Skip to main content

How to make Rs 1 crore through Insurance Plan?

 

Are you aspiring to develop a retirement corpus of Rs 1 crore in a period of 15 years but worried about your investment capacity? Do not worry. There are potential ways through which you can reach your target without any difficulty.

The only thing you have to ensure is that you are able to invest Rs 5 lakh every year for a period of at least 7 years. Yes, you do not have to invest for all the 15 years. Just invest Rs 35 lakh spread over 7 years and then reap the benefits after 15 years.

How to go about it?

There are some certain insurance plans which can help you achieve this magic number of Rs 1 crore. Let's discuss those plans here.

HDFC Life's Classic Assure Plan is one of the best plans which can help you reach your goals in a hassle free manner. Just keep paying the premium amount of Rs 5 lakh every year and you can expect a pay back of Rs 1 crore after 15 years.

 

We are assuming that your premium investment yields returns to the tune of 12 per cent a year. This is the average rate of return and if the returns go higher, you may end up achieving much more that Rs 1 crore.

For instance, if your insurance plan is able to generate returns of 15 per cent a year, then you can get a corpus of Rs 1.30 crore in the same period. That's the power of compounding returns. A slight upsurge can bring you great benefits.

Given the investment scenario in the Indian market, the coming years are going to be promising ones and there are possibilities that your investments bring far superior returns.

Meanwhile, during the policy premium payment period, you can claim tax benefit of up to Rs 1.5 lakh under section 80C of the Income Tax Act. That means, if your annual income falls under the bracket of 20 per cent, you will straightaway save Rs 30,000 of tax every year.

If the tax bracket is 30 per cent, then this benefit will go up to Rs 45,000 a year. When you multiply this tax saving by 7 years, which is your premium payment term, the total comes anywhere from Rs 2.10 lakh to Rs 3.15 lakh.

There are several other benefits attached to the Classic Assure Plan. Of course, since it is a life insurance plan, you will get a 'sum insured' value of Rs 25 lakh and death benefits of around Rs 50 lakh.

What are the other options?

If you wish to reduce the period of pay out, then you have one more option which is a good one. HDFC Personal Pension Plan is the plan which can bring you Rs 1 crore in a period of 10 years. Just that you have to pay the same amount of Rs 5 lakh for 10 years. That means when you pay Rs 50 lakh spread over a period of 10 years, then you can receive an amount of Rs 1 crore.

 

Are there any further advantages?

The above plans make a great proposition given the fact that you do not have to do anything. Just invest and get returns after a certain time period. It is unlike stock markets or mutual funds where you have to keep an eye over your investments.

If the stock market is going bad, you have to exit from the market at the right time. But with the aforementioned insurance plans, you do not have to worry about the market movements.

That's the kind of peace and smooth ride you can expect. Plus there are benefits attached to life insurance.

These plans bring a complete package for you. You are able to secure your retirement plus your family's financial profile in case you go through a severe incident of death. The plans help you fulfill your responsibilities in a much more prudent manner.

So why to put your dreams at risk and go for risky investment in stock markets and other instruments? You can go for bank instruments but the downside is that you do not get tax benefits and life risk coverage. Also, the returns are quite average at 8-9 per cent a year.

Today, with the reforms in the insurance market, life insurance plans are more of savings driven investment plans than just risk coverage tools. Choice is yours!

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...
Read more

SBI bonds FAQ

  Maximum retail subscription and over – subscription There is a lot of excitement around these bonds, so I won't be surprised if they get over-subscribed on the first day itself. So, I thought Sameer asked a very good question about over-subscription. Here is that discussion. Here are some other questions that you may find useful. Can I trade the SBI bonds on NSE after it lists? Yes, these can be traded after listing. Where can I get the application forms, and can I buy the bonds online? You can get the application from notified branches, and then fill it up there and submit it. To the best of my knowledge, there is no way to invest in them online, but if anyone knows otherwise then please leave a message, and let us know. Can NRIs apply for these bonds? NRIs can't apply for these bonds as they fall under one of the ineligible categories. Can you take a loan by keeping the SBI bonds as security? The terms of the issue in the prospectus state that the bank shall no...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Zero Coupon Bonds or discount bond or deep discount bond

A ZERO-COUPON bond (also called a discount bond or deep discount bond ) is a bond bought at a price lower than its face value with the face value repaid at the time of maturity.   There is no coupon or interim payments, hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures. Zero-coupon bonds may be long or short-term investments.   Long term zero coupon maturity dates typically start at 10 years. The bonds can be held until maturity or sold on secondary bond markets.
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now