As you get older, your responsibilities start to grow as well. Hence, financial security becomes a need rather than an aspiration. To achieve comprehensive financial security in the long run, at least two aspects need to be taken care of – wealth building and life cover. These aspects play a key role in allowing an individual to fulfil their needs & wants and keep their family financially safe, with or without them around.
While achieving these goals may seem like an uphill battle at first, you can achieve them with the right planning and consistency. Having a suitable savings plan in your portfolio should help.
How Do Savings Plans Work?
Savings plans are a way to get life insurance as well as grow your wealth over the years. Two of the primary benefits of these plans are the maturity benefit and death benefit. With the maturity benefit, when the plan matures, the policyholder can expect guaranteed additions on the premiums paid into the plan. The death benefit allows you to offer a better financial future to your family. If the person insured were to pass away before policy maturity, their nominee may claim the death benefit and receive a sum assured.
While this is the basic framework of how savings plans function, the details of the features and benefits offered tend to vary across insurers and plan types. Nonetheless, these plans are a way to safeguard your vision for your future, as well as the well-being of your family.
Why Should You Get One?
If you are looking to build a financially stronger future, savings plans may be the tool you need to do so. Let’s look at a few reasons why you should get such a policy.
- Life Cover
If you have dependants, or expect to have any in the future, having a life cover is quintessential. Life can throw unexpected challenges in anyone’s way. While you may hope that it does not happen to you, you cannot guarantee what the future holds. Getting life insurance is a way to stay prepared for the worst and continue hoping for the best. This way, you can rest assured that your family may not have to face any financial ordeals in the future.
- Consistent Savings
With such plans, you are required to pay regular premiums. This allows you to make saving into a habit, thus allowing you to become financially stronger over time. Through such a disciplined approach, you may be less likely to stray from the habit of saving and divert your money towards impulse decisions.
- Guaranteed Returns
Most savings plans are not market-linked, i.e., your returns are not vulnerable to market fluctuations. When buying these plans, you may use a savings plan calculator to get a better idea of the returns you can expect from the premium you are willing to pay. When you know what you may expect from the plan, it may help your plan better for your future.
Today, there is a range of savings plans available. The key to making the best of such a plan is to choose one that suits you the best. Take the time to compare plans and their features, so you make the right choice.
