When talking about financial planning, where to invest. It is important to understand how to keep your money safe. In personal finance discussions, three plans always come up. They are Systematic Investment Plan, Health Insurance Plan, Term Insurance Plan. Let us know how they differ from each other and which one is better for investment.
Systematic Investment Plan
In a systematic investment plan, you invest a fixed amount monthly or quarterly in mutual funds. It is useful for those who want to create wealth in the long run. Like a retirement fund, children’s education or buying a house. It remains stable amid market fluctuations. By costing everything in rupees, a systematic investment plan minimizes the risk of market fluctuations. Its main advantage is that you can start with just ₹500 per month.
Health Insurance Plan
It is not an investment tool, but an important part of financial security. Medical problems come on suddenly. Your savings can be spent quickly. A health insurance plan MyHealth ensures that you or your family are financially secure during hospitalization or surgery. The plan also covers medical bills, room charges, surgery expenses, pre-hospitalization and post-hospitalization expenses based on the policy.
Term Insurance Plan
This plan offers full life insurance. It does not include savings or investment benefits. Its sole objective is to provide financial security to someone’s family in case of sudden death. Under this plan you can get more coverage amount at lower premium.
Which scheme is good for investment?
Each of these three plans has a different but equally important objective. A wise financial plan can include all three in balance. Talking about a systematic investment plan, it helps you grow your wealth over time. Talking about health insurance plan, you can save on medical bills. At the same time, a term insurance plan assures the security of the individual’s family in their absence.
