Language

Call us

/content/dam/tataaialifeinsurancecompanylimited/navigations/new-call-us/Close.png

starFOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Dedicated NRI Helpdesk:

Call Icon +91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST
Call charges apply

Plus IconFOR NEW POLICY

Want to buy a new policy online?

For Indian Residents

Call Icon +91 22 6984 9300

Give missed call for a call back:

Call Icon +91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST

Exclusively for NRIs

Initiate Internet Call

Data charges may apply

Give missed call for a call back:

call +91 11 4473 0242

Available All Days | 24 x 7

Back Arrow Icon
Close Button
Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

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. T&C apply.

5 Reasons Why You Should Buy a Savings Plan

Have you ever thought of the benefits of saving money with a savings plan? A savings plan is a life insurance product offering the dual benefit of life cover and creating funds for future needs. It is perfect for financing mid-term and long-term financial goals since you can save and multiply your earnings over the years.
 

Here are five reasons why you should consider buying a savings plan:
 

Fixed returns and long-term benefits
 

With a savings plan, you get fixed returns, guaranteed1 when you buy the policy. Thus, these plans are suitable for new investors or those who are averse to bearing market risks. Knowing the returns you can expect also helps you plan your finances more efficiently. You can use the funds for
 

  • children’s education or marriage
  • buying a car or property
  • ensuring your financial stability in retirement
  • bearing the health care costs of a dependent spouse or elderly parents
     

Thus, with a savings plan, you never have to face the doubt, ‘how much savings do you have?’. You are always sure that you are saving enough for your aspirations.
 

Financial coverage
 

Your family depends on you for their living costs. As the breadwinner, you might wonder how much to have in savings to cover their expenses in your absence. Savings plans secure your family against such financial worries in case of an unfortunate event. Along with the guaranteed1 returns at maturity, these policies also provide an assured payout to your nominee if an unwanted event occurs.
 

Many savings plans offer the option to add riders# to extend your base coverage for a nominal increase in the premium. You can get a lump-sum amount if you contract a critical illness covered under the plan. Your family can get extra payouts if death or disability, or dismemberment occurs due to an accident. You can arrange for your family to receive the sum assured as a lump-sum payout or monthly instalments per their financial needs. Thus, savings plans offer all-around financial protection to your loved ones.
 

No depreciation in fund value
 

With a savings plan, you never have to wonder how much savings have accumulated for your future requirements or if the amount would suffice.  Your savings plan is safe from market volatility, never losing its fund value. Moreover, such plans ensure that the value of your money does not decrease due to inflation. Using the power of compound interest, the interests earned, added to your capital, fetch further interests.  Thus, your investment grows at exponential rates, offering inflation-adjusted returns.
 

Savings habit and financial discipline
 

A savings plan inculcates a regular and disciplined savings habit since you have to pay periodic premiums. Insurance companies provide monthly, quarterly, half-yearly, or annual payment options over the policy period. Since you have to set aside a sum from your income regularly, you become more cost-efficient in your spending habits. Thus, you can free up even more funds for other investment avenues.
 

Tax* benefits

 

 

The premiums you pay for your savings plan are deductible from your taxable income under Section 80C of the Income Tax Act, 1961. Under this provision, you can claim up to ₹1,50,000 in tax deductions. The payouts from a savings plan are also tax-exempt if your policy meets the conditions under Section 10(10D). Thus, a savings plan serves as an effective tax-planning instrument.
 

TATA AIAs Saving Plans
 

TATA AIA offers a range of saving plans with guaranteed1 returns/income, catering to different financial needs. Some of the features are as follows:
 

  • Guaranteed1 Monthly Income: Our savings plans offer a guaranteed1 monthly income depending on your chosen plan. You will receive a fixed amount of money every month for a specified period. This income can help you meet your regular expenses and provide financial security to your family. The amount of the monthly income is predetermined at the time of purchasing the plan.

     

  • Comprehensive Life Insurance Coverage: Our savings plans comprise a life insurance component that helps you secure your family's financial future in your absence. They can receive a lump sum payout in the event of your untimely demise. When buying the savings plan, you can choose the life cover or sum assured as per your needs.

     

  • Guaranteed1 lump sum payout: Some of our savings plans also offer a guaranteed1 lump sum payout at the time of policy maturity. Pick a policy term of your choice to determine how many years you want to save your money. The lump sum amount can be used to achieve your long-term financial goals.

     

  • Whole Life Cover up to 100 years: Depending on which policy you choose, you can get whole life cover for up to 100 years for your family. This can be useful if you don't want the policy coverage to end and want to avoid the hassle of purchasing a new plan later. You can choose the coverage period at the time of buying the policy.

     

  • Additional Bonuses2Some of our policies offer additional bonuses on the maturity amount, such as reversionary and terminal bonuses. However, these are not guaranteed1 bonuses2 and can only be added when declared. You can boost your savings with these bonuses and get additional financial security.

     

  • Option of lump sum and regular income payouts: Under some of our savings plans, we offer the flexibility to choose how you want your payouts. You can receive the lump sum amount at maturity or opt for regular income payouts for a certain number of years. The regular income payouts can be monthly, quarterly, half-yearly or yearly and can be customised accordingly.


     

To conclude:
 

Savings plans enable wealth preservation as well as creation at minimal risks. However, to buy a savings plan that gives you the maximum benefits at minimal premium prices, you need to compare the different offerings from various insurance providers.
 

You can visit their websites and look into the features, payout options, premium rates, and other policy terms and conditions.

 

L&C/Advt/2023/Mar/0782

Get complete protection at affordable cost & tax benefits

+91 dropdown arrow
  • +93 Afghanistan

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 buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

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

Income Tax Rebate Under Section 87A - Your Complete Guide
Read More
What is an NRI voter ID card? | Tata AIA Blog
Read More
NRI Criteria: Eligibility & Benefits | Tata AIA Blog
Read More
Best Indian government schemes for NRI | Tata AIA Blog
Read More
What is the penalty for not declaring NRI status in India?
Read More
Should I Buy Term Insurance Plan With Return of Premium?
Read More
Does Term Life Insurance Plans Offer Cash Value?
Read More
Is The Surrender Value of ULIP Taxable? Everything That You Need to Know
Read More
How Can You Choose a ULIP Plan Suitable to Your Portfolio?
Read More
Should Housewives Opt for Term Life Insurance
Read More

People Like You Also Read

Income Tax Rebate Under Section 87A - Your Complete Guide
Read More
What is an NRI voter ID card? | Tata AIA Blog
Read More
NRI Criteria: Eligibility & Benefits | Tata AIA Blog
Read More
Best Indian government schemes for NRI | Tata AIA Blog
Read More
What is the penalty for not declaring NRI status in India?
Read More
Should I Buy Term Insurance Plan With Return of Premium?
Read More
Does Term Life Insurance Plans Offer Cash Value?
Read More
Is The Surrender Value of ULIP Taxable? Everything That You Need to Know
Read More
How Can You Choose a ULIP Plan Suitable to Your Portfolio?
Read More
Should Housewives Opt for Term Life Insurance
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

Disclaimer

  • 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.
  • 2These bonuses are not guaranteed in nature. The Company may declare a Cash Bonus rate annually in advance. The Cash Bonuses, if declared will be applicable provided all due premiums have been paid.
  • #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
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.