Investment Planning for Self-Employed and Freelancers

As per recent statistics, over 1.5 crore Indians are freelancers. Working as a freelancer has numerous benefits, you may work whenever you want

to and from wherever you want to. You do not have a tight work schedule, which relieves you of physical, emotional, and mental stress. However, the fluctuating income may sometimes turn out to be a major hurdle, which in turn may affect your expenditure and savings. Additionally, you may not have access to employee benefits offered in the corporate organizations and hence it solely becomes your responsibility to secure your future.

Thus to accumulate wealth in the long run, there are numerous freelancing and self-employed investment options. You may go through your finances and determine how much of your income you wish to allocate towards investing. Based on this amount, you may choose from any of the following four options.

1. Buy a health cover

Investing in a health cover ensures the protection of your health as well as that of your family. In case of medical expenses, the insurance provider offers to cover all related expenses. Investing in a health plan is a financially wise decision due to the rising medical costs and changing lifestyles. If you are seeking to purchase a health cover, you may opt for HDFC Life Easy Health Plan. This is a health insurance plan and mediclaim policy for individuals, parents as well as family. It provides a lump sum amount in case of hospitalization or upon diagnosis of
any critical illness. By investing in this plan, you may avail of a high cover at affordable premiums.

2. Avail of a term plan

A term plan offers you life coverage for a defined period of time. In case of your demise, the death benefit is payable to your nominee. Apart from lump sum payment to the nominee on death, term plans come with other advantages such as tax benefits, low premiums, and flexibility. One of the best term investment plans in the market is the HDFC Life Click 2 Protect 3D Plus. This online term insurance plan offers security from 3Ds, namely Death, Disability, and Disease. By investing in this plan, you may enjoy comprehensive security at an affordable rate. Moreover, this policy comes with 9 plan options.

3. Plan your taxes

Self-employed and freelancers may claim deductions under expenses incurred towards travel and depreciation of assets, among others. If your annual income falls under INR 50 lakh, you may avail of benefits under Section 44ADA of the Income Tax Act 1961. Self-employed individuals may claim 50% of the total receipts as the business expense without necessarily having to maintain any books of accounts.

4. Invest in Unit Linked Investment Plans (ULIPs)

Premiums paid towards ULIPs are invested in equity, debt, and money-market instruments. Due to such diversity, the risk factor is reduced to a great extent while ensuring good returns at the same time. ULIPs offer triple benefits of high returns, life cover, as well as tax benefits with minimal risk. You may consider investing in HDFC Life Click2Invest ULIP plan. You may avail of market linked returns at a low cost, enjoy financial protection, as well as meet your investment needs. You may chose from eight fund options and select the premium payment option as per your choice. The plan also offers a high degree of flexibility by allowing you to choose your policy term from 5 to 20 years.

As a freelancer and a self-employed individual, it is important that you manage your finances well. You may consider the aforementioned self-employed investing schemes and secure your financial future.

Similar Articles:

• Guide to Retirement Planning
• Life Insurance Comparison
• How To Choose the Best Term Insurance Plan
• Small investment Options
• Direct Taxes in India
• Indirect Taxes in India
• Income Tax Rates 2017-18