In these uncertain times, it’s crucial to ensure the financial security of your loved ones, especially if you have important goals to achieve, such as providing quality education to your children or a comfortable retirement for yourself.
But what happens if something unexpected happens to you? This is where a saving insurance plan comes into play. By investing in a reliable savings plan, you can rest assured that your family’s future will be secure even if something happens to you.
This article explores the importance of a saving policy during a pandemic and why it’s a smart financial move to safeguard your family’s future.
What Do You Mean by Guaranteed Savings Plan?
A guaranteed savings insurance plan is life insurance that helps you protect your life goals from unexpected events. It works as investment insurance by providing a guaranteed lump sum amount at maturity as long as you pay all your premiums on time.
Key Features of a Guaranteed Savings Plan
- Premium payment for a limited period, but life cover for the full term
- Guaranteed benefits on maturity if all premiums are paid on time
- Multiple policy terms and payment term options are available
- High premium booster for extra benefits on higher premium commitments
- Enhanced protection for your family, including lump-sum benefit on death
- Tax benefits under 80C and 10(10D) of the Income Tax Act, 1961
These features make a guaranteed savings plan one of the most attractive saving schemes and an optimal investment option for those looking to secure their future and achieve their financial goals.
Importance of a Guaranteed Savings Plan
A guaranteed savings plan is a financial product that offers numerous benefits to those who want to ensure their financial future. Investment insurance plans are also one of the many options you can consider; however, investments come with a set of risks as opposed to savings plans.
Following are some of the reasons why a guaranteed savings plan is a significant investment, especially after the pandemic time-
- Comprehensive Life Insurance
As unfortunate as it sounds, the pandemic resulted in a high number of casualties, leaving many families financially vulnerable. This is where a guaranteed savings plan can provide a safety net.
With a savings plan, you can opt for a life cover for as long as needed and even choose to pay premiums for a limited period instead of for the whole policy term. In case of unforeseen circumstances, your family will have the financial support to carry on and meet their needs.
- Choice of Policy Terms and Premium Payment Options
One of the significant advantages of a guaranteed savings plan is that it offers flexibility regarding policy terms and premium payment options.
This means that you can tailor your savings plan to meet your unique financial situation, ensuring that it aligns with your short-term and long-term financial goals. For instance, a saving scheme for women may offer greater flexibility in terms of premium payments.
- Enhanced Protection for Your Family
A guaranteed savings plan provides enhanced protection for your family, including a lump-sum benefit on death. In the unfortunate event of your demise, your family will receive a lump sum amount, providing financial security and peace of mind during a difficult time.
With a guaranteed savings plan, you can rest easy, knowing that your loved ones are financially protected even if something happens to you.
- Tax Benefits
You can also avail of tax benefits under 80C and 10 (10D) of the Income Tax Act 1961.
Under Section 80C, the premiums paid towards a Guaranteed Savings Plan are eligible for tax deductions up to a limit of ₹1.5 lakhs per annum. Additionally, the maturity benefits and death benefits received from the plan are also tax-free under Section 10 (10D), subject to policy terms and conditions.
- Guaranteed Benefits
A financial safety net is essential during uncertain times, such as a pandemic. A guaranteed savings insurance plan provides such a safety net by offering guaranteed benefits on maturity, provided that all premiums are paid on time. As a result, your savings and investments will grow over time, ensuring you have a lump sum amount available when needed.
Tata AIA Life Insurance provides these benefits in the form of added guaranteed bonuses (if declared), which are added every year based on the type of guaranteed saving policy you choose, which offers the benefits on maturity.
The pandemic has highlighted the importance of being financially prepared for uncertain times. A guaranteed savings plan provides an excellent way to secure your family’s future while ensuring that your financial goals are met, even if something unexpected happens to you.
Consider investing in a guaranteed savings plan to safeguard your family’s future and achieve your financial goals, especially during these uncertain times.