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5 Factors to Help You Choose the Right Savings Plan in India

25-07-2022 |

Investing in a savings plan in India is an important financial goal. It helps people manage emergencies and also save for the future. Many people wish to invest in savings plans but do not have an idea about how to choose the right savings plans. As the options are varied based on the features and cost, you have to do your research to invest in the best financial instrument.

Financial institutions in India offer a range of products that help you save money in the long term. Insurers offer savings insurance plan options that combine the benefits of savings and insurance. There are different ways to analyse the product solutions, and here are 5 factors to help you choose the right savings options in India.



5 Factors to Help You Choose the Right Savings Plan

Here are five factors to help you choose the right savings plan for yourself:



  • Financial Goals - The first and most important reason to invest in a savings plan is to accomplish your financial goals. Therefore, you must consider the long term investment, discuss it with your family and understand the priorities to decide on the money goals. Based on the money goals, you can decide on the extent of funds required and the time duration to accumulate the same based on your steady flow income and affordability.

    You should also ensure to account for the inflation rate while making the calculations to make a choice affordable and beneficial at the same time. For example, suppose the investment in the savings policy is for your retirement. In that case, you can calculate the average expenses based on the current lifestyle, account for the inflation rate, decide on the monthly or annual income required, and choose the product that can offer these benefits.

  • Guaranteed1 returns - When you choose a savings policy, ensure that it offers guaranteed1 returns. While you invest your hard-earned earnings, you should ensure that it provides guaranteed1 returns to fulfil your personal and family commitments.

    And, if you are the sole breadwinner in the family or your family is highly dependent on your earnings to accomplish certain commitments, you should ensure to have a savings insurance plan. It will provide a life cover that will provide the death benefit to your family in case of your unexpected demise and a guaranteed1 return on maturity.

    And as the returns are guaranteed1 during policy inception, you can plan for your commitments exactly. Also, when you start buying such policies early in life, you will benefit from this early and choosing a longer policy term. The longer the policy term, the greater the benefits.

  • Flexibility of product features - When choosing a savings plan, look for policies that provide flexible features. For instance, our Tata AIA Life Insurance savings plan provides a savings insurance plan that offers flexible premium payment and payout options. You can regularly invest throughout the policy duration or for a limited term. And you can receive the payout benefits as a monthly or annual income for a defined income period.

    You can also choose additional rider# options to enhance the benefits received under the savings plan benefit during specific scenarios based on the requirements. There is also a return of premium2 option that provides a refund of the premium amount paid during the policy tenure when the plan matures. And, if you feel you will require consistent income to pay for family commitments such as paying school fees, regular utility bills, etc., you can purchase money savings plans in India.

  • Reliability of the insurer - While the options are many, choosing the apt savings plan from a reliable insurer is important. Investing in a savings plan is to receive the payout benefits on time. So, it would be best to research the claim settlement ratio of the insurance provider, policyholders' feedback, etc., to determine their reliability. You can speak to a couple of policyholders, understand their experiences and evaluate the pros and cons. It would help if you also enquired about the product inclusions and exclusions to maximise the benefits anytime. Understand their processes and timelines to plan for the financial requirement when your family is under a financial crisis in your absence.

  • Easy accessibility - Nowadays you have the convenience to invest better and receive benefits timely. Ensure that your insurance provider makes everything accessible for you as it enables you to read through the different policy features and compare the solutions based on cost. It will help you opt for an affordable product and conveniently access the features.

    When in an emergency, you should be able to reach the financial support easily, process through the formalities quickly and ensure the benefits are guaranteed1 to the rightful owners. Therefore, processes and cost are major considerations and must be given maximum importance. At Tata AIA, we also offer online premium calculators that help you estimate the premium based on the sum assured, guaranteed1 returns required and the policy term.



Conclusion

Investing in a saving plan is important to secure your life and accomplish your money goals timely. Therefore, choosing the right savings plan is essential to value your earnings. Insurance providers offer savings insurance plan options that provide a life cover and a guaranteed1 return on maturity. To maximise the benefits of such a savings policy, it is important that you analyse your financial goals, determine the guaranteed1 returns required, look for flexible features, compare the insurer's reliability, and understand if you have online access to the services. And after you have decided on the product solution, stay invested during the policy term entirely to accumulate the benefits as desired!

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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 a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read 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 do 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

  • #Riders are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office.

  • 2Return of premium shall be the return of Total Premiums Paid (excluding loading for modal premiums and discount) by the policyholder at the end of the Income Period