How to Choose the Right Savings Plan?

2020-12-05

875 Views

Begin securing your future

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

...Read more Consent is required

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

A savings plan is a life insurance investment plan that offers various prospects and is not limited to just saving money. It also helps in investing and multiplying your money efficiently and systematically. The investment will empower an individual to meet the financial needs of their family and fulfill their financial goals. This is because the savings-investment plan comes with numerous features to help individuals fulfill their financial goals.

There are particularly some saving plans that are preferred over others. For example, ULIPs are preferred due to the dual benefit of a life insurance cover and market-linked savings returns they offer. Also, ULIPs have an option of adding specific riders. These riders benefit from enhancing the financial protection of the policyholder and his family in case of any disability, illness, or accidental death.

Five Ways to Choose the Right Guaranteed Savings Plan

The market is full of several saving and investment plans, and every plan has its circumstances corresponding to it. It is essential not to invest in a wrong savings plan without thoroughly researching the fund and plan's assets allocation. One way of collecting information is by doing a proper background check about the features of saving plans. Many people decide to buy a savings plan online as it is a better way to avoid any brokerage or excessive and arbitrary charges. However, it is paramount to indulge in some self-study on the savings plan best suited for you.

To meet any unforeseen financial commitments, people save ample money and build a vast corpus. However, you need a certain plan to think smartly and always look ahead at the big picture. Let us explain what things should be kept in mind while doing so are.

1. Clarity of Financial Goals

Primarily, you have to make a checklist of the financial goals which you wish to achieve in life. It should be a structured goal for every step of your life, such as house buying, marriage expenses, child care, and early retirement. With this checklist, you will have a brief idea of how much money to set aside every month. If you are planning to invest in savings, preparing a checklist is crucial once you start earning.

2. Choice of Investment

Since you have many profitable options to save your money, you can benefit from it. Presently, ULIP is the best saving plan as it offers dual benefits of insurance and investment. Based on your risk profile, the premium amount is invested in equity, debt, or a combination of both of them based on your risk profile. It will thus give you a good return and secure your family financially during an unforeseen event.

3. Automatic Transfers

You have to set your salary account so that the money is automatically transferred to the investment account. Thus, a direct debit will not tempt you to hold back the money, since the transfers are done automatically on a specific date. However, if you have opted for manual transfers, you might skip saving for a few months.

4. Contingency Fund

Life is unpredictable, and thus you should always plan for contingencies or emergencies you might come across when you expect it the least. It is always better to set aside at least some percentage of your monthly salary for a contingency fund. Thus it will help you meet the unfortunate expenses with confidence. For this, you must choose highly liquid investment choices such as bank deposits because there might be a requirement for quick cash.

5. Wise and Planned Expenditure

To start saving regularly, you should cut down all of your unnecessary expenses. Always try avoiding the usage of credit cards as the interest rates on them are relatively high. It is advisable to use cash or your debit card while shopping. This helps you keep track of how much money you're spending, thus instilling a sense of financial discipline.

A good savings plan should also be instrumental in saving tax. According to the 80c of the Indian Income Tax Act, 1961, the premiums of most life insurance savings plans can be deducted from taxable income up to Rs. 1 Lakh. Besides, under section 10D of the Indian Income Tax Act, 1961, the benefits of maturity and death are also subject to tax exemption. Thus, the savings plan is the most preferred tax saving instrument.

With saving plans, people usually get a broader entry age with versatile investment tenure. The determination of the risk appetite of the policyholder is done by the entry age. Thus, a saving plan is planned out based on the risk profile of the policyholder. Since people in their 20s and 30s take higher risks to receive profitable returns, unit-linked insurance plans (ULIPs) will be suitable. Contrarily, the people who are reluctant to take risks are more suited for money back plans, thus keeping their money safe despite low returns.

Additionally, the mid-to-long term investment tenure allows depositing a significant corpus during the period.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

How to Choose the Best Insurance Plan that Gives Guaranteed Income?

How to Ensure a Regular Income Stream for Your Family?

Our Top-Selling Insurance Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.