Grow Your Wealth with Bajaj Allianz Life Insurance Investment Plans

Investment plans are designed to help grow your savings by earning returns on the invested amount, building a substantial corpus for various financial goals. These plans can also serve as effective tax-planning tools, helping reduce tax liabilities. By choosing the right investment plan, you can align your investments with your financial needs and growth aspirations, ensuring long-term financial security and stability for yourself and your loved ones.

INSURANCEBAJAJ ALLIANZ LIFE INSURANCE

Investbegin

6/27/20243 min read

Bajaj Allianz Life Investment plans
Bajaj Allianz Life Investment plans

Grow Your Wealth with Bajaj Allianz Life Insurance Investment Plans

Investment plans are designed to help you grow your savings by earning returns on the invested amount. Over time, these returns can build your savings into a substantial corpus, aiding in the fulfillment of various financial goals. Additionally, investment plans can serve as effective tax-planning tools, helping to reduce tax liabilities. By choosing the right investment plan, you can align your investments with your financial needs and growth aspirations.

Types of Investment Plans

Investment plans come in various forms, each catering to different risk profiles and financial goals. These can broadly be categorized into high-risk and low-risk investment plans:

High-Risk Investment Plans
  1. Equity Shares

    • Description: Stocks issued by companies listed on the stock exchange.

    • Tax Implications: Short-term capital gains taxed at 15%, long-term gains (beyond 12 months) up to ₹1 lakh are tax-free; excess returns taxed at 10%.

  2. Equity Mutual Funds

    • Description: Mutual funds that allocate at least 65% of their capital to equity.

    • Tax Implications: Same as equity shares.

  3. ULIP Equity Funds

    • Description: Equity funds available under Unit Linked Insurance Plans (ULIPs).

    • Tax Implications: Premiums qualify for tax deduction under Section 80C; death benefit is tax-free. Maturity benefit is tax-free if premium conditions are met.

  4. Equity Funds in NPS

    • Description: Market-linked retirement-oriented scheme.

    • Tax Implications: Investment qualifies for tax deductions under Section 80CCD (2) and 80CCD (1B); 60% of the commuted corpus is tax-free, annuity taxed at slab rates.

Low-Risk Investment Plans
  1. Fixed Deposits (FDs)

    • Description: Guaranteed returns on a lump sum amount for a fixed tenure.

    • Tax Implications: Investment in 5-year FDs qualifies for deduction under Section 80C; interest earned is taxable.

  2. Public Provident Fund (PPF)

    • Description: Government-backed savings scheme with a 15-year tenure.

    • Tax Implications: Investments are tax-deductible under Section 80C; interest earned and maturity proceeds are tax-free.

  3. National Savings Certificate (NSC)

    • Description: Fixed-income scheme offered by the post office.

    • Tax Implications: Investments and interest earned in the first four years are deductible under Section 80C; interest earned in the fifth year is taxable.

  4. Kisan Vikas Patra (KVP)

    • Description: Small savings scheme with guaranteed returns.

    • Tax Implications: Investments are deductible under Section 80C; interest earned is taxable.

  5. Sukanya Samriddhi Yojana (SSY)

    • Description: Savings scheme for the financial security of a girl child.

    • Tax Implications: Investments are deductible under Section 80C; interest earned and maturity benefits are tax-free.

  6. Employees' Provident Fund (EPF)

    • Description: Retirement-oriented savings for salaried employees.

    • Tax Implications: Investments are deductible under Section 80C; interest earned is tax-free under certain conditions.

  7. Debt Funds in Mutual Funds and ULIPs

    • Description: Investments primarily in debt instruments.

    • Tax Implications for ULIPs: Premiums qualify for deduction under Section 80C; death and maturity benefits are tax-free if conditions are met. For mutual funds, returns are taxed at slab rates.

Risks and Returns in Investment Plans

Investment plans come with varying levels of risk:

  • Volatility Risk: Fluctuating market prices can lead to potential losses.

  • Credit Risk: Risk of issuer default on repayment.

  • Liquidity Risk: Difficulty in converting investment to cash at fair value.

  • Reinvestment Risk: Lower returns on reinvestment compared to initial returns.

Returns from investments are typically proportional to the risk involved, with higher risks offering the potential for higher returns.

Benefits of Investment Plans
  1. Inculcates Saving Habit: Encourages regular saving and disciplined investment.

  2. Helps in Financial Planning: Aligns investments with financial goals.

  3. Tax Saving: Offers tax benefits under various sections of the Income Tax Act.

  4. Emergency Planning: Provides a fund for unforeseen emergencies.

  5. Helps in Estate Planning: Facilitates planning for a financial legacy.

How to Choose the Best Investment Plan

Consider the following factors when choosing an investment plan:

  • Risk Involved: Align with your risk tolerance.

  • Return Potential: Assess potential returns vis-à-vis risks.

  • Investment Horizon: Ensure the investment aligns with your timeline.

  • Financial Needs: Match investments to specific financial goals.

  • Investment Amount: Ensure affordability of the minimum investment requirement.

  • Tax Benefits: Maximize tax savings through investment choices.

When Should One Start Investing?

The best time to start investing is as early as possible. Starting early allows for a longer investment horizon, benefiting from compounding returns and building a larger corpus over time.

Documents Required for Investing
  • Identity Proof: Aadhaar Card, PAN Card, etc.

  • Address Proof: Utility bills, Aadhaar Card, etc.

  • KYC Documents: As per the investment plan requirements.

Why Bajaj Allianz Life Insurance?

Bajaj Allianz Life Insurance is committed to offering value-packed and innovative products to meet your life goals. Key highlights include:

  • Claim Settlement Ratio: 99.23%

  • Claim Approval Time: 1 day

  • Assets Under Management: ₹1,09,829 Crores

  • Number of Lives Covered: 4.19 Crores

  • Solvency Ratio: 432%

Conclusion

Investment plans offer a diverse range of options to grow your savings and achieve financial goals. By carefully selecting the right investment plan based on your needs and risk appetite, you can create a substantial corpus and ensure financial security for yourself and your loved ones.

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