Savings play a vital role in meeting expenditures as well as life goals. As we grow older, the requirements and responsibilities enhance with time too. Therefore, gradually, the need and importance of having money in hand also enhanced. In such a scenario, it is the savings as well as other investment policies that help a person in dealing with expenditures.
Moreover, as life is uncertain and the source of income is not fixed, it is essential to keep saving money from the very beginning. Until the 20s, the major expenditures are taken care of by parents. But, thereafter, as one starts earning, it becomes our responsibility to plan our finances in a way that can take care of our life goals. Amongst a plethora of investment avenues, one such plan that truly stands out is a savings plan.
A savings plan is a type of life insurance cover or an insurance savings plan which promises a life cover and guarantee cover. The savings plan helps the policyholder in saving money and helps in creating a corpus which will be helpful in meeting expenditures such as retirement, children’s education, wedding expenditure, spouse expenses, etc. But let us start by understanding the importance of saving money.
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What is the Importance of Saving Money?
Saving money from time to time can help you in acquiring a stress-free life. One should follow the rules of savings so that one can earn more, save and spend appropriately in later life. It is essential to be disciplined in life to achieve one’s financial goals according to financial planning.
One should check out different long-term savings options which will promise a guaranteed return as well as save money. Elderly people have always been advised; that money saved is money earned. It is absolutely true if one sees it with a practical approach. As life is unpredictable, one should have the habit of saving money to fulfill all the needs without any hassles. Thus, saving money is essential to living a financially strong life.
Savings Plan – A Smart Avenue to Fulfill your Life Goals
With innumerable life goals to achieve, a saving policy truly comes as a saviour. It is one of the most sought-after investment avenues that should be considered during financial planning. There are several insurance service providers, such as Tata AIA Insurance, that provide different saving plans.
For example, Fortune Guarantee Plus or FG+ plan promises a guaranteed income to the policyholder. Plus, it covers critical illnesses, gives a return on premium as well as imparts tax benefits. Similarly, there are other savings policies which promise several saving plan benefits to the policyholder.
A savings plan helps the policyholder and his/her family members in fulfilling their life goals. Read more and learn about it in detail.
1. Entering the marriage stage
A comprehensive savings insurance plan helps the newlyweds in planning a secured future. Marriage enhances responsibility. Thus, it is very important to take care of one’s spouse and secure their future. In times of uncertain events, the savings plan will provide adequate financial support.
Also, if the policyholder survives the policy term, then they will get an assured return which will help with different expenses such as vacations, home loans, children’s education, retirement planning, etc.
2. Entering parenthood
Welcoming a new life is not an easy thing. It does require proper financial planning. A savings plan imparts great support to sail smoothly throughout parenthood. With the rise in inflation and growing expenditure, a saving plan helps parents in securing the child’s future.
With a smartly planned savings insurance plan, children will be able to receive higher education as well as will cover financially in case any unfortunate incident happens.
3. Moving into the retirement phase
It is very important to live a stress-free time in your golden years, i.e., retirement. A saving plan helps the policyholder in securing a corpus of funds which will help them in living and enjoying their retirement time.
Everyone dreams of living a retirement time wherein they can enjoy the time without depending upon anyone. The savings plan is one such way which can help you in living this time to the fullest.
4. Guaranteed death benefit
The benefits of a savings plan in India cover guaranteed death benefits as well. In times of unprecedented events or the unfortunate demise of the policyholder, the insurance service provider gives the entire sum insured along with a guaranteed death benefit to the family of the policyholder.
This will aid them in facing the circumstance as well as fulfill their requirements ahead without depending upon anyone.
5. Premium payout
The policyholder can pay the premium for the savings policy at their convenience. They can go for either monthly, quarterly, semi-annual or yearly premium payments. This will help them in planning other expenses too as well.
6. Add-on riders
The policyholder can add riders to the savings policy, which will increase the scope of the policy. However, the policyholder has to pay a higher premium, but the benefits against it are many.
By adding extra riders, they can safeguard one’s family and prepare a financial corpus to deal with unforeseen circumstances and emergencies. Also, they can opt for a loan against the savings policy.
Conclusion
Now that you know how important a saving plan is in fulfilling life goals, the time is now to buy one. One can check different plans online and go for the one that suits your requirements. In case you are unable to decide one for yourself, then you can definitely seek professional or expert help.
Also read: The Right Way to Incorporate Gold into Your Personal Savings
