If you want to live your life comfortably without having to worry about your future, then you must adopt the habit of making savings as early as possible in your life. The money you save today will help you tackle the unprecedented events of the future.
However, when it comes to savings, it is important to align your investments in the right way to make the most out of your capital. A savings plan is a great investment instrument to save for the future effortlessly without any failure.
With these plans, you can ensure proper financial safety for your loved ones by accumulating a significant corpus of funds to help them sustain a normal lifestyle, even in case of your unfortunate demise due to any reason.
To generate wealth with proper reliability, you can consider investing your capital in savings plans and gain returns over time, without even risking your principal capital. This article aims to provide you insights on everything about these plans and how they can help you in the wake of the pandemic.
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What Are Savings Plans?
Savings plans are a kind of non-linked and individual insurance policy that helps you safeguard your family’s future and allow them to sustain a proper lifestyle in case of your unfortunate death. It offers monetary resources to your family in either lump sum or recurring payment.
Moreover, these plans also include a wide range of add-ons to help you enhance your coverage. There are even some insurers that also offer maturity benefits along with the standard set of features available in the plan.
The add-ons also allow you to increase the overall corpus amount that allows you to fulfill your future dreams and aspirations in life. With a good savings plan available at your disposal, you can easily take care of several financial liabilities.
Whether you want to repay a loan or support further education of your child in a foreign university, everything can be covered with the help of funds accumulated through a savings plan. It can virtually cover everything that requires an ample number of monetary resources.
When you begin investing in these plans, you’re liable to give a small fraction of your income in terms of premiums towards the policy. This amount adds up to provide you coverage for your future. There are various other benefits as well such as maturity benefits, tax benefits, and so on.
Additionally, even if you have any specific goals or aspirations in mind that you want to accomplish in the future then a savings plan allows you to accumulate funds for that too. Whether you want to save for your child’s higher education or fund a business, these plans allow you to do so without compromising on your present lifestyle.
To make the plan more personalized as per your lifestyle, you can choose from various policy terms available. These policies can also be used as collateral for banks to gain loans in case of any financial emergency that you may encounter in the future.
How Savings Plans are Fruitful in The Pandemic?
Savings plans, by their nature, are very different from other life insurance plans as they are specifically designed for wealth accumulation. As the pandemic has already caused unemployability, these plans can help you stay protected against the odds of this pandemic.
These plans offer you cover for the entire policy term, while you only have to pay a limited number of premiums. Moreover, in case you think that the ongoing situation won’t be suitable for this plan, you can also choose varying premium payment terms for added flexibility.
Some of the best savings plans also provide guaranteed returns and regular add-ons that grow your financial corpus even more. You can always have peace of mind knowing that your principal amount is always safe no matter what.
Regardless of the volatility of the market, a savings plan focuses only on consistent and regular savings. Once the tenure of this policy is finished, you can start enjoying the various benefits offered by these plans.
Furthermore, you can even choose to withdraw the various benefits right at the time of maturity of your policy. For investing in a savings plan, you don’t even need to undergo any medical assessments, and it is pretty easy to get approval for these plans.
It even offers a death benefit to your family in the event of your unfortunate demise amidst your policy’s tenure. The maturity benefits offered by these plans consist of a total sum of premiums you’ve paid towards the policy and benefits received through guaranteed add-ons, along with the principal amount.
These plans are even eligible for tax deduction and benefits under the section 10(10D) and 80C of the Income Tax Act of India, 1961. This states that the premiums and maturity benefits associated with the plan are completely free from taxes.
With such an impeccable list of features, you can always make sure that you and your loved ones are protected against the unprecedented times of pandemic by allowing you to have a pool of financial resources, ready to be utilized in case of any emergency.
Bottom Line
The pandemic has already left millions of people struggling to afford even a single meal. While this feels disheartening, you can avoid falling into such a situation through proper savings and investments. That’s why it is necessary to invest in the best savings plan as early as possible.
With a savings plan, you not only gain the ability to build a financial corpus for your family’s well-being but also get a chance to save money for your future dreams and aspirations. Therefore, make sure you start saving money with a savings plan as soon as possible.
