Financial Planning: What is the difference between SIP, HIP and TIP, know which plan is better for investment?

Financial Planning: Whenever it comes to financial planning, it is important to understand where to invest and how to protect your money. Three plans always come up in discussions related to personal finance. These are Systematic Investment Plan, Health Insurance Plan and Term Insurance Plan. Let us know how these three are different from each other and also which of these schemes is better for investment.

Systematic Investment Plan

In a systematic investment plan, you have to invest a fixed amount in mutual funds at regular intervals such as monthly or quarterly. It is beneficial for those who want to create wealth in the long run. Like retirement fund, children’s education or buying a house. It remains stable despite market fluctuations. Systematic investment plan through Rupee Cost Everything reduces the risk of market fluctuations. Its biggest advantage is that you can start it with just ₹ 500 per month.

health insurance plan

It is not an investment instrument but an essential part of financial security. Medical complications arise suddenly and can quickly drain your savings. A health insurance plan ensures that you or your family remain financially protected in case of illness, hospitalization or surgery. This plan covers medical bills, room charges, surgery costs and even pre- and post-hospitalization expenses depending on the policy.

term insurance plan

This plan provides complete life insurance. It does not include any savings or investment benefits. Its sole purpose is to provide financial security to someone’s family in case of their sudden death. Under this plan, higher coverage amount can be obtained at lower premium.

Which plan is better for investment

Each of these three plans has a different but equally important objective. A smart financial plan can include all three in a balanced manner. If we talk about systematic investment plan, it helps you in increasing your wealth over time. If we talk about health insurance plan, then you can save on medical bills. Along with this, term insurance plan guarantees the safety of the person’s family in his absence.

Also read: What is the punishment for writing religious slogans on temples, know what is the law regarding this