Savings & Insurance Services (Self Employment)

Benefits Of Saving Plans In India

One of the first financial habits we are taught right from the earliest days of our childhood is that of saving. The concept of setting aside a little today in order to enjoy a lot tomorrow is ingrained into every goal we strive for in our lifetimes. It is keeping this fact in mind that saving plans are considered by many to be some of the best investment plans in India.

Let us discuss in detail what saving plans are, how they can benefit an investor looking to save for the future, as well as how to choose the right saving plan for your needs.

What are Saving Plans?

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

ght 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:

• Coverage + Payouts: Being essentially a life insurance product, saving plans offers 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.
• 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.
• 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.
• 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.
• 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.

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.