A Guide to Long-Term Investment Planning

Investment planning is as important as earning. Investing in life insurance, term insurance, and health insurance has become a basic necessity for everyone.

If you are an earning member, you should look at three key things protection against future contingencies, wealth creation for your future goals and fixed or guaranteed savings for your definite goals.

Everyone fears the uncertainty the future holds but maintaining a safe and secure future for your family is highly essential.

Investing in insurance plans not only helps you save tax but it provides you with an assurance that come what may your family’s goals will be met. Term insurance being the most basic form of life insurance offers a high amount of coverage at a nominal premium and gives you the liberty to choose what time period you want to get covered for and the payout options.

Here is a guide to long term investment planning

Protect first:

The basic need which an insurance plan has been fulfilling right from the initial years is the need for protection. This is the key feature of life insurance plan and can’t be ignored. Term insurance plans provide risk coverage against death of the policyholder. Hence, they provide large sum assured at lower premium rates. When it comes to long term financial planning you can’t ignore a term plan because you wouldn’t want your parents, spouse or children to be dipped in debts when you are no more around to provide them financial support.

A term insurance plan will ensure that the show keeps running even in your absence. It takes care of your financial responsibilities in your absence just like you would!

Save for your fixed goals:

We all aware about our fixed goals which could be financial assistance for your child’s higher education, child’s marriage, etc. Since these goals are fixed, your risk appetite when it comes to investing for these goals will be fairly lower and hence it is recommended you opt for a goal based savings plan or an endowment plan as these will not only help you save for your goals regularly but also help you save tax and provide you with loyalty additions so that you consistently save to achieve your goals.

Invest for long term goals

Long term goals could be retirement, a second home or a new car.

It is vital for you to start saving for these goals right from the start. You can consider investing in ULIP as it will provide you with triple benefits good returns, tax savings and life cover. You also get the flexibility to switch between funds as per your age, market’s performance and risk appetite. The new age ULIP has no administration and policy charges. It also invests in your funds by providing additional allocation at regular intervals.

To start planning for your long term goals, you need to begin investing now! So that you reap the benefits of the volatility of the market and the effect of compounding as well!

Professional’s Advice:

Consider meeting up with an insurance professional before getting yourself into a long term commitment of paying premiums and getting benefits long time after you have started investing. Understand all pros and cons before choosing a particular plan. Ask the expert to help you choose a plan with appropriate premium rates and duration time.

Aegon Life not only answers all your doubts about long term insurance plans but also provides various plans for long-term insurances. It has varied plans that give you the opportunity of investing and insuring at the same time.