Savings and investment are two different concepts that appear to be highly confusing in the eyes of many. You may think both saving and investment means the same. However, this is exactly where you go wrong. Both saving and investment are based on different ideologies and serve different purposes. A careful perusal is what’s needed in the first place before you decide on choosing the best saving plan. And at Canara HSBC Life Insurance, you can choose the best savings plan as per your life goals to save or invest.
Difference between Savings and Investment
The fundamental aspect of saving and investing money is to understand what comes first.
Saving money is the act of parking money in safe and liquid accounts or securities. Whereas investing money means using it to buy a productive asset-backed by some safety. Stocks, bonds, or even real estate makes for effective investment tools.
Now that the difference is understandable, the next major question would be when to save or invest and how much to save or invest. Saving comes before investment as a golden rule. Only when you have enough money saved to cater to your needs, you should think of investing it.
Why should you Buy the Best Saving Plan?
To save for a secure and safe future – a savings plan is the right tool as it offers a life cover along with a saving avenue. You might feel confused as you come across different saving policies and plans that provide you with the best way to save your wealth. However, at Canara HSBC Life Insurance, you would be assured that your savings are put into the best policies and plans that allow you to make disciplined savings.
It has the best saving plans and policies be it traditional investment plans or the new-age and current policies. These plans are conventional and different from the unit-linked insurance plans. There is no role of capital markets; hence, no market linkage. The insurance laws govern the working of such policies.
Buying the best saving plan can help you with the following:
1) Standard and regular savings
2) Assured returns
3) Tax benefits
4) Incentives in the form of bonus
5) Life covers that provide you with an additional level of security
6) Makes it easy to avail secured loans against the policy
These plans require money to be locked-in for almost 10-20 years, and there is no way to withdraw the amount before the term gets over.
Nonetheless, saving plans also aim to offer their customers tax benefits, terminal illness benefits, and also cover death benefits. These life insurance plans are futuristic and promise nothing but financial security for your family.
However, before choosing the best saving policy, remember to be sure of the following factors that ought to determine your decision to save in a particular plan/policy:
1) Risk parameter
2) Investment tenure
3) Final objectives
5) Specific plan attributes
6) Minimum costs/charges
Why Choose Canara HSBC Life Insurance for Buying the Best Saving Plan?
Canara HSBC Life Insurance helps you grow your money and accomplish your financial goals through a systematic investment procedure. The returns are payable to the beneficiaries depending upon their needs and the preferred plan.
1) It is one of the trusted choices of India’s leading public-sector banks and individuals seeking to secure their families’ future.
2) It provides all-inclusive life insurance policies to initiate a smooth premium payments process as well as claiming process.
3) With years of experience and expertise, Canara HSBC Life Insurance has a huge family of happy and satisfied customers worldwide.
Three Types of Saving Plans offered by Canara HSBC Life Insurance
If you are looking for comparatively modern plans in their approach, then Canara HSBC Life Insurance provides its customers with various saving plans and policies that suit the distinct needs of each customer. Saving plans resemble life insurance products and yield steady returns throughout the term.
The possibilities that they provide for you to save your money are immense.
1. Endowment Plans
a) These kinds of plans blend both life insurance and savings, thereby allowing the policyholders some regular savings.
b) These plans are the most traditional ones available in the country.
c) The key highlight of such plans is that if the policyholder lives through the term period of the policy, he would be eligible to get paid a lump-sum amount at maturity. On the other hand, if the policyholder dies before the policy term gets over, his beneficiaries must be paid the entire sum of money assured by the policy.
d) If you want to invest in an endowment savings plan that makes it easier for you to achieve your goals by saving regularly and gives you assured returns unbothered by the market fluctuations, then the Guaranteed Savings Plan offered by Canara HSBC Life Insurance would be the appropriate choice.
e) Another such plan that focuses on wealth creation and has specifically been designed to support your needs through each stage of life is the Smart Lifelong Plan.
2. Money-back Plans
a) These plans are closely similar to the endowment plans such that these are also a mix of insurance and savings.
b) However, the basic difference is in the manner of paying the benefit. These plans do not pay a lump-sum amount at maturity. Instead, they pay the assured sum at periodic intervals. If the policyholder survives the policy term, he stands eligible to be paid the balance sum. However, if he dies before the policy term ends, his beneficiaries get paid the complete sum assured irrespective of previous payouts.
c) This policy’s basis is to provide flexibility and freedom to the policyholder to use his savings if he wishes to.
d) What makes it the best savings plan is that it provides liquidity, life insurance cover, and security unfettered by market fluctuations.
3. Unit-linked Insurance Plans
a) Under these plans, you can make any modifications in the entire sum assured, anytime during the policy term.
b) These plans provide an alternative to the policyholder to choose between linear, increasing, or decreasing sum assured. Similarly, premium payment can also be modified, and the policyholder again has a choice to choose if they wish to pay monthly, quarterly, half-yearly, or annually.
c) ULIPs are designed to cater to the distinct financial objectives of each policyholder. There are three types of savings plans under this category; single/regular premium plans, life stage-based/non-life stage-based, guarantee/non-guaranteed plans.
d) The most credible saving policy plan is the Canara HSBC Life Insurance Invest 4G Plan. It allows the policyholder an opportunity to choose for the best possible plan and save for the future while maximizing his savings by adding back to it in the form of Loyalty Additions and Wealth Boosters.
e) Titanium Plus Plan is a similar one that promotes protection and investment, thereby boosting your savings. It is equally flexible and allows modifications too.
Your rationale behind saving and investing might be different. Both the new ULIP saving schemes and traditional plans offer distinct benefits. ULIPs focus on wealth creation by encouraging capital markets’ involvement while traditional policies go unaffected by the same and make for a safer alternative. However, to each it’s own. What is necessary here is to know the correct balance between saving and investing. With the best saving policies from Canara HSBC Life Insurance, you get to choose the one that matches your aspirations and expectations.