A savings insurance plan is a savings plus investment plan that ensures you receive a combination of financial security and savings in a single insurance policy. Such investment plans or policies are ideal for the long run, and the best part of such policies is that they allow you to invest your money securely in the form of guaranteed savings plans with returns.
Such saving policies also provide life coverage and an opportunity to save for your future goals.
If you are still not convinced about investing in savings plans, this article mentions the top five reasons why you should consider investing in the best savings plans.
Saving Insurance Plans Allow Tax Saving
The most crucial advantage of a savings plan is that you can save on taxes. In addition, the best saving plan allows ample savings in various situations, making it an attractive option.
- The investment amount is deductible from taxable income under section 80C.
- The maturity value and death benefit are tax-free.
- Also, you can invest any amount without affecting the tax-exempt status of the maturity amount.
Saving insurance plans that allow all these above benefits help you achieve an ideal value that is entirely tax-free. Nevertheless, it’s essential to remember that your annual investment in the plan should be at most 10% of the life cover in the policy.
A Guaranteed Savings Plan Ensures Guaranteed Return
The savings insurance plan ensures a definite rate of return. The policyholder is well aware of the minimum amount they shall receive on maturity since investment. And this assurance provides certainty and helps you plan your investment based on the probable maturity you expect. But to reap the benefits, you must complete your scheduled investment as per the plan. Further, its coverage aspect assures you that your family is financially protected in case of your untimely demise.
Wealth Boosters
Saving plans allow you to boost your portfolio over time through a wealth booster. Regular bonuses act as an add-on to your plan if you stay invested in it for a long time. Wealth booster helps you increase your maturity amount over a period acting as a benefit to your basic guaranteed plan. This wealth booster is the best way to achieve your financial goals easily & efficiently.
Goal Protection
One of the best and unique features of guaranteed saving plans is goal protection or premium protection. This feature acts as additional protection to your saving plan, giving peace of mind for you and your family; even if you meet an untimely fate before completing your investment into the plan, you can still meet the goal you had set for them. This ensures that the insurer will cover your premium payments and provide life coverage. Goal protection is the best and safe way to secure your family’s financial future.
Savings Plans Allow Investment Flexibility
A savings plan is one of the best money-making investment tools because it offers the flexibility of combining savings and investment. Such a plan allows you to set multiple goals at different times.
In addition, the plan offers a limited pay option that allows you to stop or continue the plan based on your financial situation. You can also adjust and invest more when your income grows. If you want to know about such a flexible plan, check reputed names such as the Tata AIA saving plan and other insurers of similar stature.
Conclusion
Savings plans are unbeatable with their unique features like tax benefits, combining savings and investment plans, and the flexibility of increasing your investment with time. Also, there are guaranteed returns and wealth boosters that make it a comprehensive package that helps you accomplish your financial goals while guaranteeing financial security for your family.
For all its features, it is inarguably one of the best investment plans for Indians.
