Saving plans are a type of insurance plan that covers all of yourself and your family’s future financial needs by investing in the premium payments in a systematic and disciplined manner.
The saving plans are designed for both long term and short-term aims of an individual as per the desired requirements. These plans are also flexible to bend according to one’s risk appetite, hence suitable for every individual to contribute to the betterment of themselves well.
Recently, there is a large hike in the enrollment of saving plans. The reason behind this hike is the higher returns of 8.56% and stability saving plans provided as compared to Fixed deposits that are running on lower returns of 4.36% in the current scenario where the inflation rate in India is above 6% last year.
The main reason for individuals investing largely on saving plans is because of their flexibility to provide plans as per the requirement and higher returns they offer along with vast unique features that no other scheme can coincide. Let’s closely examine the vast features of saving plans.
Features of saving plans
There are many types of best-saving plants available to select for an individual as for their requirement. But all the saving plans follow features and functionalities that are special to them in comparison to other investment schemes out there. Let’s see these specialities of saving plans.
1. Limited Investment Duration
The very first advantage of saving plants over other schemes is its flexibility of covering long term as well as short term durations as per the desired requirements. It is obvious that as one’s age increases the responsibilities and expenses also increase. So with these responsibilities the priorities also shift like today your focus is to build a house for the family but after 5 years it’s to save for higher education for your children. In this scenario saving plans offer to save for short-term aims achievements and then shaft to new larger aims.
2. Loan against policy
The common mindset regarding a saving plan is to invest for a long-term duration. Even the experts advised the same because in this way you avoid the market volatility and fluctuations and with the power of risk averaging and compounding you can create a large financial corpus.
But there are sudden cases in which one requires the financials before the maturity of the saving plans for any particular need. In this scenario, an individual needs immediate funds but the policy is not an option because the surrender value is too low. So only in saving plans, one can take out a loan on a running policy without disturbing it, and that too at lower interest rates. Then once your need is fulfilled either repay the loan amount or it gets deducted from the funds insured get after the maturity period.
3. Broad Entry Age and Investment Tenure
The age and risk appetite of an investor is linked together. The savings plans offer broad ages like from 18 to 75 years. So one can select their aim and also select an option as per the risk they can bear to fastly acquire the desired goal.
4. Vast Benefit range
The saving plans offer a vast variety of benefits like that when you fit maturity benefits, loyalty benefits, Rider benefits, tax benefits, etc. Apart from these common benefits, various insurance companies provide their additional bonuses like participating bonuses in which the insured gets returns from company profits as dividends, which enhances the value of saving plans.
Best Savings Plans available in India
There are many saving plans available but most of them are not up to their promises hence spreading falsehood in the market. Here are some most reputed best saving plans that come with vast functionalities and promise higher returns.
1. INVEST4G by Canara HSBC Oriental Bank Of Commerce
INVEST4G by Canara HSBC Oriental Bank Of Commerce is a plan that primarily focuses on savings and protection where only a small part compared to the insurance part is invested in the market to reduce the risks and major focus in on desired aim and insured family protection.
INVEST4G by Canara HSBC OBC is one of the best saving plans to provide broad policy functionalities like a loan on policy, large compounding benefits, etc that helps you in every possible sense to achieve any desired goal. It also provides benefits like loyalty benefits, death benefits, maturity benefits, etc to provide all standard protection aspects.
2. HDFC SL Super Savings Plan
HDFC SL Super Savings Plan is a participating regular payment plan that provides additional functionality like a simple reversionary bonus, interim bonus, terminal bonus, and much more to enhance the financial corpus the insured is saving for themself and their family goals and protection.
This is a plan that comes with endowment options means the dual benefits of insurance and investment for higher recurring return along with a primary focus on protection as well. The funds are invested as per the expert advice and the insured have the option of transparency over them to change according to their own experience and knowledge. Along with unique functionalities that HDFC provides from themselves it also comprises standard benefits like maturity benefits, death benefits, etc.
3. Aegon LifeiGuarantee Savings Plan
Aegon LifeiGuarantee Savings Plan is a traditional insurance plan that comes with a flexible and balanced option of investing to maximize the returns for the desired goals of the insured person along with their family financial needs and protection.
The unique aspect of these saving plans from Aegon is that they provide 135% of maturity benefits and that too with the option of settlement options in instalments of every 5 years during the policy tenure. It comprises other standard benefits of death benefits, tax benefits, etc.
4. Bajaj Allianz Save Assure Plan
Bajaj Allianz Save Assure Plan is a non-participating type of endowment plan that comprises functionalities of limited premium payment terms, lump sum or monthly instalments, discounted premium, higher sum assurance, and much more. The plan is trustworthy by many Indians because of the bajaj market value and the number of unique add-ons it delivers as promised in comparison to any other savings plan.
This plan also provides standard benefits of maturity benefits, death benefits, and tax benefits on all three aspects of a savings plan that are premium instalments, investment, and withdrawal of the funds, and returns on investments.
saving plans is an essential need of any individual living in India because of increasing inflation rates and social security prices day by day. No other investment scheme like fixed deposits which was popular in the past is now in decline due to a lack of returns to compensate for the current needs.
Hence everyone should invest for their future goals and ensure their family from future financial drawbacks. Hence best saving plans are vital because it compensates for both the needs of investments and insurances at the same time.
This guide helps you to understand the functionalities of saving plans and helps you select one that most suited you.