In India, several investment plans come bundled with insurance, offering a dual benefit of wealth creation and life coverage. These plans are ideal for those looking for a balanced approach to securing their family’s financial future while also investing in various instruments like equity, debt, or a mix of both. Let’s take a closer look at some of the best investment plans with insurance in India:
1. Unit Linked Insurance Plans (ULIPs)
ULIPs are one of the most popular investment options that offer both insurance and investment under a single plan. A portion of the premium paid goes towards life insurance coverage, while the remainder is invested in funds such as equity, debt, or hybrid funds based on the policyholder’s preference. ULIPs are suitable for long-term investors looking for flexibility in choosing their investment strategy.
- Insurance Coverage: Yes
- Investment in: Equity, debt, or hybrid funds
- Lock-in Period: 5 years
- Expected Returns: 8% – 12% annually (market-linked)
- Risk Level: Moderate to High
- Tax Benefits: Under Section 80C and Section 10(10D)
Top ULIP Providers:
- HDFC Life Click2Invest ULIP
- ICICI Prudential Life Insurance Wealth Builder II
- Bajaj Allianz Future Gain
2. Endowment Plans
Endowment plans are traditional life insurance policies that also allow you to save over a period of time. They provide a guaranteed sum assured in case of death during the policy term, and a maturity benefit if the policyholder survives the term. These plans are best for individuals who prefer stable returns and a life cover without the risk of market fluctuations.
- Insurance Coverage: Yes
- Investment in: Debt-oriented instruments (low risk)
- Lock-in Period: 5-10 years
- Expected Returns: 4% – 6% annually (low-risk)
- Risk Level: Low
- Tax Benefits: Under Section 80C and Section 10(10D)
Top Endowment Plan Providers:
- LIC New Endowment Plan
- HDFC Life Sanchay Plus
- SBI Life Smart Bachat
3. Money Back Plans
Money back plans provide periodic payouts during the policy term, ensuring liquidity, along with life insurance coverage. In case of the policyholder’s death, the full sum assured is paid to the beneficiary, regardless of the payouts already made. These plans are suitable for those seeking regular returns and a safety net for their family.
- Insurance Coverage: Yes
- Investment in: Debt-oriented (low risk)
- Lock-in Period: 5-10 years
- Expected Returns: 4% – 6% annually
- Risk Level: Low
- Tax Benefits: Under Section 80C and Section 10(10D)
Top Money Back Plan Providers:
- LIC Money Back Policy
- ICICI Prudential Cash Advantage
- Max Life Guaranteed Monthly Income Plan
4. Whole Life Insurance Plans
Whole life insurance plans provide life cover up to 99 or 100 years of age, ensuring lifelong financial protection for your family. Some plans also offer bonuses or wealth accumulation over time. While these plans focus more on life coverage than on investment returns, they still offer an opportunity to build wealth over time with a guaranteed payout.
- Insurance Coverage: Yes (lifelong)
- Investment in: Debt-oriented (with bonuses)
- Lock-in Period: Typically 10-15 years
- Expected Returns: 4% – 6% annually (low-risk)
- Risk Level: Low
- Tax Benefits: Under Section 80C and Section 10(10D)
Top Whole Life Plan Providers:
- LIC Jeevan Umang
- ICICI Prudential Whole Life Plan
- Max Life Whole Life Super Plan
5. Term Plans with Return of Premium (TROP)
While traditional term insurance plans offer pure risk cover with no maturity benefit, Term Plans with Return of Premium (TROP) provide life insurance coverage and return the premiums paid if the policyholder survives the term. These plans offer a balance of protection and financial return, without any investment risk.
- Insurance Coverage: Yes
- Investment in: Premium refund
- Lock-in Period: Duration of the policy (typically 10-30 years)
- Expected Returns: Refund of premiums paid
- Risk Level: Low
- Tax Benefits: Under Section 80C and Section 10(10D)
Top TROP Providers:
- HDFC Life Click2Protect 3D Plus
- Max Life Premium Return Protection Plan
- Bajaj Allianz Life Smart Protect Goal
6. Guaranteed Income Plans
Guaranteed income plans offer fixed, predictable returns along with life insurance coverage. These plans provide a steady stream of income either during or after the policy term, depending on the plan chosen. They are ideal for conservative investors who want to ensure a guaranteed income stream while securing their family’s financial future.
- Insurance Coverage: Yes
- Investment in: Guaranteed returns
- Lock-in Period: Typically 10-20 years
- Expected Returns: 4% – 6% annually
- Risk Level: Low
- Tax Benefits: Under Section 80C and Section 10(10D)
Top Guaranteed Income Plan Providers:
- HDFC Life Sanchay Fixed Maturity Plan
- Tata AIA Life Guaranteed Income Plan
- ICICI Prudential Guaranteed Income for Tomorrow
Conclusion
The best investment plans with insurance in India offer a combination of financial protection and wealth creation, making them ideal for individuals looking to achieve multiple goals with a single product. From market-linked ULIPs that offer high growth potential to traditional endowment and whole life plans that provide guaranteed returns and safety, there is a wide range of options to suit different financial objectives.
When choosing an investment plan with insurance, consider factors like your financial goals, risk tolerance, and investment horizon. It’s also important to assess the life insurance coverage provided to ensure it adequately protects your family in case of any unforeseen events.
Tip: Always compare the features, benefits, and costs of various plans before making a decision. Consulting with a financial advisor can also help tailor an insurance-cum-investment strategy that aligns with your long-term goals.
