What are Investment Plans?

Investment Plans are Life Insurance Plans which also act as a secure way to save, invest and grow your money, in addition to providing Life Cover for your loved ones.

WishPolicy brings you different types of Investment Plans depending on your stage in life, desired rate of return, payout expectations and life goals. The two main categories are Unit Linked Insurance Plans (ULIP) and Guaranteed Return Plans. Want to know more?

Get personalize quote arrow

Benefits of Investment Plans

An Investment for Life Turn your Premiums into an Investment that secures your Family in case of your untimely death. If no death occurs, get your money back along with returns, at the end of the policy tenure!
Guaranteed Return Plan Get your money back at the end of the policy period - Guaranteed! Your sum is 100% assured and completely safe from any sort of uncertainty. This is one of the most secure way to invest your savings as well as protecting your family’s financial future.
Unit Linked Investment Plan (ULIP) ULIPs are for those who want to enjoy returns similar to stocks, bonds, mutual funds, etc with the additional benefit of Life Cover. Though returns may be subject to market factors, ULIPs are good for Wealth Accumulation or investing for specific life goals such as Children’s Education, Retirement, etc
Tax Benefits Traditional Investment Plans can give you Tax Benefits under Sec 80C, Sec 10(10D). Plus, the payouts of the policy are tax-free!*
Loan Against Policy If you need to borrow money some time during the Policy period, your Policy can act as collateral or security. The eligibility and rate of interest offered varies from company to company.

Best Investment Plans

These Plans are hot right now and might interest you...

No Plan selected yet as best plan

Investment Plans

Investments when made as per your risk appetite and desired time horizon help you accumulate the desired corpus to achieve your various financial goals - marriage & education of kids, retirement money, etc. Amongst the investment options available for these purposes, life insurance cum investment plans remain a good choice. The reason being these plans provide you a life cover while also helping you earn a return of sorts on the premium you pay to the insurer. Sounds like a win-win!

With a life cover, your family members will get the lump sum amount (sum assured) in case you die during the policy term. These plans come with maturity payouts such as loyalty additions, bonuses, etc. Various wealth boosters are also included in these investment plans to raise your corpus and help achieve your financial goals easily.

What are the Features & Benefits of Life Insurance Cum Investment Plans?

Let's check how the benefits of these plans could help you in financial planning.

  • Life Cover : The motto of any life insurance plan is to give security cover to your loved ones in your absence. Although there is a sum assured fixed for the same, the actual amount payable may be higher than that. Yes, insurance companies, most likely, pay the highest of the following upon the death of the insured -
    • Absolute Sum Assured
    • 7 or 10 Times the Annualized Premium
    • 105% of the Total Premiums Paid
  • Loyalty Additions : The best part about these investment plans is the loyalty addition that gets added after a certain period. Such additions increase your wealth and provide you the corpus you need to meet your financial goals. These additions come as a certain percentage of the sum insured and can vary from one insurer to another.
  • Wealth Boosters : Some life insurance cum investment plans put your money in equities, bonds, etc, besides earmarking a certain percentage towards your life cover. So your investments boom with the rise in the value of stocks and bonds.
  • Bonus Payments : Some life insurance plans also offer bonuses to investors as and when they are declared by the insurance company. Bonuses could be a certain percentage of the sum assured or a flat amount.
  • Tax Benefits : These plans also offer you tax benefits on the premium payable and maturity proceeds under Section 80C and 10 (10D) of the Income Tax Act, respectively. Besides, there are no taxes on the amount received upon the death of the insured during the policy term.
  • Loan Facility : You can get a loan against traditional life insurance plans such as endowment plans. However, the loan is available only when the policy acquires a surrender value, which remains the case after paying the premium without fail for 2-3 years. The maximum loan amount can be anywhere around 70-80% of the surrender value. What's good is that the interest rate for the same remains lower than that of unsecured loans.

How to Choose the Best Investment Plan Online?

Choosing the best investment plan will require comparing different options based on life cover, likely investment proceeds, the risk appetite you have, etc. We can help you choose the best one by highlighting each of these points below. Let's check them without any further delay.

  • Assess the Needs of Your Family Accurately :

    Assessment of your family's needs in your absence is the due diligence you must do before buying an insurance cum investment plan. You won’t like to see your family members compromising on their lifestyle after your death. Your current income level may have been allowing your dependents to carry out their ongoing lifestyle. But can that income ensure the same in your absence too? Maybe not! The growing inflation will make it insignificant over time. So, choose the sum assured wisely to get adequate financial security for your family. Keep the sum assured to around 15-20 times your yearly income or add 5-6% to your annual expenses every year to calculate the ideal coverage amount. The plan that gives such a sum assured is the one for you.

  • Check the Premium Outgo for Different Plans :

    Once you have found some 4-5 plans offering you the sum assured you seek, see which one charges you less on the premium front. The premium depends on the policy term, premium payment frequency, administration charges, if any, etc.

  • See Which Plan Comes with Flexible Premium Payment Terms :

    Life insurance cum investment plans come with different premium payment terms - single, regular and limited pay. A single premium plan means you need to pay only once throughout the policy term. Regular pay means the payment of premiums will happen throughout the policy term. Limited pay, on the other hand, comes with a premium payment term less than the policy term. So, if the policy term is 25 years, you may have to pay the premium for only 15 years. But don’t get the impression that limited pay will be better than single and regular pay. Single pay premiums can be very high and beyond many. Also, the premium amount for limited pay plans can be higher than that of regular plans. So, check which makes you pay less overall and gives you the maximum benefits.

  • Assess Your Risk Appetite :

    As these life insurance plans invest your money in different instruments with varying risk levels, it’s important to assess your risk appetite. Some plans would invest heavily in equities to generate higher returns, but at the expense of greater risks. Whereas some plans invest in fixed income instruments offering guaranteed returns. Now, it depends on how much risk you can afford. If you can afford high risks, investing in a Unit-linked Insurance Plan (ULIP) will be better. Someone with a low-risk appetite would find investing in endowment plans more appealing. See the kind of person you are in terms of taking risks and choose your investment plan accordingly.

Which are the different types of Investment Plans?

Investment plans are broadly categorized into the following -

    • Unit-linked Insurance Plans
    • Endowment Plans
    • Money Back Plans
    • Child Investment Plans
    • Retirement Plans

What are Unit-Linked Insurance Plans

These plans offer a unique combination of life cover and investment benefits. A part of the premium paid by you is invested towards securing the sum assured promised in your absence, while the other part is invested in equities, debts or both to generate some returns. You will get a list of funds to choose from. You could see where the fund will invest your money. So, if the fund invests more in equities, go for it when your risk appetite is very high. In case you have a low to moderate risk appetite, choose a fund that invests predominantly in debt instruments. You can also use the ‘Switch’ facility to mobilize your money between equity and debt. The fund’s performance depends on the returns generated by its underlying securities. Here, the investment risk is fully yours, so choose the fund carefully to have a smooth ULIP experience. At maturity, you will receive a policy fund value based on the prevailing price of the units held in a portfolio

  • Charges of ULIPs :

    ULIPs come with a host of charges that get deducted from the gross returns of the fund you choose to invest in.

  • Premium Allocation Charges : A certain percentage of the premium amount is charged by the insurer towards underwriting costs, intermediary fees, etc. After accounting for these charges, the remaining premium is invested in the fund you choose. For example, if the premium allocation charge is 15% and the monthly premium amount is INR 8,000, the insurer will set aside INR 1,200 (8,000 x15%) for the costs mentioned above. The rest INR 6,800 will get invested.However, the premium allocation rate will come down with time and could even be ZERO after 5-7 years of the policy.
  • Mortality Charges : These charges include the cost of insurance coverage and depend on your age, sum assured, etc. Insurers deduct such charges every month proportionately from the funds you have chosen.
  • Fund Management Charges : The insurance company charges a fee to manage the fund/s chosen by you. So, the net asset value (NAV) of the fund is arrived at after deducting this charge. It gets deducted daily and cannot exceed 1.35% per annum of the fund value. Charges are more on equity funds compared to their debt counterparts.
  • Policy Administration Charges : These charges are levied by the insurer monthly towards the administration of the policy by the cancellation of units held in the chosen funds. The charges might remain the same throughout the policy term or differ at a predetermined rate.
  • Charges on Partial Withdrawals : As discussed above, ULIPs allow individuals to withdraw partially after a lock-in period of 5 years. While some plans offer unlimited partial withdrawals, others keep it to a maximum of 2-4 times during the policy term. Withdrawals made by the investors can come free of cost up to a certain limit. Once that limit is crossed, the insurance company will levy a charge on withdrawals. You might come across some plans where there is no charge on withdrawals, irrespective of how many times you do the same.
  • Fund Switching Charges : Switching means the movement of money between different funds to reduce the impact of market volatility on returns. The insurance company will give you limited free switches and start charging around INR 100-500 per transaction once you cross that limit. The charges for the same will get deducted by the proportionate cancellation of units from the chosen funds.
  • Premium Redirection Charges : Sometimes you may like to redirect premiums to a less risky fund without changing the structure of the existing funds. Such redirections come free of cost up to a certain limit. Afterward, you will be charged INR 100-250 per redirection.
  • Premium Discontinue Charges : If you discontinue premium payments in the initial five years, the insurer will levy a discontinuance charge and lock your money in a discontinuance fund. The quantum of charge will depend on the premium amount. Let’s check out below the premium discontinuance charges.
Policy Year Discontinuance Charges for Annual Premiums >INR 25,000 (In INR) Discontinuance Charges for Annual Premiums<=INR 25,000 (In INR)
First 6,000 3,000
Second 5,000 2,000
Third 4,000 1,500
Fourth 2,000 1,000

Note : Some ULIPs may not charge for policy administration, premium allocation, etc.

Compare Best Unit-Linked Insurance Plans

So, if you are eyeing higher returns and can afford greater market risks, these are the ULIPs from which you can choose the one for you.

Policy Name Sum Assured Fund Options Policy Term (In Years) Premium Amount (In INR) Loyalty Addition Rate
Aegon iInvest Minimum - When the entry age is less than 45 years - Higher of 10 times the annualized premium and 0.5 x policy term x annualized premium When the entry age is 45 years and above - Higher of 10 times the annualized premium and 0.25 x policy term x annualized premium Bluechip Equity Fund Stable Fund Accelerator Fund Opportunity Fund Secure Fund Debt Fund 10/15/20/25 Starts from 2,000 per month 1.70-1.80% of the sum assured
Max Life Online Savings Plan Variant 1 Highest of - cover multiple times the annualized premium 0.5 times the policy term x annualized premium 105% of total premiums received till the date of death Total fund value as on the date of death High Growth Fund Super Growth Fund Growth Fund Balanced Fund Secure Fund 5-20 Starts from INR 1,000 per month
Aviva i Growth 6,00,000 - 50,00,000 Bond Fund - II Balanced Fund - II Enhancer Fund - II 10/15/20 Starts from 48,000 per annum 1.25-3% of the sum assured Available in the last three years of the chosen policy term
HDFC Life Click 2 Invest 7 times the annualized premium (When the Entry Age is more than 55 years) 10 times the annualized premium (When the Entry Age is less than or up to 55 years) Single -Premium Policies - 1.25% of the single premium Equity Plus Fund Diversified Equity Fund Opportunities Fund Balanced Fund Income Fund Bond Fund Conservative Fund Discovery Fund Equity Advantage Fund Secure Managed Fund 5-20 Starts from 1,000 per month

What are Endowment Plans?

Endowment plans invest your premium towards life cover and savings. Upon the death of the insured, the nominee/s will get the sum assured as promised at the time of policy inception. Further, the future premiums get waived. Besides, these plans help build your savings over time by investing your money in instruments offering guaranteed returns. Endowment plans come in several variants -

    • Unit-linked Endowment Plan
    • Full/With Profit Endowment Plan
    • Non-profit Endowment Plan
    • Low-cost Endowment Plan
  • Unit-linked Endowment Plan : The premiums invested under this plan are distributed into multiple units held with a specific investment fund as chosen by the policyholder.
  • Full/With Profit Endowment Plan : This plan guarantees a basic sum assured amount to the policyholder. But the final payment goes up due to the bonuses declared by the company from time to time. These bonuses could be paid either on the death of the policyholder or the maturity of the policy.
  • Non-profit Endowment Plan : It does not participate in the profits of the insurance company. And as a result, there are no bonuses. But you do get guaranteed additions as a certain percentage of the sum assured.
  • Low-cost Endowment Plan : It allows the policyholder to accumulate funds that he/she will get paid after a specified period.

Which are the Best Endowment Insurance Cum Investment Plans?

After having a brief on endowment plans, let’s check, compare and choose from the best ones in this life insurance segment

Policy Name Sum Assured Policy Term (In Years) Premium Amount (In INR) Maturity Benefit Payout
HDFC Life Sanchay Plus The highest of - 10 times the annualized premium 105% of the total premiums paid Guaranteed sum assured on maturity An absolute amount payable at the time of death 6-20 Starts from 2,500 per month Maturity benefits payable as a lump sum for lifelong after the policy period, or for a specified number of years post the policy term
Aviva Guaranteed Income Plan 20 times the annual premium 15 Starts from 50,000-75,000 per annum 11 annual installments of 1.2 times the annualized premium at the end of each year after maturity
Max Life Monthly Income Advantage Plan Minimum - 54,000-4,05,000 16-45 Starts from 25,000 per annum Accrued compound reversionary bonus, if any, terminal bonus
Canara HSBC OBC Guaranteed Savings Plan The highest of - 11 times the annualized premium 105% of the total premiums paid Guaranteed sum assured on maturity An absolute amount payable at the time of death 10-20 Starts from 20,000 per annum Guaranteed sum assured on maturity, guaranteed yearly additions, guaranteed loyalty additions

What are Money Back Plans?

As the name suggests, money back plans return the money you pay as premiums, to you at regular intervals. A certain percentage of the sum assured, known as survival benefits, is paid to the policyholder at predetermined intervals. At maturity, the remaining amount left from the actual sum assured is paid. These plans, usually, participate in profits and, therefore, bonuses are paid either upon the death of the policyholder or at the time of policy maturity.

How Do Money Back Plans Work?

The working of money back plans can be best understood with an example. Let’s consider the one mentioned below.

Example - You buy a money back plan that offers a sum assured of INR 20 lakh with a policy term of 20 years. If you opt for a regular premium payment plan having a survival benefit of 15% after every 5 years, you will get a sum of INR 3,00,000 (20,00,000 x15%) at the end of the 5th, 10th, 15th and 20th policy year. In case you die in the 17th year of the policy, the nominee will receive a sum assured of INR 20 lakh along with the bonus that would accrue.

Which are Best Money Back Plans?

If you want to choose a money back plan after reading its features and benefits, glance at the list below and pick the one that suits you the best.

Policy Name Sum Assured Policy Term (In Years) Premium Amount (In INR) Survival Benefit Maturity Benefit
Aviva Dhan Samruddhi Minimum - 2,65,000-4,00,000 10-20 Starts from 3,109 per month 125% of one year’s premium at the end of every 5th policy year, except at maturity (Sum assured + guaranteed additions till maturity) less the payout of survival benefits
Bajaj Allianz Cash Assure Plan Minimum - 1,00,000 16/20/24/28 Starts from 6,500 per annum 15%/20%/25%/30% of the sum assured depending on the policy term you choose 60% of the sum assured plus vested bonus (if any) +terminal bonus (if any)
HDFC Life Super Income Plan Minimum - 18,457-76,198 15-27 Starts from 2,000 per month 3.84-12.50% of the sum assured on maturity during the payout period Last survival benefit amount Accrued Reversionary Bonuses Interim Bonus (If Any) Terminal Bonus (If Any)
Aegon Life Regular Money Back Insurance Plan Limited Pay Plans - Higher of 10 times the annualized premium and absolute sum assured amount Single Pay Plans - Higher of 1.25 times the single premium and sum assured 10-20 15% of the sum assured at the end of 10th to 19th policy year Accrued Bonus + Terminal Bonus, if any

Child Investment Plans

Securing the future of your child must be your top priority. And it is possible with a life insurance plan. You get a life cover in case of your unfortunate death, while your children receive the financial support to pursue his/her studies without any delay. The life cover amount will come in a lump sum while the children will get flexible payouts upon the completion of key milestones in their study life. These plans often come with an in-built premium waiver upon the death of the children’s parents. It means the future premiums will get waived off. However, if there is no such waiver integrated into the plan, opt for a premium waiver rider. The inclusion of the rider will raise your premium by some amount.

Policy Name Sum Assured Policy Term (In Years) Premium Amount (In INR) Survival Benefit Maturity Benefit
HDFC Life YoungStar Udaan - Child Plan Highest of - Sum Assured on Maturity 10 times the annualized premium for people with an entry age up to 50 years 7 times the annualized premium for people with an entry age of more than 50 years Highest of - 10 times the annualized premium Sum Assured on Maturity 105% of the total premium paid 15-25 Starts from 2,000 Monthly This benefit applies for the last 5 policy years Academia Option -15% of the Sum Assured payable 1-4 years before maturity and 30% on the 5th year Career Option - 15% of the sum assured on each of the last 5 policy years Aspiration Option - 100% of Sum Assured + Guaranteed Additions at 25% of the Sum Assured Academia Option - 130% of the Sum Assured Career Option - 140% of the Sum Assured
Aviva Young Scholar Secure Highest of - 10 times the annualized premium Sum Assured on Maturity 105% of the total premium paid 21 minus the entry age of the child Starts from 33,000 per annum 15,000-30,00,000 towards tuition fee and college admission fund (The payout quantum depends on the chosen plan variant) Maturity Sum Assured minus the amount already paid towards tuition fee and college admission fund (The payout quantum depends on the chosen plan variant)
Aditya Birla Sun Life Insurance Vision Star Plan (Option A) 1,00,000 to more than 8,00,000 14-23 Not specified by the insurer. It will depend on the policy term, premium payment frequency, sum assured chosen, etc. Benefits payable from the 5th year after the completion of the premium payment term 20-30% of the sum assured Accrued Bonuses and Terminal Bonus, if any
Bajaj Allianz Young Assure Plan 105% of the premiums paid till death 10/15/20 Based on the chosen guaranteed maturity benefit, policy term, age, premium payment frequency and premium payment term Guaranteed Maturity Benefit + Guaranteed Additions + Vested Bonus + Interim Bonus (if any) + Terminal Bonus (if any)

What are Retirement Plans?

Retirement brings a halt to the regular income that you earn during your working days. However, you can keep it intact even at that time by investing in a retirement plan while you are working. These are basically pension plans that also come with a life cover to secure the future of your dependents in your absence. Choosing the best retirement plan will help you beat the effects of inflation and live peacefully.

  • What are the Basics of Retirement Plans?

    Policyholders of retirement plans are called annuitants who receive regular income to sustain their lifestyle. The premium payable for the plan goes on to purchase annuities, which you can receive at any of the intervals you want - Monthly, Quarterly, Half-yearly and Annually. With these plans, you will receive a guaranteed income from the Vesting Age you choose. The vesting age is the time from when you start receiving the annuity payouts. Usually, the vesting age starts from the 45th or 50th year of one’s life. The flexible premium payment terms - single, regular and limited - and tax benefits add to the cheer of investors putting their money in these plans. These plans come in the following types -

    • Single Life with Return of Premium - It will ensure regular income throughout your life. And if you die, your nominees will get the amount invested as an annuity
    • Single Life without Return of Premium - Regular income payout happens throughout your life
    • Joint Life with Return of Premium - It ensures income payouts for both you and your spouse till the survival of any of the two. Upon the death of both, the nominee will receive the amount invested as an annuity
    • Joint Life Without Return of Premium - Regular income payout will happen throughout your life.

Note : Regular income payouts will happen from the chosen ‘Vesting Age’.

Which are the Best Retirement Plans?

Finding the best retirement plan is easy from the list shown in the table below. Check the details of the following retirement plans and see which serves your purpose the best way.

Policy Name Sum Assured Minimum Purchase Price of Annuity (In INR) Policy Term (In Years) Entry Age (In Years) Annuity Payout per Installment
HDFC Life Pension Guaranteed Plan Immediate Life Annuity - NIL Immediate Life Annuity with Return of Purchase Price Variant - 100% of the purchase price of the annuity Deferred Life Annuity with Return of Purchase Price Variant - Higher of Purchase Price + Guaranteed Additions - Total Payment of Annuity Till Death and 110% of Purchase Price Immediate Life Annuity - 42,076 Immediate Life Annuity with Return of Purchase Price Variant - 1,60,261 Deferred Life Annuity with Return of Purchase Price Variant - 76,046 10-20 Minimum - 30 Maximum - 85 Starts from INR 12,000 annually
Max Life Guaranteed Lifetime Income Plan Immediate Annuity for Life with Death Benefit - 100% of Single/Top-up Premium, if any Deferred Annuity - Higher of - Single Premium + Top-up Premium ( if paid during the deferment period) + Accrued Guaranteed Additions and 105% of Single Premium + Top-up Premium ( if paid during the deferment period) Starts from 12,000 per annum (Single Premium) Minimum - 0-45 Maximum - 80 Starts from 12,000 per annum
Bajaj Allianz Retire Rich Higher of - Fund Value as on the date of receipt of death intimation And Guaranteed Death Benefit at 105% of the Total Premium Paid, including the payment of the top-up premium till the date of death Starts from 50,000 per annum (Regular and Limited Pay Premium Options) 50,000-1,00,000 (Single Premium Option) 7-30 Minimum - 30 Maximum - 73 Years Higher of - Guaranteed Vesting Benefit and total fund value as on the date of death Where Guaranteed Vesting Benefit equals 101% of the sum of all premium and top-up premiums (if you have paid till the date of vesting)
PNB MetLife Guaranteed Future Plan Limited Pay - 10 times the annualized premium Single Pay - 1.25 times the annualized premium Single Pay - 2,00,000 Limited Pay - 12,000, if you get the policy through POSP, and 24,000 through modes other than POSP 12 to more than 18 Minimum - 0-6 years from the last birthday Maximum - 60 for policies bought through POS) and 55 for policies sourced through modes other than POS Guaranteed income payout - Accrued Guaranteed Additions and Annualized Premium

In which instruments do Investment Plans put your money in? Simply put, where do Investment Plans put your money?

You may broadly know the instruments where these investment plans invest your premium. But it’s always better to know the detailsl. While ULIPs invest in equities, debts or a combination of both, endowment and money back plans do so in instruments (which could be bonds issued by the government, corporate, etc.) offering guaranteed returns.

Equity investing can be made in stocks of companies with different market capitalizations - small-cap, large-cap, mid-cap and even multi-cap.

Large-cap stocks come under the Top 100 stocks according to market capitalization. Stocks falling from 101 to 250 in terms of market capitalization are called mid-cap stocks, while those after are called small-cap stocks. Whereas multi-cap stocks invest across market capitalizations are thus considered the diversified lot.

The debt instruments involved in ULIP investments include bonds, debentures, money-market securities, etc.

What is the Risk Return Ratio of Underlying Securities Held in these Investment Plans?

Stock investments are considered riskier than their debt counterparts. Any economic, international and political development can cause volatility in stocks, leading to ups and downs in their prices and impacting the returns of investors. Favourable movements take stocks to new highs, while unfavourable ones reduce their value. So, the risk element and return probability remain high when investing in stocks. But the risk-return ratio can still differ across stocks because of the variation in the company’s fundamentals, operating performance, etc.

Multi-cap stocks give you the diversification you seek in equity investments. As investments here are floated across stocks of different market capitalizations, the dip in some stocks can be greatly compensated by the rise in others.

Large-cap stocks invest in companies with strong business fundamentals and are a good bet for long-term investments. These are blue-chip stocks where the return may not be very high but would remain stable. Customers with a moderate to high-risk appetite could find large-cap stocks suitable to invest in.

Mid-cap stocks invest in companies falling right after large-cap ones in terms of market capitalization, as pointed out above. The risk element when investing in mid-cap stocks remains higher than that of their large-cap counterparts. On the return front, mid-cap stocks can offer more.

Small-cap stocks invest predominantly in small-scale companies offering immense potential for growth. However, the risk element involved in these stocks is very high. The return from these stocks can be very high too when the broader market does well and not so when it does not.

What are Debt Investments?

ULIPs invest in debt instruments such as bonds, debentures, etc, as stated above. A bond is a contract between the issuer and the buyer where the former pays a fixed interest to the latter at regular intervals. Bond issuers can be government, agency, corporations, etc. Various types of bonds are - Zero-Coupon Bonds, Corporate Bonds, G-sec Bonds, Inflation-linked Bonds, Sovereign Gold Bond, RBI Bonds and Convertible Bonds. Let’s talk about these types.

Zero-Coupon Bonds - These bonds are issued at a discounted rate from the face value but are redeemed at the latter at maturity. So, if the bond with a face value of INR 100 is issued at a discounted rate of INR 95, you will get the principal amount at INR 100 only, along with accrued interest.

Corporate Bonds - Bonds issued by companies to raise money from the public are called corporate bonds. Companies pay back the borrowed money along with interest.

G-sec Bonds - These bonds are issued by the government for specific periods and are considered the safest to invest in.

Inflation-Linked Bonds - The principal and interest of these bonds are indexed according to inflation. So, the money receivable from these bonds is adjusted to inflation.

Sovereign Gold Bonds - The Government of India issues these bonds to help you buy digital gold. Investment in these bonds helps you make the most of gold appreciation and earn an interest of 2.50% per annum.

Convertible Bonds - Investing in these bonds give you the option to convert your bonds into stocks issued by the same company. The price at which shares are issued is called conversion price, which is calculated based on factors such as the existing book value, market price, etc. Usually, the conversion price remains higher than that of a convertible bond, allowing you to make profits.

RBI Bond - The Government of India has started issuing Floating Rate Savings Bonds (Taxable) 2020 from July 1, 2020, to help resident Indians and Hindu Undivided Families (HUFs) to invest in the same. The issue price of the bond is INR 1,000, while there is no maximum investment limit set for this bond. The bond comes with a lock-in period of seven years from the date of its issuance. You will get the accrued interest on your bank on the first of Jan and July every year.


Debentures are movable properties that remain in the form of a certificate of indebtedness of the company. These instruments come with a fixed rate of interest that you will get every year. Debentures are classified based on convertibility, security, redemption and registration. Following are the types of debentures where your money could be routed via ULIPs.

    • Non-convertible Debentures
    • Partly Convertible Debentures
    • Fully Convertible Debentures
    • Optionally convertible debentures
    • Secured Debentures
    • Unsecured Debentures
    • Redeemable Debentures
    • Perpetual or irredeemable Debentures
    • Registered Debentures
    • Bearer Debentures
  • Non-convertible Debentures - These debentures cannot be converted into preference or equity shares. You can redeem these debentures only upon maturity.

  • Partly Convertible Debentures - A part of these debentures gets converted into shares upon the notice of the issuer in the future. The conversion ratio is decided by the issuer at the time of subscription.

  • Fully Convertible Debentures - These debentures can be converted fully into equity or preference shares after a specified period at an exchange rate. In this case, debenture holders no longer remain the creditor of the company and rather become shareholders.

  • Optionally Convertible Debentures - These debentures give holders the option to convert their holdings into equities. The conversion price needs to be mutually agreed upon between the issuer and debenture holders.

  • Secured Debentures - Investing in these debentures can help you recover the interest and principal amount in case the issuer defaults on the same. The reason being there is a charge on the fixed assets of the company. And in case of default, you can sell the assets to recover the borrowed amount.

  • Unsecured Debentures - These debentures remain unsecured as one cannot sell any asset to recover principal or interest in case the company defaults on either of them.

  • Redeemable Debentures - These debentures offer investors the option to redeem on demand, after serving a notice, at a fixed date or by using the system of periodical drawing. Post redemption, these debentures can be either cancelled or reissued.

  • Perpetual or Irredeemable Debentures - Issuers won’t have a fixed time to repay their debt raised through these debentures. Debenture holders cannot ask the company to pay interest or principal unless it defaults on the payment. In case the company goes into liquidation, it will have to pay all debenture holders whether they hold redeemable or non-redeemable securities.

  • Registered Debentures - These debentures are registered for an individual whose name appears on the debenture certificate. Transfers of these debentures can be made the same way as shares through proper instruments such as stamp duty.

  • Bearer Debentures - These debentures can be transferred merely by delivery and are payable to the bearer of the instrument.

Money-market Instruments

These are debt instruments that companies issue to improve their liquidity position. The best part about these instruments is their ability to get converted into cash. Fixed returns and increased security call for investment in these instruments that can be any of the following -

    • Certificate of Deposit
    • Commercial Paper
    • Treasury Bills
    • Repurchase Agreements
    • Banker’s Acceptance

Certificate of Deposit - Banks and financial institutions issue a certificate of deposit (CD) that offers a fixed rate of interest on the invested capital. CDs can mature in 7 days to 3 years.

Commercial Paper - Large companies issue promissory notes i.e. commercial paper to meet their short-term business needs. CPs come with a fixed maturity period of 7 to 270 days.

Treasury Bills - These are issued by the Reserve Bank of India (RBI) on behalf of the Central Government to raise money. Treasury bills come with maturities of 91 days, 182 days and a year. These bills are offered at a discounted rate of face value. However, investors get the face value at maturity. The rate differential is the earning for the investor. As they are backed by the Government of India, they are considered the safest investment for the short term.

Repurchase Agreements - As per these agreements, one party agrees to sell the security to another with an eye on buying it back from the buyer at a later date. The seller buys the security at an amount including the interest rate, which is called the Repo Rate.

Banker’s Acceptance - It is a financial instrument introduced in the name of a bank. The issuer of this instrument pays a specified amount to the holder within 30-180 days of its issuance.

Eligibility Criteria & Documents for Life Insurance Cum Investment Plans

Individuals aged above 18 and up to 65 years can apply for these investment plans by submitting the following documents.

Identity Proof - Aadhaar Card/Voter ID/Passport/PAN Card

Address Proof - Aadhaar Card/Voter ID/Passport/Any other document issued by the central government

Income Proof - For salaried - Latest Form 16, Bank statement of the last 3 months showing the credit of salary, Income Tax Return for the Last 2 Year For self-employed - Form 26AS, Income Tax Returns of the last 2-3 years along with income computation, profit & loss account and audited balance sheet for the last 2 years

Why Should You Buy Investment Plans Online @Wishpolicy?

Applying for investment plans online at Wishpolicy makes sense because of the following credentials of this IRDAI-certified portal.

Offers Scope for Effective Comparison - Our neutral comparison engine hits the right balance between a wide-range of products and relevance to your needs. You can check and compare a wide range of life insurance cum investment plans in terms of sum assured, policy term, premium payment, maturity proceeds, etc. With such a comparison, you could achieve your financial goals easily.

24x7 Dedicated Customer Support Services - The moment you apply for an investment plan on our portal, we evaluate your details, contact you and forward your application to the insurer. Once the application is approved by the insurer, we’ll intimate you about the same. We’ll deliver the policy document to your email and in-person too. But we don’t stop merely at the issuance of the policy! We go on to extend our helping hand to even when your nominees are about to claim upon your unfortunate demise. We also provide you the help when claiming maturity benefits. At every stage of the investment plan, we’re with you!

Insurance Tie-ups - We have tied up with 20 plus insurance companies that offer these investment plans. The list of top insurers includes HDFC Life, Bajaj Allianz, Canara HSBC OBC, PNB MetLife, Aviva Life, Aegon Life, Max Life, etc.

Customer Trust - Our impressive and undeterred services have taken our ‘Happy Customer’ count to more than 29 million till now. You could also join this elite list.

How to Apply for Investment Plans @Wishpolicy?

It takes just a few steps to choose and apply for your preferred investment plan at Wishpolicy:

    • Visit www.wishpolicy.com
    • Click on 'Investment Plans'
    • Mention your name, gender, age, mobile number, and the amount you want to invest
    • Click on 'Start Investing'

We will contact you and send your application to the insurer for approval. Once approved, you will be notified about the same on your email ID and mobile number. A few days later, you will get the policy document on your email ID as well at your doorstep.

Frequently Asked Questions

Have a query? Our Policy Experts have the answer!

Both are Life Insurance Plans, but with one key difference – Only Death Benefit VS Life Cover plus Returns at maturity. Term Life Insurance is a pure insurance product where there is a payout only in case of death of the insurer within the Term of the Policy. The benefit here is low premiums, but it cannot be used as an investment tool. Guaranteed Return plans provide the Sum Assured as a life cover, in case of death within the policy period; and in case of no death, give the Sum Assured as a payout at the end of the Policy Period. So, it can be used as an investment tool. One can opt for Guaranteed Plans, where payout is structured as a lumpsum or in parts.

A Unit Linked Insurance Plan (ULIP) is a participating policy where the policy holder is eligible to get a part of the profits or bonuses earned on the invested insurance amount, but there is no guaranteed return. A Guaranteed Return Plan is a non-participating policy that does not give you any additional bonus, but guarantees return as the sum assured payout. ULIPs are good for those who are okay with taking moderate risk in lieu of the potential for a higher return. Guaranteed Return Plans are good for those whose main objective is to secure their financial future by insulating themselves from market forces and uncertainty.

Both are Investment Plans with some small differences – An endowment plan is preferred by those who are looking at their policy as a long-term wealth accumulation tool or for long term goals. This is because the sum assured is paid as a lumpsum only at the end of the tenure. Typically tenures range from 10 to 35 years. A Money-back Plan are for relatively short-term investment goals as the sum assured is paid in parts at regular intervals. Tenures range from 5 to 25 years. Also, Endowment Policies can be used as a security for loans, as the sum assured is intact for the term. This is not the case for Money-back Plans, as the sum assured balance becomes smaller with every payout.

As you must have already noticed, there are many types of Investment Plans, with several differences and feature overlaps. This can be confusing and you might miss out on an option that might be perfect for you. WishPolicy is your go-to Insurance Companion, partnered with 20 Top Insurance Companies, giving you the widest choice. Our Policy Experts help you understand and compare policies in detail. Their neutral advice can empower you to make the right choice. WishPolicy also assists you with processing, post-purchase and claims support.