FOR EXISTING POLICY

Have query on your existing policy, premium or payout?

Call us on

call-icon-white 1 860 266 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

FOR NEW POLICY

Want to buy a policy but have questions or need expert advice?

Give us a call on

Call Us to Buy Insurance Policy Online +91 22 69849300
Want us to call back to help you buy a policy?

Give a missed call on

+91 11 6615 8748

Monday - Sunday | 8 am – 11 pm IST

Why Young Investors Should Worry Less About Investments and More About Savings?

27-09-2022 |

Your 20s are all about struggle, career growth and working towards overall stability, especially financial stability. You have just started your professional career and are working towards building a life, a life that will eventually be shared with your loved ones.

The 20s are also about building a financial portfolio. Young investors are generally characterised by long-term goals, apt-risk appetites, diversified portfolios and fast investments. They invest aggressively, are willing to take good saving risks and build a decent portfolio before they start a family.

As important as investing is to benefit from the market movements and build wealth fast, it is equally important to put your money into stable and lesser-risk saving plans for young adults to build an assured corpus. Similarly, it is necessary to plan long-term investments, and it is equally important to ensure optimum savings for the short-term goals.

Market-linked investments are great for long-term wealth creation. Markets are volatile in the short term; however, long-term investments allow for rupee cost averaging and balancing out of any major lows with an equal number of high Thus, investing is perfect for long-term financial planning. However, for short-term goals, such as marriage in the next 2-3 years, building an emergency fund, saving up for a sabbatical for upskilling, etc., you need a money savings plan with assured returns.

Thus, young investors should also put effort into building a savings corpus. Let us look at a few reasons why savings are more important than investments for young investors.

Here’s Why Young Investors Should Save More

 

 

  • Baby steps into investing: Most young investors are new to market-linked investments. Very few have the required knowledge and skills to succeed from the get-go. Therefore, it is better to start with simple savings and build awareness about financial matters and investing.

    Once you have acquired some basic knowledge, you can start investing in the market. Even then, start with investor-friendly avenues, such as mutual funds, Equity Linked Savings Schemes (ELSS), Unit Linked Insurance Plans (ULIPs), etc.

  • Build an emergency corpus: Once you start earning, it is vital that you draft out a detailed financial plan. And one of the important elements of a financial plan is an emergency corpus. The recent pandemic highlighted the fickle nature of our jobs. Most young professionals were either laid off or got major pay cuts. In such scenarios, it becomes important to have at least 6 months' worth of monetary resources available in an emergency fund.

    Prepare a financial forecast and ascertain how much money you require, as per your standard of living, spending patterns and necessities, to survive one month without a salary. Multiply that by six. That is how much you should have in your emergency fund. As it is an essential corpus, it is better to create it through savings plans with assured returns than investing.

  •  Current and upcoming liabilities: As a young professional, you might have education loans that need to be repaid. Additionally, you may be looking to take a home loan or a car loan. You may have credit card debts.

    As already discussed, you need to be prepared for any periods of no/low income. You can start saving up for a separate corpus to help you pay your loan instalments in case of loss of income. And in case you have a stable, well-paying job, the accumulated savings can help you prepay the loan and get rid of the debt burden
    .
  • Down payment: Once you start getting a stable paycheck, you will want to buy a two-wheeler or a four-wheeler. You may also want to purchase your own home. All these require a sizeable down payment, especially a house.

    You can estimate the approximate amount required and start saving up in money-saving plans so that you are assured of a fixed payout.

  • Stress-free savings: In your 20s and 30s, you already are stressed about proving yourself professionally, starting a family, taking care of the family, maybe upskilling yourself, buying a home and/or vehicle and so on. You do not need to worry about your financial corpus by putting all your eggs in the market-linked basket.

    Having a few savings plans that offer guaranteed1 returns allow you to rest assured about a part of your money. For emergencies and critical goals, saving your money on lesser-risk products allows you to lead a stress-free life, knowing that if needed, your saved-up corpus will be available for you.

Savings + Protection with Life Insurance Savings Plans


Now that we have discussed the importance of savings for a young investor, it is important to look at some popular savings avenues. Fixed deposits (FDs), recurring deposits (RDs), and savings accounts are conventionally popular and most opt for products for hassle-free and stress-free savings. Similarly, government schemes, such as Public Provident Fund (PPF), National Savings Certificates (NSCs), Post Office Savings Schemes, etc., are also used extensively for building a savings corpus.


One more important product that allows no-risk savings is an insurance savings plan from life insurance companies.


As a young professional, you may have some loved ones who are financially dependent on you - elderly parents, siblings, spouses, children, etc. Even if you build a large savings and investment portfolio, you need to ensure that they are taken care of in your absence as well.


Life is uncertain. Will your family be able to sustain the lifestyle in your absence? What about your parent's medical expenses and other needs? Will your unfortunate demise leave your family riddled with debt? The best way to quell all these fears is to get yourself adequately insured with a life insurance plan.

Life insurance savings plans combine the benefits of life cover and guaranteed1 returns on the money invested. The premium you pay for a money savings plan is put in non-market-linked avenues, thereby assuring you of guaranteed1 returns.

At Tata AIA, we offer a wide range of specially curated life insurance savings policies. With our wide range of online calculators, you can find the best saving plan for young adults to not only secure their families but also save for their dreams and financial goals.


With Tata AIA savings plans, you get guaranteed1 returns plans, monthly income plans, regular income plans, money-back plans and so on. Choose the one that matches your savings goal and financial requirements.


For more information on Tata AIA life insurance savings plans, you can get in touch with our insurance experts today.


L&C/Advt/2022/Sep/2261

Looking for a financial solution to save tax? Speak to our expert

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Need more information?

Let us help you

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

Connect with us now

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Need more information?

Let us help you

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

Connect with us now

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

People Like You Also Read

10 Types of Investment You Must Know
Read More
How To Become a Smart Investor in the 20s?
Read More
Complete Guide on Capital Gains Account Scheme | TATA AIA Blog
Read More
Education Loans in India: A Complete Guide
Read More
What You Must do if Your TDS is Not Deposited with the Government
Read More
5 Differences You Must Know Between Savings and Investments
Read More
How to Calculate the Interest Rate on Provident Fund? | Tata AIA Blog
Read More
Know The Pros And Cons Of Annuity Plans in India | Tata AIA Blog
Read More
5 Life Events When You Must Review Your Insurance Coverage
Read More
Portfolio Diversification: How This Helps You Achieve All of Your Financial Goals
Read More

Need more information?

Let us help you

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

Connect with us now

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

People Like You Also Read

10 Types of Investment You Must Know
Read More
How To Become a Smart Investor in the 20s?
Read More
Complete Guide on Capital Gains Account Scheme | TATA AIA Blog
Read More
Education Loans in India: A Complete Guide
Read More
What You Must do if Your TDS is Not Deposited with the Government
Read More
5 Differences You Must Know Between Savings and Investments
Read More
How to Calculate the Interest Rate on Provident Fund? | Tata AIA Blog
Read More
Know The Pros And Cons Of Annuity Plans in India | Tata AIA Blog
Read More
5 Life Events When You Must Review Your Insurance Coverage
Read More
Portfolio Diversification: How This Helps You Achieve All of Your Financial Goals
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA), Tata AIA Life Insurance is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Disclaimers

  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not guaranteed issuance plans, and they will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and does not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry
  • IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
  • THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.
  • Past performance is not indicative of future performance.
  • All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.
  • Please make your own independent decision after consulting your financial or other professional advisors.

Need more information?

Let us help you

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

Connect with us now

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.