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

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
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