Will Your Savings Be Enough for Your Loved Ones If Tomorrow Never Comes?
As the Covid-19 pandemic raged on, we had to be vigilant, take several precautions and follow many guidelines to protect each other and stop it from spreading. While following these measures, we also understood how important it is to ensure the safety of our loved ones in the event something happens to us. While we may have built a financial net for our family, the question is will it be enough. We can be at peace when we’ve taken extra measures to ensure our loved ones stay financially protected in our absence. One of the optimal ways you can ensure the safety of your loved ones is by getting a life insurance policy.
A life insurance policy is essential to protect your family and provide them with monetary support in your absence. When your loved ones get monetary support, they will be able to handle the different financial obligations. However, if you’re looking to protect your family and build a financial corpus for your life goals, you can consider savings insurance plans. If you want to learn more about savings plans, you should read on.
What is a savings insurance plan?
A savings insurance plan is an insurance policy that will allow the policyholder to save, invest and build wealth which will help them meet their life goals. These plans are designed in a way that helps policyholders build a regular saving habit and gain significant returns at a time when they require it.
Some of the best savings insurance plans offer the following benefits:
Provides a combination of insurance coverage along with secure payouts:
Life insurance plans will ensure your loved ones will get the financial assistance they need in your absence. In addition, the plan will function as a financial safeguard against unfortunate events like accidents and death. When you add the savings element to an insurance plan, you increase the protection you can get with the possibility of regular payouts.
Helps in building financial discipline:
An important part of the savings insurance plan is that it will help you build financial discipline in your life. When we’re growing up, our parents introduce the concept of savings, but we do not understand how it will help us reach financial freedom in our lives. However, building the habit of keeping some money aside in our lives can be a bit difficult. With a savings insurance plan, you can easily inculcate the habit of regular savings.
Just like any other insurance plan, the best savings insurance plans will also provide you with tax* benefits on the premiums paid subject to the maximum limit offered under Section 80C of the ITA, 1961. Therefore, it is an excellent tax* saving option
Offers maturity benefits:
The savings insurance plan also offers maturity benefits. You will get the funds either because of an event that would provide the insurance coverage or because the policy has reached maturity. When the plan reaches maturity, you will receive the fund value depending on the prevailing NAVs. Along with this, you will get the option of getting the same in a regular periodic payout under an appropriate settlement option.
Savings insurance plans will allow you to customize the plan according to the objective you wish to achieve through the savings. Therefore, before you purchase a savings insurance plan, you must have a specific goal in your mind. This way, you can select the plan which allows you to meet your goals conveniently.
With a savings insurance plan, you get many fund options and portfolio strategies as choices. It is also simple to switch between different funds a specified number of times, which means you can move your investment between different funds like equity and debt based on your risk profile. Generally, many individuals revise their portfolio as their plan reaches maturity. Therefore, when the maturity date is close by, you will want to refrain from market fluctuations and safeguard the funds. For such situations, opting for low-risk debt funds can be quite beneficial.
Regardless of your premium payment term or the policy, once the lock-in period of five years is over, you can either partially or entirely withdraw the funds from your account in the event of an emergency. Having access to such liquid funds can be quite helpful during emergencies when you need a large sum at short notice.
As insurance is considered one of the best savings cum protection plans in the country, a wide range of features and variants across the board is available. If you wish to find the best savings plan in India which meets your requirements, it is essential to understand your goals and requirements. It would help if you charted out your short-term and long-term goals, which you can achieve through the plan. Along with this, you must also plan out your investment horizon and decide your risk profile.
Besides these features, you should also read and understand the specifics of the savings insurance plan you wish to purchase. You should consider essential components like your plan’s unique features, the flexibility it provides and any other benefits like riders#.
Tata AIA Life Savings Insurance Plans
You can check out the Tata AIA life savings plan. These plans allow you to build your wealth and ensure the protection of your loved ones in your absence. The plans allow you to get insurance for critical illnesses as well.
You can also increase the coverage you get from the plan by adding riders# to it. In addition, the plan provides you with the ability to choose your income period from 20 to 45 years.
Finally, you can get tax* benefits under Section 80C as well as Section 10(10D) as per prevailing tax norms.
A savings plan is an insurance plan that provides you with insurance coverage along with the ability to build a financial corpus. When you’ve purchased a savings insurance plan for your family, you will be assured they will be protected if something happens to you. Besides, you can also achieve your financial goals comfortably through systematic savings. The plans offer flexibility, liquidity, insurance for critical illness and many more features to assist you in difficult times.