Where Can We Get The Best Savings Insurance Plan In India?
What is the need to save? This question holds as much logic if someone asks, ‘why do we have police?’
Saving money is extremely important as it helps lead a more secure life. For instance, you meet with a medical emergency and need money to cover your hospital expenses. If you have savings, you will be able to support your medical cost or be in trouble. Saving money teaches a good habit as it will help you deal with emergencies and help you prepare a financially secure bubble that will cater to all your money-related needs.
Booming inflation and the constant need to invest money in some other investment plans have increased the urge to save and invest the money in the proper channels.
In modern times, earning from one source is not the only solution. Therefore, investment has become an important asset to sail through life and provide for your family without compromising their future objectives and lifestyle.
This blog will help in understanding the following points,
- What is a savings plan?
- Importance of a savings plan.
- Factors to consider while purchasing a savings plan?
- What is the best saving plan in India to buy in 2022?
If you are ready, let us all take a deep dive into the insightful source of knowledge that will guide you more about savings and other related details.
What is a Money Saving Plan?
A savings plan can be termed a wise form of life insurance. It enables you to save by providing several options for saving money and investing and multiplying it highly efficiently. This methodical investment prepares the life insured to meet his family’s future financial demands and ensures the achievement of their objectives.
Building a financial corpus is necessary for marriage, education, or retirement-related funds. And, it is why you need to have a good savings plan to sort your life in a better manner (in terms of finances). And as a good option under a savings plan, you can also opt for decent investment plans that can help you build a robust financial corpus.
There are different types of saving schemes available in India, and some of them are as follows:
- Public Provident Fund (PPF)
- Post Office Savings Scheme
- Employee Provident Fund (EPF)
- Voluntary Provident Fund (VPF)
- Senior Citizens Savings Scheme
- Sukanya Samridhi Yojana
- Atal Pension Yojana
- National Pension System(NPS)
And many more.
Some of the features of a savings plan are as follows:
Tax advantages: Out of the many, tax benefits are one of the perks that an individual avails from insurance. The premiums paid by the life insured are eligible to avail deduction of over 1 lakh from the user’s taxable income as per Section 80C of the Indian Income Tax Act (1961). Moreover, such tax exclusions are available for maturity claims and death benefits of endowment plans under Section 10D(D) of the Income Tax Act.
Riders: These are additional benefits that the life insured can leverage at a pocket-friendly cost. They help construct a safer financial cushion to cover the insurance risk with extra riders apart from yielding regular benefits.
Investing options: A savings plan can also be known as an endowment plan, and it comes with a plethora of perks. There are certain savings plans that help the user to choose from products such as shares, bonds, and other market-related investments.
The cost of premiums: It is critical to consider the prices and expenses associated when choosing a savings insurance plan. Inevitably, additional charges are included in the savings plan, such as mortality fees, administration charges, premium allocation cost, fund management expenses, and other elements that come with a certain amount.
How to Choose the Best Saving Plan?
After understanding some basics about the savings plan, let us move ahead and learn about the points that one should consider when purchasing a savings plan. And, they are as follows:
Investment duration: If you have made up your mind for a savings plan, to begin with, look through the investment duration because the longer the period, the bigger the benefits one shall reap towards the end of the plan. There are several savings plans available that offer investors along medium-term investment horizons and also serve as tax-saving investment alternatives. Some of them may be able to help you increase your funds during the duration of your plan.
Flexibility: In order to achieve all of your long-term goals, you must select a flexible savings plan. It allows you to take care of any unexpected short-term needs. They also provide you the option of rescinding the policy if the situation demands it.
Cost: This is yet another basic yet crucial element. When deciding on the appropriate savings plan, you must fully understand the costs and expenses involved. Therefore, always choose a sensible plan according to your pocket and available with all the needed benefits.
Future Objective: Apart from building a good corpus, one also saves to fulfill their future objectives. Therefore, one must be transparent with their future goals. Have a direct about why you are doing so. You can readily calculate saving investment possibilities when you know your ultimate aim. These objectives can include building a corpus for your retirement, children’s education, marriage, home, car buying, or any other dream of the life insured.
Risk capacity and profile: Before identifying and selecting the optimal saving plan, you must determine your risk-taking ability. Understand and map certain factors – age, earning, and personal preferences. These elements assist in deciding how much risk a person can tolerate.
Best Savings Plans to Buy in India (2022)
There are many money savings plans available, but do you think that all are credible and the best in the market?
It is why we have brought you some of the handpicked and best savings plans in India that one should consider buying in India to have a safer sail in the longer run. And those plans are as follows:
Aditya Birla Sun Life Insurance Assured Savings Plan
This particular savings plan by the ABSLI combines life insurance coverage and savings advantages to protect the policyholder and their loved ones from a financial catastrophe such as – untimely death. It also assists you in accumulating lump sum advantages to attain one’s future goals.
Death Benefits: As per this clause, if the policyholder meets with an untimely death when the term plan is active, the death benefit shall be paid to the beneficiary/nominee.
Joint Life Protection: This perk gives the leverage to the policyholder to include their spouse as secondary life insured. Here, the coverage provided for the secondary life insured shall be equivalent to 20% of the life insured’s sum assured.
Maturity Benefits: According to this benefit, if the policyholder manages to live through the term plan (provided that all the premiums are paid), the insurance company shall provide a lump sum to the policyholder. Maturity Benefit shall be as follows:
- Guaranteed Maturity Benefit
- Accrued Loyalty Additions
To know more about this pocket-friendly plan, click – ABSLI Assured Savings Plan.
Aditya Birla Sun Life Insurance Vision LifeIncome Plus Plan
This plan by the ABSLI can be considered a combination of a regular income and financial protection for your family in your unbearable absence.
Survival Benefit: Under this benefit, the insurance company shall pay the survival benefit when the policyholder manages to live through the term plan after paying all the required premiums. Under this perk, if the policyholder lives through the completion of each succeeding policy year, they shall receive an income benefit equal to 5% of the sum assured along with the bonus from the previous policy year.
Maturity Benefit: As per this perk, if the life insured lives through the term plan, the insurance company shall pay the greater of the sum assured or 105% of the premiums paid till date clubbed with the terminal bonus.
Riders: You can add additional benefits to your plan to make it more secure from other possible tangents. And, they come at affordable charges.
- ABSLI Accidental Death and Disability Rider
- ABSLI Critical Illness Rider
- ABSLI Surgical Care Rider
- ABSLI Hospital Care Rider
- ABSLI Accidental Death Benefit Rider Plus
- ABSLI Waiver of Premium Rider
Apart from preparing your kitty to fulfill your future objectives, this plan also helps you accomplish your aspirations by providing a stable income and life cover until the life insured hits a century. To know more about this plan, click – ABSLI Vision LifeIncome Plan.
Savings are an integral part of life because if one doesn’t have enough savings and an emergency arises, the extra money in the kitty saves you at the moment. After all, it isn’t necessary that any family member or friend will have the required money.
Therefore, choose the right savings plan from the right insurance partner.