Disciplined savings is critical to achieving your long-term financial goals. Whether you’re aiming to purchase a home, provide quality education to your children, or live a comfortable retirement life, a well-thought savings plan will add stability and take you closer to your objectives.
A feature-packed life insurance policy can supercharge your savings strategy while also helping you build a financial safety net for your loved ones. Here’s how-
- Life Insurance Encourages Disciplined Savings
A life insurance policy will require you to pay the policy premiums at regular intervals. Unfortunately, with most people, the commitment needed to follow their savings plan is lost only after a few months.
But a life insurance policy will make it compulsory to set aside a fixed sum every month/quarter/year for premium payments.
- Life Insurance Offers Protection
A significant reason why people work hard throughout their life is to give their loved ones a comfortable and financially stable life. A life insurance policy can help provide that same level of comfort and financial stability even after the primary breadwinner’s unfortunate demise.
The family members can use the death cover from the policy to manage everyday expenses, repay loans, pay for children’s higher education, etc.
- Tax Benefits
By investing in a life insurance policy, policyholders can claim tax deductions of up to ₹1.5 lakh under Section 80C of the IT Act.
Moreover, the maturity income is tax-free under Section 10(10D) if the policy premium is 10% (or less) of the total sum assured or if the sum assured is at least 10 times the policy premium. Also, the death benefit that the beneficiary receives on the policyholder’s demise is tax-free.
What are Some Popular Life Insurance Savings Cum Investment Plans?
Here are some life insurance plans that come with the added advantage of savings and investing-
- Participating Endowment Plans- The plan offers guaranteed maturity benefits with additional bonuses.
- Guaranteed Returns Plans- Non-market linked life insurance plans that invest only in fixed income securities to ensure risk-free wealth creation.
- Unit Linked Insurance Plans (ULIPs)- ULIPs combine investment with life insurance. A certain portion of the premiums is invested in equity, debt, or balanced fund selected by the policyholder to boost the potential of generating substantial returns.
- Money-Back Plans- These plans are similar to endowment plans but pay a certain portion of the sum assured at regular intervals while the remaining amount is paid on maturity, along with bonuses.
- Income Plans- Plans offer monthly, quarterly, or yearly income while growing the invested capital through bonus additions.
Boost Your Savings Plan with Life Insurance
A life insurance savings and investment policy effectively strengthen your savings plan and take you closer to your financial objectives.
Look for a reputable insurer and browse through the different types of life insurance products they offer to select one that best matches your requirements. You can also get in touch with the insurer for all the assistance you need to make the right selection.
Visit here to know more about Savings Plan: https://www.kotaklife.com/online-plans/savings-plan
