Get Protection + Monthly Income after Retirement

5 Tips to Choose a Savings Investment Plan

Nov 18, 2019 | 8 months ago | Read Time: 3 minutes | By iKnowledge Team
5 Tips to Choose a Savings Investment Plan

If you are looking for ways to grow your money at a faster rate than traditional bank deposits, a saving investment plan is the right choice for you. This way, you will not only get to save some money every month, but you will also get reasonable returns on the amount saved. When you set out to look for a perfect savings planof this type, you are bound to face the problem of plenty.

This is because there are lots of investment options in the market that promise you great returns. To choose one from them is going to be a daunting task for you, unless you have 100% clarity on your requirements and financial goals. Here are five tips that will help you choose the best plan, so that you can get maximum benefit from it.

  • What are your needs

You should make a checklist of your financial goals and needs for different stages in your life. You can use a savings plan calculatorto derive the value of your investments after a tenure. This will help you understand if that investment is worthy of your money or not. The details that you need for this calculator are the following:

  1. Initial contribution that you can make towards the investment (like a down-payment)
  2. Monthly contribution based on your affordability
  3. Average rate of annual interest
  4. Tenure of the investment

You should also consider factors such as inflation when you are using this calculator to arrive at an approximate value of your plan at the end of the tenure.

  • Risk appetite

If you are looking for a plan that provides you savings, insurance and investment, an ULIP is a great choice for you. Unit-Linked Insurance Plans provide you with life cover (so that your family is financially protected, even in your absence) and good returns (because your contribution is invested in diverse funds).

Choose an ULIP based on your risk appetite. If you are an aggressive risk taker, you can choose a plan that invests wholly in equity. If you are averse to risks, you can choose a plan that invests wholly in debt funds. If you are a moderate risk taker, you can choose a plan that invests in a balanced portfolio.

  • Liquidity

When you choose a plan, check whether you can make partial withdrawals on it. If yes, are there any charges for the same? How soon can you withdraw from the plan commencement date and how much is the ceiling? These are the questions that you should have in mind when you are analyzing an investment plan. When you need money during emergencies, these questions will make you understand if your plan is liquid enough to meet your urgent needs.

  • Understanding the terms

To choose a savings-cum-investment plan that is most suitable for you, you should be thorough about its terms and conditions. You should have 100% clarity about the inclusions and exclusions in it, so that you don’t get disappointed when you make a claim. You should also check for the hidden charges, if any, mentioned in the terms, so that you can avoid being exploited by the service provider.

  • Review and diversify

The golden rule of investment is to never put all your eggs in the same basket. Diversification is the keyword to be followed here. You must review your investment plans annually to understand your risk profile and growth of an investment. You need to diversify your portfolio, as frequently as possible, for maximum returns. Also, putting all your savings in an ULIP is a big no-no. You can create various compartments like bank deposits, insurance plans, ULIP plans, mutual funds and more.  This way, you can offset the loss from one source with the gain from another.

If you are not comfortable doing these reviews by yourself, you should hire a financial planner to do these checks. He will tell you if you are on the right path to achieve your stage-wise financial goals.

To know about Aegon Life’s life insurance products like term insurance and other products, visit our home page.


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
6 Tips to Save for a Structured Savings Plan Looking for a Structured Savings Plan? Get 6 Tips on How to Save
All That You Need to Know About Critical Illness Insurance
Calculate Premium
Do You Smoke?

Date of Birth

Your Monthly Premium for Aegon Life iTerm Insurance Plan