Introduction:

Life is uncertain - there are always circumstances beyond our control. While we cannot control how the world operates and affects us, we can make provisions for the uncertainties and the hurdles they might bring for us. Securing a life insurance plan is one of the foremost things we do to ensure we are protected in the wake of an emergency or for times when things go downhill. This is especially true for the financial aspect of such situations. On top of all the uncertainties that we have to provide for, there are also certain milestone moments in life that can incur heavy expenses - buying a new car, sending your child abroad for higher education, investing in a new property. Now consider a situation where an emergency strikes and all the savings you made for one of these milestones get eaten up in attending to the accident or the financial crisis. All your plans could come undone within moments!

This is why, in addition to the protection extended by a traditional insurance plan, it can help tremendously if you have some savings parked in a plan as well. This is why people are flocking to an insurance plan with a savings component in them. The best savings plan would provide you with an option to customise your savings horizon to key financial goals.

This is where protection and savings plans come to your rescue!

Let us see why it is prudent to get a protection and savings plan:

• Combined benefit of life cover as well as regular pay-outs A life insurance cover ensures that your loved ones are taken care of in your absence. It acts as a financial safeguard against untimely accidents and deaths. By including the savings element in the mix, you are enhancing the protection with the possibility of regular payouts.
• Inculcates saving habit: One of the most important benefits of investing in any savings scheme or plan is that it inculcates financial discipline. We are all aware of the importance of saving regularly - we are taught this from a small age, but actually setting some money aside as savings on a regular basis can be hard. Within the framework of a protection and savings plan, you can inculcate a habit of regular savings.

  For instance, the Canara HSBC Oriental Bank of Commerce Life insurance Invest 4G is a unit-linked life insurance plan under which you have various savings options along with a life cover. You are also offered a choice between 7 different funds and 4 portfolio strategies to invest your money.

• Maturity benefits: Protection and savings plans come with maturity benefits too. You receive this amount either because of the happening of the event against which the policy offers protection or because the policy has reached maturity. Upon maturity of the plan, you will receive the Fund Value based on the prevailing NAVs. Alternatively, you can also choose to receive the same in regular periodic instalments under a relevant settlement option.
• Tax benefits: Just like any other insurance plan, the best savings plans also come with tax benefits on the premium paid subject to the maximum limit provided under Section 80C of the Income Tax Act, 1961.
• Flexibility: You have a lot of fund options and portfolio strategies to choose from. It is also easy to make a fund switch, that is you can move investment between different funds like debt, equity and balanced funds in accordance with your risk appetite.

  In fact, most people revise their portfolio as the plan nears maturity. When the maturity date is nearing, you would want to steer clear of market fluctuations and safeguard the funds, so you might be inclined to invest in low-risk debt funds.

• Goal-specific-plans: Protection and savings plans are also often customised according to the goal you wish to achieve through these savings. For example, the Future Smart plan by Canara HSBC Oriental Bank of Commerce Life Insurance is an investment plan for your child to support his/her future. Having a dedicated plan for specific financial goals can help with better financial planning.

In short, you should opt for an insurance product that serves your financial goals well. The best savings plans will give you that extra cushion for a soft landing in times of financial troubles!