You work yourselves to the bone to ensure your loved ones never have to compromise on their goals and dreams. However, without a secure savings method, all your hard work will be for nothing. Therefore, it becomes imperative you look for different methods that will help you achieve your financial goals.
Out of the numerous plans available out there, an insurance savings plan is one of the most optimal policies that will help you save systematically and ensure the protection of those close to you.
What is a savings plan?
A savings insurance plan is a variant of life insurance plans that allow policyholders to save and invest their funds in a disciplined and systematic manner. With this systematic approach, individuals can be fully prepared to meet all of their family’s future fiscal requirements. Let’s look at the reasons how a savings plan can help you.
5 reasons why you should invest in an insurance savings plan:
- Offers payouts with coverage: As the savings plan is essentially a life insurance plan, it will provide your family with the required financial assistance in the event you pass away. Apart from the payouts provided by this guaranteed income plan, the added benefit of insurance coverage helps you efficiently protect your family.
- Provides flexibility: Everyone has different priorities and goals in life. A savings plan was designed considering the different requirements of each one of you. It offers a myriad of flexible features which will help you customize the plan as per your requirements. You get options on the funds you wish to choose and other investment criteria. Along with this, you get to switch between different investment choices based on your risk profile and requirements.
- They help you in meeting your life goals: Specific saving investment plans are designed to help you meet your important life goals. For example, certain plans are tailored as investment plans to help you save up and secure your child’s educational future.
- Assists you in saving taxes: As a guaranteed savings plan is essentially a life insurance plan, they provide you with the same tax benefits as other insurance plans. You can avail of a deduction of up to Rs. 1.5 lakh on the premium payments made towards the plan as per Section 80C of the Indian Income Tax Act. Additionally, the maturity benefits and life cover payout are tax-exempt under Section 10(10D).
- Helps you build financial discipline: While knowing about the importance of savings, incorporating the ideology in your lives can be quite difficult. This is where a savings plan comes in handy. When you own this money saving plan, you will be able to include financial discipline in your life.
However, you must choose the right savings plan. To select the most optimal plan for yourself, it would help if you researched the plans online. Many insurance companies provide multiple features on their official websites these days to ease the policy purchase and premium payment process. For instance, you can now make the TATA AIA payment online if you are purchasing an insurance plan with Tata AIA Life Insurance.
If you’re looking for avenues that will help you save systematically for your long-term financial goals and ensure the insurance coverage of your loved ones, a savings plan will be suitable for you. With a savings plan, you will build financial discipline, get tax benefits, get access to the flexibility to invest as per your risk profile and many other features.
Some common queries:
Why is a savings plan important?
A savings plan helps you save systematically and ensure insurance coverage for your family. With a savings plan, you can build for your long-term goals and protect your loved ones at the same time.
What are the benefits of savings and investing?
With savings and investing, you get to protect your family’s financial future, build wealth gradually and invest in funds as per your risk profile and suitability. Along with this, you also get tax benefits on the premiums paid towards the savings plan as per the Income Tax Law, 1961.