While fathers play many roles in their lives, for most of us, they were the first financial planners we ever had. Their valuable lessons about savings and money management serve as a foundation for our own financial literacy and responsible financial habits. One crucial element of financial planning is retirement strategy. No matter what stage of their life fathers are in, they should always invest in their golden years as early as possible. In addition to that, fathers constantly plan for a financially secure future of their family, even in their absence.

Here we take a look at some of the best plans that will help fathers achieve their financial goals and also secure their family’s future.

Guaranteed Returns Plans

Guaranteed return plans are an attractive option for securing retirement as they provide a safe investment option with a guaranteed, tax-free return regardless of market volatility or fluctuations. They offer returns as high as 7.5%, which is rare for a traditional savings instrument. Moreover, it allows the policyholder to lock in the interest rate for an extended period, for as long as 45 years. This results in a stable and anticipated return on investment for the policyholder. In addition to the guaranteed returns, these plans also have an element of life insurance coverage, securing the financial protection of dependents in the unfortunate demise of the insured. Thus, if you are looking for a plan to build a corpus, then the no-risk, guaranteed return plan that safeguards the capital and returns and allows for a tax benefit of up to Rs 5 lakh on their annual premium is worthy of deliberation.

Also Read: What you must check before taking an education loan

Annuity Plans

If you are looking at diversifying your portfolio, Annuity plans are one such wise, risk-free investment option for not only wealth creation, but also for ensuring a recurring income after you have retired. These two types of annuity plans are called Deferred and Immediate annuities, respectively. It’s quite possible that you have the lumpsum amount ready and are looking to invest as your retirement nears, so you can invest in annuity immediately and start receiving income. Alternatively, you can invest in deferred annuity and earn a higher income at a later stage. So, if you want your finances to help you sail comfortably through your sunset years, Annuity plans are worth a bet. Overall, annuity plans are secure and free from market risk, though the income earned is taxable as per various slabs.

Unit Linked Investment Plans (ULIPs)

One notable advantage of ULIPs is their ability to allocate a portion of the investment towards equity, debt, or hybrid funds, enabling long-term financial goal attainment. Simultaneously, they provide life insurance coverage to protect the family’s monetary well-being in the unfortunate event of the insured’s untimely death. Furthermore, it offers the unique advantage of switching between equity and debt funds depending on the investor’s inclination after gauging market conditions. This feature can aid in gaining attractive returns from anywhere between 12% and 15% during favourable market conditions. But, as they are a market-linked investment, it is essential to know they ULIPs come with considerable risk. Furthermore, policyholders can also benefit from the tax benefits that allow availing of deductions of up to Rs 2.5 lakh on the annual premiums.

In conclusion, before finalizing any of the plans, it is advisable to explore the different options available online and find the perfect insurance plan that aligns with your requirements. Also, carefully read and understand all relevant documents, such as the features and terms and conditions.

(By Vivek Jain, Head – Investments, Policybazaar.com)

Disclaimer: This is the author’s personal opinion. Readers are advised to consult their financial planner before making any investment.