We all work hard to have a secure and stable life, and our loved ones can achieve their goals without having to face any hassle. However, there is no doubt that our lives are filled with uncertain and unforeseen events. We never know when we might come across an unforeseen event, such as the demise of the breadwinner of the family, which will lead to our family falling into the clutches of financial constraints. This will make it difficult for them to carry on with their lives and achieve their goals seamlessly.
Investing in investment plans has become one of the best and safest ways to save for the coming years and provide financial security to yourself and your loved ones. So, if you want to know everything about the PPF investment plan, you have come to the right place. In this article, we will look at what is PPF account, its features, and its benefits.
What is PPF Account?
- A PPF account is one of the best investment plans in India for you to consider investing in.
- This plan is backed by the Government of India and is also one of the safest plans.
- A PPF account provides the policyholder with financial security and a lump sum amount of death benefits to the family in case of unforeseen demise of the policyholder or the breadwinner of the family.
- One of the key reasons why this plan is preferred is because of the high public provident fund interest rate it offers.
You now know what is PPF account. Let us now look at a few benefits of investing in the Public Provident Fund (PPF).
Benefits of Investing in PPF
- You and Your Family are Financially Secure
We all want to provide financial security to ourselves and our families so that in case we come across an unforeseen event; we know we will not have to face any constraints. Moreover, in case we come across an unforeseen demise, this will leave our family under immense financial pressure and the stress of how they will continue with their lives and achieve their goals. Investing in a PPF investment plan provides financial security to you and your family. This will ensure that you and your family are able to achieve all that you have dreamt of.
- Lump-Sum Death Benefits
In case of an unforeseen demise of the policyholder, the PPF investment plan will provide the family with a lump sum amount of death benefits. This will ensure that they do not come under any financial constraints and are able to continue with their lives without any hassle.
- Tax Benefits
Another benefit of investing in a PPF investment plan is tax deduction benefits. By investing in this plan, the policyholder is eligible to claim tax deduction benefits of Rs. 1.5 lakhs under Section 80C of the Income Tax Act in one financial year.
Let us now look at a few features of the PPF investment plan.
Features of a PPF Account
Below are a few features and post office PPF scheme details that you should keep in mind.
- The policyholder can invest a minimum amount of Rs. 500 and a maximum amount of Rs. 1.5 lakhs in one year.
- PPF investment plan comes with a lock-in period of 15 years. However, in case of a financial emergency, the policyholder can make partial withdrawals during the 7th year of the policy.
- After the PPF plan completes its tenure of 15 years of the policy, the policyholder can either withdraw the entire lump sum amount or extend the tenure of the policy by a multiple of 5 years.
- In case the policyholder is planning to close their PPF account, they will have to visit their nearest bank branch, which will then initiate the process of transferring the lump sum amount to their bank account.
- In case the policyholder plans to continue the tenure of the PPF plan after 15 years with the multiple of 5 years, they can do it by giving it in writing to their bank branch. With this, they can continue to deposit the annual amount as well as claim the benefits of the policy as well.
Make a Choice That’s Right for You
In today’s time and age, it is important to have a financial backup plan ready in advance. This will ensure that you or your family do not face any hassles or constraints in future and are protected by a financial safety net.
After this article, you know everything about what is PPF account, their features and their benefits. So, if you are planning to invest in PPF, you can get in touch with leading insurance providing companies. They come with the best PPF plans for you to consider investing in.
