The Importance Of A Savings Plan For A Secure Future
Updated On Mar 14, 2022
Saving plans are essentially a form of life insurance plans that offer individuals an opportunity to save, invest and accumulate funds to meet their needs in the future. They are designed in a way that helps policyholders develop a regular saving habit and enjoy significant returns at a time when they might need it most.
The right saving plans, with flexible features they offer for each individual’s specific requirement, can often prove to be some of the best investment plans in India. Moreover, saving plans offer insurance coverage which helps you safeguard your family’s financial future even in your absence.
Benefits of Saving Plans
Saving plans are the preferred investment choice for people who value the various saving and future-centered benefits these plans provide. Here are a few of such important benefits:
1. Coverage + Payouts
Being essentially a life insurance product, saving plans offer much-needed financial coverage to your loved ones in the event of your untimely demise. Apart from the payouts you receive from the saving plan, this added benefit of coverage helps financially protect your family in a more comprehensive way.
2. Encourages Financial Discipline
While being aware of the importance of financial savings is one thing, making those savings a regular habit in our lives is quite another. That is where saving plans prove useful. One of the greatest advantages of investing in a saving plan is that it encourages you to inculcate financial discipline in your life.
3. Offers Flexibility
Every individual is different, and so are their life goals and priorities. Saving plans take into account such differences in saving purposes and offer a wide variety of flexible features that can be customised to suit each individual’s needs. They offer options in funds and other investment criteria as well as options in terms and payouts. You can also switch around with your choice of investments as and when your risk appetite and capital needs change.
4. Helps Save Taxes
Since saving plans are essentially life insurance plans, they offer the same tax benefits offered by other insurance plans. In particular, you can avail an exemption of up to Rs 1.5 lakh towards your premium payments, as per Section 80C of the Income Tax Act.
5. Helps You Meet Goals Efficiently
Certain saving plans which are specifically geared towards meeting some of the most important life goals for many individuals and families. For instance, some saving plans are designed as investment plans to help you save up and meet the ambitious educational goals you may have set for your children.
6. Choosing The Right Saving Plan
As one of the best investment plans in India, saving plans come in a wide variety of products and variants across the board. To determine the saving plan that works best for your saving requirements, it is important to first sort out your own goals and investment priorities. Chart out your short-term or long-term goals that will be benefited from your saving plan investment. Moreover, finalise an investment horizon and narrow down on your risk appetite.
Other than these, you must also pay attention to the specifics of the saving plan you wish to opt for. Consider vital factors such as the saving plan’s unique features, the flexibility it offers and additional benefits such as add-on riders.
It is never too early to invest in a saving plan and get started on your journey towards achieving important life goals. Saving money gives you a way out from uncertainties of life and provides you with an opportunity to enjoy a quality life. Putting aside a sum of money in a systematic manner can help you steer out of many hurdles and obstacles in life.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.