Best Investment Plans for Beginners

If you are new to investments and want to build a corpus for future financial needs and protect your dependents from life’s uncertainties, buy a life insurance cum investment plan. It helps accomplish many financial goals by putting your money in various instruments. At the same time, in case of your unfortunate death during the policy term, your dependents also receive the sum assured amount fixed for the policy. On this page, you’ll learn about the best investment plans for beginners that will help ensure the same. So, read on!

Which are the Best Investment Plans for Beginners?

As a beginner, one would like to invest in plans that offer higher protection with a guaranteed maturity benefit at a low premium. So, the best investment plans for beginners are charted out factoring in these points.

LIC New Endowment Plan

LIC’s New Endowment Plan is a participating non-linked plan that provides you the following benefits during the policy term:

1. In case of death of the life assured during the policy term, the insurer will pay either the base sum assured or 7X the annualized premium, whichever is higher
2. Upon survival till the maturity date, the insurer pays the sum assured on maturity + simple reversionary bonuses + final additional bonus, if any
3. In case the life assured commits suicide within 12 months from the date of policy commencement or revival, the nominee will be entitled to at least 80% of the paid premiums or the surrender value, whichever is higher

You can enhance this plan coverage by adding any of the following riders to it:

1. Accidental Death and Disability Benefit Rider
2. Accident Benefit Rider
3. New Term Assurance Rider
4. New Critical Illness Benefit Rider
5. Premium Waiver Benefit Rider

SBI Smart Bachat Plan

SBI Smart Bachat Plan is a non-linked participating life insurance savings plan that provides you benefits –

1. Basic sum assured + vested simple reversionary bonuses + terminal bonus, if any, on the maturity date
2. The insurer will pay higher of the following to the nominee in case of your death during the policy term
3. Sum assured on death + vested simple reversionary bonuses + terminal bonus (if any) and 105% of the total premiums paid
4. In case of accidental death, an additional amount equal to the basic sum assured will be payable to the nominee along with the above-mentioned death benefit
5. In case you suffer from total permanent disability due to an accident, all future premiums shall be waived and the policy benefits will continue till the maturity date, surrender or death, whichever happens first.
6. The nominee will receive either 80% of the paid premiums or the policy surrender value, whichever is higher, if you commit suicide within 12 months from policy inception or revival date.
7. The minimum sum assured is INR 1 lakh and with no limit set for the maximum sum assured

Bharti AXA Life Super Endowment Plan

Bharti AXA Life Super Endowment Plan provides you the following benefit at different time intervals or situations during the policy term –

1. Upon survival a year before maturity, the insurer will pay a survival benefit equal to the accrued Guaranteed Additions (GA). The GA is equal to 10% of the sum assured.
2. At maturity, the insurer pays the sum assured
3. In case of an unfortunate event of death during the policy term, the nominee/beneficiary will be entitled to the sum assured on death, which is highest of the following –
4. 11X annualized premium
5. 105% of the total paid premiums till the date of death
6. Absolute amount assured to be paid on death
7. Sum assured on maturity

Note – Death Benefit will be reduced by the already paid survival benefit if any.

HDFC Life Click 2 Wealth

Under this unit-linked, non-participating, life insurance plan, you’ll get financial protection for you and your family by offering the following benefits –

1. Gives 1% of the annualized premium addition to your policy fund value for the first 5 years
2. Premium waiver benefit to protect milestones for dependents
3. Choice of 10 fund options with unlimited switching
4. You will receive your Fund Value, calculated by multiplying balance units of your fund at the prevailing unit price, on the maturity date.

The death benefit payable under HDFC Life Click 2 Wealth Plan will be the highest of the following:

1. Total Sum Assured – Partial Withdrawals if any.
2. Fund Value
3. 105% of the Total Paid Premiums

The minimum premium amount for this plans is as follows:

1. Single – INR 24,000
2. Annual – INR 2,000
3. Half-yearly – INR 6,000
4. Quarterly INR 3,000
5. Monthly – INR 1,000

Bajaj Allianz Future Gain

Investments in Bajaj Allianz Future Gain ensures you the following benefits:

1. At the end of the policy term, the insurer will pay an amount equal to your Regular Premium Fund Value plus the Top-up Premium Fund Value
2. In case of the death of the life assured, the insurer will pay higher of the prevailing Sum Assured or Regular Premium Fund Value plus the higher of the Top-up Premium Sum Assured or Top-up Premium Fund Value if any; as on the date of the receipt of intimation of death.
3. You can decrease the Sum Assured as per your preference

The minimum premium amount for Bajaj Allianz Future Gain Plan is as follows:

1. Yearly – INR 25,000
2. Half-yearly – INR 13,500
3. Quarterly – INR 7,000
4. Monthly – INR 2,500
5. Top up – INR 5,000

Bharti Axa Life Wealth Pro

Under Bharti Axa Life Wealth Pro, the insurer will pay the highest of the following to the nominee in case of death of the life assured:

1. Sum assured less all partial withdrawals (prior 2 years)
2. Policy fund value plus loyalty additions, if any
3. 105% of the total paid premiums

Upon survival till the maturity date, you will receive either  

1. Policy fund value + return of mortality charge + return of allocation charge + wealth booster (Growth variant)
2. Policy fund value + loyalty addition + wealth booster (Legacy variant)

You can enhance the policy benefits by opting for any of the following riders 

1. Hospital Cash Rider
2. Accidental Death Benefit Rider
3. Premium Waiver Rider
4. Term Rider

The minimum sum assured is INR 1.25 lakh (Single Pay) and INR 2.50 lakh (limited or regular pay).