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How to Select the Best Saving Plan?

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Ever saw your parents saving some money or keeping a few bucks some of their earnings aside for the future? 

We all have seen it, learnt it and even practised this fundamental habit from our parents since a young age. When it comes to investments, it is recommended that one starts as early as possible to enjoy maximum benefits. This applies to saving plans too. And, it is important to open and invest only in the best saving scheme to achieve both long-term and short-term objectives.

No matter the amount of money one earns, it is better to inculcate the habit of making multiple investments to create a corpus over time. However, with so many options available, it can be confusing to decide which investment to select. As we are talking about saving plans here, let’s understand what they are, how such plans help, and how to select the best saving plan.

What is a Saving Plan?

Saving plans are a type of life insurance plan that allows people to save and accumulate funds over a period of time and help fulfil their future needs. Such plans are designed in a way that policyholders can inculcate a disciplined saving habit and earn substantial returns.

Why Do You Need a Saving Plan?

Saving plan enable you to secure your and your family's financial future by providing financial freedom. It provides financial security so that you can take calculated risks. It might be more difficult to pursue your passions such as starting a new venture, buying a house etc. if you don't have any savings. 

Benefits of Saving Plan

Saving plan is preferred as the most appropriate choice for people who enjoy multiple savings and future-oriented opportunities. Some benefits of investing in a saving plan.

Flexible And Customizable Options:Every person is unique, as are their life goals and priorities. Savings plans take into account these variations in saving goals and provide a range of customizable features that can be tailored to meet the distinctive requirements of each person. 

Save Taxes: Savings policies, offer the same tax advantages as most insurance plans. Section 80C of the Income Tax Act, in particular, allows a deduction of up to Rs 1.5 lakh from your premium payments.

Financial Protection and Regular Payouts:Saving plans provide much-needed financial protection to your loved ones in the event of your unexpected death.

Achieve Your Goals Successfully:Some saving plans are explicitly designed to help people and families achieve their most significant life goals. For example, a structured saving plan will assist you in saving money and achieving high educational goals for your children.

The Right Way of Choosing the Best Saving Scheme?

Amongst the many, saving plans are surely one of the best investment plans in India as they are available in a wide range of schemes and variants. However, it's essential to first figure out your goals and investment preferences before determining the best saving scheme for your needs.

Make a list of your short- and long-term goals that will be aided by your investment in selecting the best saving plan. 

Include important considerations including the unique features of the best saving scheme, versatility, and extra incentives.

If you are still not sure, consider these essential factors while investing in the best saving plan for yourself and your family-

Profile and Risk Capacity

Determine your risk tolerance, to identify and select the best saving plan. Personal preferences and age are the two most important factors in determining how much risk an individual can tolerate. 

Investment Tenure

 An important consideration when determining the right saving strategy is the time duration that you plan to save your money. There are a variety of savings plans available that offer investors long-term to medium-term investment option as well as tax-saving investment options. 

Long-Term Objectives

You must be clear about your intent for making the investment. If you know why you need to save up and have a clear goal in mind, you can explore plans that will help you fulfil this target. Besides, you will also enjoy significant tax benefits for the same, if wherever applicable.

Adaptable Savings Plan

You must choose a versatile investment strategy to achieve all of your long-term objectives. So that you'll be able to meet any unexpected short-term needs. 

Costs of Various Savings Plans

Perhaps the most significant consideration you need to make when choosing a savings plan is its cost. When choosing the ideal savings plan, you must have a thorough understanding of the charges and rates involved. Before you decide to buy a specific type of savings plan, carefully understand the terms and conditions, your personal requirements, and affordability to make an informed decision. After all, what will be the use of investing in a plan, if you cannot continue paying for it in the long run.

The Way forward

It's never too early to start a saving plan and set yourself on a path to achieve important life objectives. Saving plan is the most preferred choice for all age groups, as it helps you in achieving your life goals easily. But remember to review and assess your needs and objectives, before deciding on a savings strategy. 

Disclaimer:

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.

Consult with your financial advisor before making any decisions on insurance purchase.

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time

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