Find out the 5 Best Long Term Investment Options in India

Here are some of the best long-term investments options in India that can secure you financially.

1. Endowment policy
   The endowment policy is quite similar to a term insurance policy, with a difference of having a saving component as well. This saving component offers an extra benefit to the policyholder as it increases the pay-out by a considerable amount. This means that you can save more over a certain period of time as well as get a life cover till that specified period. Thus, with the combined benefit of insurance coverage and savings, it becomes quite lucrative among the salaried as well as non-salaried individuals.
   
   
2. Unit Linked Insurance Plan
   This plan is primarily concentrated on creating wealth in the long-term, along with life cover. It bifurcates the premium into two parts, one of which is to be used for the purpose of life insurance while the other is invested in the market in order to build your wealth. A policyholder also has the option to choose the ratio of allocation for investments in stock or debt markets. The value of the investment portfolio is captured by the NAV (Net Asset Value).
   With the dual benefits of wealth creation and term life cover, ULIPs help channelise the insured’s money into appropriate investments while ensuring that, in case of insured’s death, the family can avail a death benefit as well as return on investment.
   
   
3. Money Back Policy
   Here, the plan is specifically focussed for those individuals who desire to get regular pay-outs over the period. This percentage of the sum assured varies from company to company; however, it can also be customised as per your convenience. The saving component is quite similar to the endowment plan. The rest of the money, which has not been paid to the insured person, is given when the policy matures or on the death of the policyholder. This unique combination of survival, as well as death benefits, helps the policyholder meet the regular expenses as well as safeguards the financial well-being of their families.
   
   
4. Comprehensive Life Policy
   Unlike other insurance policies that expire with a specified period of time, this policy has a coverage extending to the whole life span of the insured. There is also an option to get survival benefit in this plan as per your requirements. In addition, as a policyholder, you can also partially withdraw the insured sum after a certain period. Moreover, there is an option for a loan as well that can be taken against the insured sum.

Conclusion

Along with the mentioned benefits, all these long-term investment options offer tax benefits under the Indian Income Tax Act. The amount of premium paid is deductible under Section 80C while the sum assured pay-out is tax-exempt under Section 10 (10D).
Before you invest in these instruments, it is imperative to we realise that certain features vary with every insurance company, based on factors, like age, gender, medical history, claim settlement ratio (CSR), etc.
In addition, one also needs to thoroughly read the policy document before buying in order to understand the exclusions and inclusions present in the investment plan. Due diligence is crucial to ensure that you avail the best life cover and secure the financial future of your family.
To know more long term savings plan and mera term plan visit PNB MetLife website