In the dynamic landscape of investment plans, finding the right investment plan to secure your financial future can be a daunting task. However, for those with a vision for the future and a commitment to financial stability, a 7-year investment plan in India can be a wise choice. This time frame strikes a balance between short-term gains and long-term security, making it an attractive option for individuals seeking to grow their wealth. In this article, we will explore some of the best investment plans tailored for a 7-year horizon in the Indian market and we will cover topics such as different types of investment plans for 7 years, evaluating the risks and finding the right plan that fits your individual needs.
What is a 7-Year Investment Plan?
A 7-year Investment Plan refers to a financial strategy where individuals allocate their money to various investment plans to achieve specific financial objectives over seven years. The primary purpose of such a plan is to grow one's wealth, achieve financial goals, or create a source of income over the medium term.
Why Consider a 7-Year Investment Plan?
Considering a 7-year Investment Plan can be a strategic financial move for several reasons:
- Long-Term Financial Goals: A 7-year investment horizon aligns well with various long-term financial goals, such as funding your child's higher education, planning for retirement, or purchasing a home. Investment plans can help you accumulate the necessary funds over this period.
- Wealth Accumulation: Insurance-linked investment plans, such as unit-linked insurance plans (ULIPs), endowment plans, and savings plans offer the potential for wealth accumulation over time. These plans combine insurance coverage with investment options, allowing you to grow your money while ensuring financial security for your loved ones.
- Risk Mitigation: Life is unpredictable, and unexpected events can disrupt financial plans. Investment plans often come with life insurance coverage, which can provide financial protection to your family in case of your untimely demise. This can be especially important when you have dependents or loans.
- Tax Benefits: Many investment plans offer tax benefits under Section 80C and Section 10(10D) of the Income Tax Act in India. This can help you save on taxes while building wealth.
- Flexibility: Investment plans often provide flexibility in terms of premium payment frequency, choice of funds, and the ability to switch between funds. This flexibility allows you to adapt your investment strategy as your financial goals or risk tolerance change.
- Liquidity: While investment plans are designed for the long term, they often offer some degree of liquidity. You may have the option to make partial withdrawals or surrender the policy.
Best Investment Options for 7 Years
When considering investment options for a 7-year horizon in India, it's important to focus on products that provide a combination of insurance coverage and the potential for reasonable returns. Here are some investment options to consider:
- Unit-Linked Insurance Plans (ULIPs): ULIPs are insurance-cum-investment products that offer both life insurance coverage and investment opportunities in various funds. These plans typically have a lock-in period of 5 years, making them suitable for a 7-year horizon.
- Endowment Plans: Endowment insurance plans are traditional life insurance policies that provide life cover and accumulate a corpus over a specified period. They offer a lump-sum payout at maturity, making them a suitable option for medium-term financial goals.
- Money-Back Policies: Money-back policies are a type of life insurance that provides periodic payouts during the policy term. These payouts can help meet financial needs at various intervals during the 7 years.
- Retirement Plans: Retirement plans are financial strategies and products designed to help individuals save and invest for their retirement years.
- Child Plans: If you're planning for your child's education or future, child insurance plans can be a suitable option. These policies provide a lump sum at the end of the policy term, which can be used for educational expenses.
- Single Premium Policies: If you have a lump sum amount to invest, you can consider single premium life insurance policies. These policies require a one-time premium payment and offer life insurance coverage along with investment benefits.
Top 10 Best Investment Plans for 7-Year
| S.No |
Company Name |
Plan Name |
Policy Term |
|
| 1 |
Aditya Birla Capital Life Insurance |
Assured Income Plus Plan |
5 to 17 Years |
Buy Now |
| 2 |
ICICI Prudential Life Insurance |
Guaranteed Income For Tomorrow Plan |
5 to 20 Years |
Buy Now |
| 3 |
Kotak Life Insurance |
Guaranteed Savings Plan |
5 to 20 Years |
Buy Now |
| 4 |
HDFC Life Insurance |
Sanchay Fixed Maturity Plan |
5 to 40 Years |
Buy Now |
| 5 |
Canara HSBC OBC Life Insurance |
Guaranteed Income4Life |
5 to 15 Years |
Buy Now |
| 6 |
Max Life Insurance |
Smart Wealth Plan |
5 to 20 Years |
Buy Now |
| 7 |
AEGON Life Insurance |
iGuarantee Plan |
7 to 20 Years |
Buy Now |
| 8 |
PNB MetLife Insurance |
Guaranteed Future Plan |
12 to 40 Years |
Buy Now |
| 9 |
Bajaj Allianz Life Insurance |
Guaranteed Pension Goal |
1 Year to 10 Years |
Buy Now |
| 10 |
Edelweiss Tokio Life Insurance |
Income Builder |
6 to 12 Years |
Buy Now |
How to Buy the Best 7-Year Investment Plan
The most effective way to buy the best 7-year investment plan online is through the PolicyBachat website where you can easily compare and contrast different plans, choose the best one for your needs, and save money and time in the process.
- Here are the steps to purchase a 7-year investment plan online at PolicyBachat:
- Visit the official website of the PolicyBachat
- Click on the Investment Plan tab
- Fill in the requested details such as name, mobile number, and email address
- Enter your age and city
- Select your desired insurance quote.
- You should select a plan which suits your requirements.
- Then you can pay for your policy by using an online payment method.
Why Buy an Investment Plan from PolicyBachat
PolicyBachat is an online insurance aggregator that offers a range of investment plans from various insurance companies. Here are some reasons why you may want to consider buying an investment plan from PolicyBachat:
- Wide Range of Plans
- Easy Comparison
- Convenience
- Cost-Effective
- Trustworthy
Case Studies
Case Study 1: Mr. Rahul, a 35-year-old IT professional, wants to secure his family's financial future. He decides to invest in an endowment plan with a 7-year term. Here's his scenario:
- Investment Plan Type: endowment plan
- Premium: Rs. 50,000 per year for 7 years
- Sum Assured: Rs. 10 Lakhs
- Maturity Benefit: Rs. 15 Lakhs at the end of 7 years
- Purpose: Mr. Rahul plans to use the maturity amount to partially fund his child's higher education and to supplement his retirement savings.
Case Study 2: Mr. Verma, a 40-year-old business owner, wants to save taxes while building a corpus for his retirement. He chooses a Single Premium Immediate Annuity (SPIA) with a 7-year payout period:
- Investment Plan Type: Single Premium Annuity Plan
- Premium: Rs. 10 Lakhs as a single premium
- Annuity Payout: Rs. 5k per month for 7 years
- Maturity Benefit: Rs. 10 Lacs
- Purpose: Mr. Verma uses the SPIA to generate a stream of income during his early retirement years while benefiting from tax advantages.
Things to Know Before Investing in a 7-year Investment Plan
Investing in a 7-year investment plan in India requires careful consideration and a thorough understanding of the product and its terms. Here are some key things to know before making such an investment:
- Understand the Purpose: Clearly define the purpose of your investment. Are you primarily seeking insurance coverage with some savings, or is your main goal wealth accumulation? Understanding your primary objective will help you choose the right type of insurance plan.
- Investment Options: There are many different types of investment options to choose from. It's important to consider the pros and cons of each option and select the best one for your needs.
- Know Your Risk Tolerance: Some insurance-cum-investment products like Unit-Linked Insurance Plans (ULIPs) have market-related risks. Assess your risk tolerance and choose a plan that aligns with your comfort level.
- Read the Policy Document: Carefully read and understand the policy document, including the terms and conditions, premium payment schedule, charges, and benefits. Pay attention to the lock-in period and surrender charges, which can impact your ability to access funds.
- Costs and Charges: Be aware of all the costs associated with the plan, such as premium allocation charges, fund management charges, mortality charges, and administrative fees. These can affect the overall returns on your investment.
- Tax Implications: Understand the tax implications of your investment. Different insurance products have different tax treatments, and you should be aware of how your returns will be taxed at maturity or on partial withdrawals.
- Fund Options: If you're investing in a ULIP, research the available fund options and their historical performance. Diversify your investments across equity, debt, and balanced funds to spread risk.
- Flexibility: Check if the policy allows flexibility in premium payments, fund switches, and partial withdrawals. A 7-year horizon may require adjustments along the way, so having flexibility can be important.
- Policy Term: Make sure the policy term aligns with your investment horizon. If you plan to invest for exactly 7 years, choose a policy with a term close to that duration.
- Compare Plans: Don't settle for the first plan you come across. Compare different investment products and their features, and charges at PolicyBachat to find the one that best meets your needs.
Conclusion
A 7-year investment plan can be a powerful tool for achieving financial goals and securing your future. Whether you're saving for a major purchase, funding your child's education, or building a retirement nest egg, this medium-term investment horizon offers a balance between risk and returns. By carefully considering your risk tolerance, diversifying your portfolio, and regularly monitoring your investments, you can harness the potential for growth and financial security over the 7-year journey. So, start your journey today by comparing quotes at PolicyBachat for financial planning.