Every individual engaged in business in India knows the value of making hay while the sun shines. They realise that investments should be made while the inflow of money is high. Those investments will one day come of use in a time of need, when the inflow of money is low or when business is badly affected due to factors beyond one’s control. In essence, they realise the value of short-term investments.
However, the advantages of short-term investments are not restricted to businessmen alone. Even salaried individuals can and should opt for Short-Term Plans, which have the ability to quietly keep vesting while you take care of your family’s expenses.
Short-Term Plans enable investors to start investing when they have little or no liabilities and then stop once loans and familial liabilities don’t allow much savings. What’s more, while traditional plans require you to continue investing for 20+ years, Short-Term Plans avoid this issue altogether.
Let’s understand more:
Short-Term Plans in brief
Short-Term Plans are investment instruments that allow you to invest for a short period (as low as 5 years) and then stop investing when your young family demands the lion’s share of your income. The money that you have invested keeps growing steadily and at maturity, you receive a lump sum that can be used for important milestones like a child’s higher education or marriage, to buy a new car, or even to plan a foreign vacation for the family.
A quick look at the benefits
Short-Term Plans are insurance products offered by all major insurance companies that you can opt for through OneInsure. Here are the benefits of Short-Term Plans:
- Make hay while the sun shines! Short-Term Plans allow you to customize when you want to stop payments and when you want the vesting period to end. Since you can decide these right at the start, this gives you the flexibility to choose preferred terms keeping in mind your specific upcoming milestones and life events.
- Great for Businesspeople – Although Short-Term Plans are a great financial tool for all Indian householders, they tend to be especially preferred by businesspeople because of the nature of their profession and large but inconsistent incomes that are not guaranteed in the long run.
- Great goal-oriented investments – Because of the very nature of Short-Term Plans and the flexibility to choose the policy term at inception, they can be started with certain goals in mind. For example, you can start a Short-Term Plan with an annualized premium of Rs 1 lakh and a premium-payment term of 5 years and a policy term of 15 years when your child is 3 years old. This policy will pay out a good sum of money when your child will be 18 and has to choose a Professional Course after Junior College.
- Tax benefits
Discuss Short-Term Plans with an expert:
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