Achieving financial security is a challenging goal in any individual’s life. It takes a lot of effort and time to secure yourself and your family during unexpected emergencies. Therefore, people resort to investing in financial products that provide good returns in the long term. Savings plans are also designated to serve such financial initiatives. However, it is distinct from other products in certain ways. Here are 5 unbeatable benefits that savings plans can offer.
Before discussing the benefits of savings plans, let us understand what it means.
What is a Savings Plan?
A savings plan is a financial product that will help you accumulate a huge fund by investing a specific fund regularly over a period. Various financial institutions offer different savings plan solutions to satisfy individual needs. In addition, insurance providers offer savings insurance plans that provide a savings benefit with the life cover.
5 Unbeatable Benefits Of Savings Plans
Here are 5 unbeatable savings plan benefits that you need to know.
- Plan for your financial goals – Savings insurance plans have a definite policy tenure. So, you can plan for your financial goals and invest accordingly through the policy term based on your necessity. For instance, suppose you want to save money for purchasing a new car or plan for your child’s wedding that can happen after 10 years. In that case, you can purchase a savings insurance plan for 10 years based on the funds required. You can calculate the amount required precisely by accounting for the inflation rate.
- Guaranteed returns – Savings insurance plans provide guaranteed returns at maturity. As the returns are not market-linked in the guaranteed return policy, the fund value does not fluctuate based on the market conditions like the financial securities investment. Also, the returns are guaranteed during policy inception. Therefore, you can evaluate the needs based on your family’s financial commitments to ensure the guaranteed returns and satisfy them based on the timelines.
- Flexibility – Savings plans in India are highly flexible. You can decide on the financial benefit, mode and frequency of investment and the payout options. For instance, the guaranteed return plan provides the regular income payout option. You can receive the payout at maturity as a fixed, regular income for a defined income period. Also, you can pay the premium throughout the policy tenure monthly, semi-annually or annually or for a limited term.
- Online compatibility – Gone are the days when you have to visit the nearest branch office of the financial institutions to purchase your savings plan. Now, you can read through the policy features, compare the cost and purchase the ideal product for your financial needs online. For example, when you purchase the Tata AIA savings plan, you can calculate the premium based on your requirements and further decide on the policy tenure. You can also monitor your investment and make any modifications cost-efficiently and comfortably at your place.
- Long term savings plan – The money savings plan benefits increase when you invest in the long term. In India, you can invest in savings plans between 10 to 40 years or even more based on the policy terms and conditions. The longer the policy tenure, the higher are your returns. You can conveniently choose a longer policy term to accumulate a huge fund when you start saving early.
Conclusion
Savings plans in India provide a range of striking financial benefits. It can help you plan for your financial goals by ensuring guaranteed returns. You can invest in the long term to reap higher returns and utilise the flexible features to customise the product based on your financial needs. Evaluate your needs, find the timelines, compare the savings plan options and choose the best product online for your financial requirements!