Uncertainties are utterly common at every stage in our lives. An unexpected event can trigger a change in your routine and lead to financial burden and extreme emotional distress. And, if you are the sole earning member in your family or contribute towards your family's financial well-being, you have to ensure that you have a life cover and plan for a savings investment in place. Is there a way to invest in both at an affordable rate?
 

Well, this is where a protection and savings plan, comes into the limelight! Therefore, let us go ahead and discuss the savings plan with life cover and how you can make the best use of this product.
 

What Is A Protection And Savings Plan?
 

A protection and savings plan is a guaranteed¹ savings plan with life cover that ensures a sum assured for your family in case of your unexpected demise and, additionally, a guaranteed¹ return on maturity. As the returns are guaranteed¹ in a savings policy, you can precisely plan and accomplish your financial goals. Moreover, you can decide on the payout option, that is, whether you want the return as a lump sum or as a regular income.
 

What Are The Features Of A Guaranteed¹ Savings Plan?
 

A guaranteed¹ savings plan provides a range of benefits that you can customise based on your financial needs. Here are some of the most important features of a guaranteed¹ savings plan.
 

1. Life cover - A protection and savings plan comprises a life cover that assures a lump sum benefit for your family in the event of your unexpected demise. It can help them repay your/their debts, pay for any financial commitments such as your child's education, marriage, etc.
   
   
2. Guaranteed¹ returns - A savings plan that provides an assured return is a secure investment. You will receive the returns at the end of the policy term. As the returns are guaranteed¹, you can plan for your future financial commitments and calculate the funds required while incorporating the inflation rate. Thus, such a plan can help you accomplish your financial goals.
   
   

   As the payout options are flexible, you can choose to receive the return on maturity as regular income or a lump-sum amount. At Tata AIA, we offer you the option to choose the mode and frequency of the payout. For instance, with the TATA AIA savings plan, you can choose the regular income option with an inbuilt critical illness benefit to let your savings insurance plan help you handle your medical expenses.
    

3. Income period - If you choose the life insurance protection plan with savings benefits, you can choose the income period for the regular income payout. It can vary based on your financial commitments and the number of dependents. You can opt for an income period ranging from 20 to 45 years.
   
   
4. Add-on riders^# - A savings plan with life cover also provides you with the option to choose add-on riders^#. The rider^# options provide additional financial assistance during difficult situations. Common riders^# offered by Tata AIA are the terminal illness rider^#, critical illness rider^#, accidental death rider^#, etc. For instance, with the terminal illness rider^#, you can get a specific amount for your hospitalisation and medical expenses when diagnosed with a terminal illness.
   
   
5. Return of premium² - You can opt for the return of premium² option in your savings plan and receive a refund of the premium amount on the plan's maturity if you survive the policy term. It will be an additional savings benefit! You can use it to go on a vacation to explore the world, start a new business, plan for your child's higher studies, etc.
    

What Are The Benefits Of A Savings Insurance Plan? 

A savings plan with life cover is a financial product that helps you in many ways, including the following.
 

1. Long-term benefits - When you save in a savings plan with insurance benefits early in life, you can choose to invest for a longer term. A longer term of the plan can help you accumulate a huge savings amount on maturity. The longer you stay invested in the plan, the better are your benefits.
   
   
2. Tax* benefits - A savings plan with life cover provides tax* benefits for the long term. The premium amount you pay and the returns from the policy qualify for a tax* deduction and tax* exemption, respectively, under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
   
   
3. Flexible features - A savings insurance plan can benefit you at large if you customise it as per your needs. When you purchase a savings plan from us, you can pay your premium based on your steady flow of income.
   

   
   For instance, you can choose to pay the premium monthly, quarterly, semi-annually, or annually. You can include your spouse under the ambit of the plan and get a life cover for them. The payout options are also flexible to make it convenient for you to utilise the funds or invest them in the future.
    

4. Developing a discipline to save - Savings and family protection is a huge endeavour. People generally don't take the necessary steps to save enough money because of their financial commitments. However, when you choose a savings plan with life cover, you get the required benefits at an affordable rate, particularly if you start investing early. Therefore, you develop the discipline to save, which is a beneficial factor. 

    

Conclusion

A life insurance savings plan should be a priority in your life. It provides a life cover and, additionally, guaranteed¹ returns. As the returns are assured, you can invest in goal-specific plans to accomplish your commitments. Furthermore, with a savings insurance plan, you get to choose the mode of the payouts and the frequency of the premium payments.
 

There are also many tax benefits that you can avail of. If you wish to plan for specific financial goals and simultaneously get a life cover to secure your family's financial well-being, a savings plan with life cover is ideal for you!  
 

L&C/Advt/2023/Feb/0514