periodical Reassessment

Since market forces can control the value of your investments, it is crucial to monitor them regularly. You may consider readjusting your portfolio if it is not generating good returns. Therefore, based on your financial goals, you can choose from a variety of investment plans offered by insurance companies.

Death Risk Coverage

All investment plans do not offer death risk coverage, but life insurances do. This can take care of the financial need of your family even in your absence. In the case of life insurance, the sum insured is paid to the nominee in the event of the unfortunate death of the policyholder.

Premium Amount

This amount is the sum that you need to pay the insurance company regularly until you avail of the benefits of the insurance policy. 


You can opt for riders if you buy a life insurance investment plan. Riders are an add-on to your investment plan that expands the policy coverage. If you get the riders, you will also get the rider benefits in addition to the sum insured. Riders may include accidental death or disability, critical illness, accelerated death benefit, etc.


With a wide range of investment plans available in the market today, you as an investor have the flexibility to choose from the best investment options as per your financial objectives, tenure, and risk tolerance.

Payout Type

An investment plan may offer regular payouts or a one-time payment. There are some investments plans that offer a mix of both. So, choose the best investment plan that serves the purpose of your investment.

Tax Benefits

An investment plan is not only a risk cover or a way to accumulate wealth, but it can also help you save taxes. As per sections 80C and 10(10D) of the Indian Tax Act, premiums and payout may be exempted from tax. The best investment plan is the perfect combination of savings, wealth creation, financial protection with tax benefits.

Whether you are a salaried or self-employed individual, you cannot achieve your financial goal with savings alone. Keeping your savings idle in your bank account is an opportunity lost. You must maximize your savings and build enough wealth by investing in different plans. Invest your money in the best investment plan to get maximum returns in the future. It is advisable to invest early due to the compounding effect of the investments that help grow your money. 

While investing, it is essential to understand and evaluate different aspects of the investment plan to find the one that suits your needs and reaps you maximum benefits. You can consider putting your funds in investment plans offered by Max Life Insurance. They offer a wide range of investment options along with extensive benefits to help you achieve your financial goals.

Adrianna Tori

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