Features of Savings Insurance Plans

Features of Savings Insurance Plans

The Covid-19 pandemic era has made everyone across the globe realise how uncertain and unforeseen times can be. It has shown why it is essential to have financial security for you and your loved ones to avoid any constraints in future. Another reason why it is necessary to be financially secure is the rising inflation and cost of living. The cost of education, marriage, medical expenses, etc., has seen a sudden rise in recent years. Moreover, it is essential to secure your loved ones financially even in your absence. In these uncertain and grave times, investing in a saving insurance plan has become necessary and crucial.

Having invested in a savings plan protects you and your family from financial burden in case of an unforeseen financial expenditure like medical expenditure, accidents, etc. As we grow up, our elders teach us the habit of saving money for future uncertainties and requirements. Moreover, we were also taught that saving today for a safer tomorrow is one of the best ways to secure yourself.

Let us understand what a saving insurance plan is.

What is a Savings Insurance Plan?

A savings insurance plan is a life insurance plan that lets the policyholder save and invest his money to financially secure himself and his loved ones. Savings plans are financial products that are designed to foster disciplined savings while providing steady returns that support you in achieving your financial goals. Moreover, investing in a savings plan helps a policyholder inculcate a habit of saving from time to time. You can look online for one of the best saving plans to secure yourself and your loved ones in uncertain and unforeseen times.

How to Choose the Best Saving Plan for Yourself and Your Loved Ones?

There are various types of saving insurance plans available today. Therefore, before investing in a saving insurance plan, it is essential to have a brief idea of your and your family’s financial requirements and goals in the coming years. Compare the saving insurance policies and choose the one that suits you and your loved ones best. Keep in mind the life cover you want and how much premiums can you pay for the saving insurance policy.

Features of an Effective Savings Insurance Plan

We all want to have a seamless and secure future and want to achieve all our goals: education, marriage, repayment of a loan, buying a house or a car, etc. Investing in a saving insurance plan is one of the ideal ways to pave a seamless roadmap for your future. Let us see a few of the salient features of an ideal savings insurance plan.

1. Financial Security of You and Your Loved Ones

Investing in saving insurance plan financially secures you and your loved ones. We all know how uncertain times and situations can become upon death of the sole earning member of the family. In such cases, especially if you are the only breadwinner of the family, a saving insurance plan provides a monetary backup to your family, even in your absence.

2. Fixed Returns

Saving insurance plan provides you with fixed guaranteed returns. Therefore, you do not have to worry about financial security and can be at peace.

3. Tax Benefits

The premiums you pay for savings insurance plan are eligible for tax benefits. Under Section 80(C) of the Income Tax Act, premiums paid are deductible from taxable income. However, tax laws are subject to change from time to time.

4. Flexibility in frequency/ mode of Payment of Premiums

Investing in a saving insurance plan gives you the flexibility of choosing the frequency of payment of premiums. Depending on your comfort and feasibility, you can pay your premiums on a monthly, quarterly or annual basis.

5. Add-on Rider Benefits

Most saving insurance plans have a feature of add-on rider benefits. Instead of buying a new insurance policy, you can get the add-on rider feature. Add-on benefits such as accidental death benefit, critical health benefit, etc., can help you financially secure yourself in such situations and help you get full coverage. Please note that riders are not mandatory and are available at an additional cost.

6. Tenure of Policy

A saving insurance policy lets you customise the tenure of the policy at the time of purchase according to you and your family’s requirements.

The above features give comprehensive information on how a saving insurance plan is ideal for investment and how it is a conclusive policy for the financial security of you and your family.

Benefits of Investing in a Saving Insurance Policy

A saving insurance plan is ideal for investing for a financial backup for your loved ones in your absence. Let us see how.

1. Flexible Payout Option

Another benefit of saving insurance policy is the facility of payout options. Most plans allow one to choose the payout option according to your own convenience – monthly, annually and recurring basis or lumpsum.

2. Helps Financially Secure Your Retirement

Who doesn’t want a stable retirement with peace of mind? With a saving insurance plan, you can financially secure your retirement. Over a period of time, you can accumulate your savings which can be used for pension or monthly income after you retire. Therefore, a saving investment plan will financially secure you and your loved ones even after you retire.

3. Secure Your Assets

In case you have a loan to repay and you face an untimely demise, your family might face a financial burden and might have to repay the loan against your assets such as a house, car, etc. With a saving insurance plan, you can secure assets in such cases and they will not have to face any financial worry.

4. Provision of Loan

Another benefit of a saving investment plan is that you have the provision of applying for a loan after you reach a specified amount of savings. Saving insurance policies have lower loan rates as compared to regular loans. With such benefits, it is easier and recommended for people to invest in saving insurance plans.

5. Additional Bonus Rewards

A saving insurance plan provides you with additional bonus rewards such as grantor bonus, terminal bonus, etc., if applicable

6. Investing at an Early Age is Beneficial

Another benefit of investing in a saving insurance plan is that the premiums you pay for the policy are much cheaper and pocket-friendly at a younger age than later.

Why is it Necessary to Invest in a Saving Insurance Plan?

Uncertainties do not have a warning. Unforeseen expenditures, be it health and medical expenditure, accidents, untimely death, etc., can create a financial burden for you and your family members. In an unfortunate event such as the death of the policyholder, your family might face a financial constraint and find it difficult to afford even the basic necessities of life. A saving insurance plan is ideal with benefits such as death benefits, tax benefits, etc.to financially secure your loved ones even in your absence. Moreover, with this policy, they will not have to face any financial restrictions and will be able to achieve their goals without any worry. With a saving insurance plan, you can achieve peace of mind.

Moreover, investing in a saving insurance plan helps you develop a habit of regular savings, which is necessary to inculcate in today’s time. It further ensures that you have a disciplined way of spending and financially securing your and your family’s future. Investing in a saving investment plan can help you achieve your long-term goals, such as a child’s education and marriage, buying a house or a car, etc. Moreover, you can save for your future with the benefit of tax savings.

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.

Suggested Plans

Bharti AXA Life Guaranteed Income Pro

  • A Non-Linked, Non-Participating Individual Life Insurance Savings Plan
  • 4 Income options to choose
  • Guaranteed 10% Addition of Annualised Premium (as per the terms and conditions of the policy)
  • Get all your premiums back at the end of the payout period under Long Term Income and Deferred Income variants
  • Flexibility to choose premium payment term or policy term

Bharti AXA Life Super Series

  • A non-linked non-participating individual life insurance savings plan
  • Range of investment duration and returns
  • Guaranteed money back benefits (provided policy is in force and all due premiums have been paid)
  • Income tax benefits (as prevailing tax laws in India that are subject to changes)

Bharti AXA Life Shining Stars

  • Non-linked, non-participating limited pay endowment Life Insurance plan
  • Designed to take care of the financial needs of your child.
  • Flexibility to opt between 2 Maturity Payout Options
  • Flexibility in Policy Term/Premium Payment Terms
  • A great short-term investment option for a child insurance policy.

FAQs on Saving Insurance Plan

What is a Saving Insurance Plan?

Savings plans can be considered as financial products designed to enable disciplined savings while delivering steady returns that help you achieve your financial goals. As they are primarily a life insurance product, these plans also ensure the financial security of your loved ones in case something happens to you.

Why should you invest in a saving insurance plan?

In an unfortunate event such as the death of the policyholder, your family might face financial constraints and find it difficult to afford even the basic necessities of life. A savings insurance plan financially secures your loved ones even in your absence.
Moreover, with this policy, they will not have to face any financial restrictions and will be able to achieve their goals without any worry.

What are the benefits of a saving insurance plan?

Few benefits of saving insurance plan are

  • Secures You and Your Loved Ones
  • Provision of Loan
  • Tax Benefits
  • Secures your valuable assets
  • Flexible Payout Option, etc.

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