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.