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How do savings plans bolster your future?

Savings plans are the panacea for potential money problems that might crop up in the future. This article explains their utility in your portfolio.

It is a simple enough financial principle, but quite difficult to practice: the money you save today will create wealth for tomorrow.

However, there are many expenses competing for your attention and you are unable to save money like you wish to. You might end up with emergency expenses, or become unable to pay for your child’s dreams. Or you might need to close a loan but not have the financial wherewithal for it.

Instead of worrying about the future, you should repose your faith in the best saving plan in India.

Why try a savings plan?

A savings plan is an insurance product that offers you the dual benefit of regular savings and high returns over the period of vestment. You just have to pay the yearly premium on it, and you end up creating a good savings corpus on the money. Meanwhile, the plan pays back with high returns. In case of your unfortunate demise while the plan is still active, the benefits and earnings from the plan are passed on to your nominated family member(s).

Leading insurance providers offer a diverse range of saving plans in India. We break down how the best savings plans in India help you earn money: 

  • Some plans are of the traditional participating life insurance cum regular income kind, which offer a bonus when the policy tenure ends.
  • Other savings plans are traditional life insurance policies which offer guaranteed income every 5 years. They also add annual payouts of up to 9% of the annual premium you pay, apart from tax rebates on the premiums. There is also a maturity benefit.
  • Other kinds of savings plans double the premiums paid and return all your money in a lump sum when the policy matures. There are 3 separate policy term options under this kind of plan.
  • Some of the best savings plans are single premium ULIPs. You can partially withdraw funds against the plan after 5 years of payment, with the option to switch between 7 different funds for higher growth.

How a savings plan helps your future

Your wealth is not for your personal consumption alone. It takes into account the future needs of your family, from children’s higher education and their weddings, and from creating a retirement nest egg for yourself and your spouse to starting your own business. The money you make over the years funds a variety of personal and professional goals.

More to the point, saving plans in India serve to protect your loved ones in the absence of your income. Their dreams can still remain on track despite your absence.

Post Author: Fathiyya Al Shaikh

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