Know These 3 Features and Benefits of a Savings Plan

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The rise in inflation rates and cost of living has made it difficult for us to manage our day-to-day expenses and save an ideal amount of money for the future. Unforeseen mishaps can often lead our family and us to face hassles and hard times. That’s why we must be prepared for what’s coming and ensure that our family and we are well protected. Having a financial backup ensures that even if we are facing any hardships in life, our family and us are secure and are able to face the situation without any hassle. Moreover, it also helps us fight the rising inflation rates and make sure we are able to achieve our goals and dreams without any financial constraints.

A savings plan has become one of the most preferred plans by people all over the country for financial security for their families and themselves. A savings plans is one of the best forms of insurance plan, which lets the policyholder save and invest his hard-earned money for future financial requirements. Moreover, it helps the policyholder develop a habit of saving on a regular basis and provide a lump sum amount of money in difficult times when they need it the most.

Want to know more about the features and benefits of investing in a savings plan? Read on.

3 Features and Benefits of Investing in a Savings Plan

  1. Financial Security

We never know what is coming for us. Unforeseen mishaps such as the untimely demise of the breadwinner of the family. In such cases, the financial burden can fall upon the family and can make it difficult for them to manage for the coming years. This can make it difficult for the family to manage their day-to-day financial requirements and can often create hassles while achieving their long-term plan goals and dreams. A savings plan provides a lump sum amount of coverage to the family in such cases. This ensures that even when the breadwinner is not around to provide for them, the family will be well protected and won’t have to face any financial constraints in future.

  1. Tax Deductions Benefits Under Savings Plan

Another key feature is that this plan is a tax savings plan. In other words, the savings plan offers the benefit of tax deductions under Section 80C of the Income Tax Act. 1961. The policyholder can claim up to Rs. 1.5 lakhs of tax deductions in one year. However, tax laws are subject to change from time to time.

  1. Additional Rider Options Feature

Opting for additional features and benefits under the savings plan is beneficial. It increases the benefits options and increases the cover you have opted for. However, to avail the additional benefits, people invest in multiple policies, which can often create confusion and hassles. Choosing the additional rider benefits under the savings plan provides the policyholder with additional features under one policy. This further saves the policyholder from the hassle of investing in numerous policies. The policyholder can choose from various additional rider benefits, such as waiver of premium rider benefits, accidental death rider benefits, critical illness rider benefits, etc. Please note that riders are not mandatory and are available at additional cost.

A savings plan ensures that you and your family are ready for the future and can manage their financial requirements for the future seamlessly. Moreover, it also gives you peace of mind and ensures that you can continue with your life without any worry. Now that you know why investing in a savings plan is crucial let us tell you that it is also necessary to choose a leading and trusted insurance providing company.


David Cohen

Rachel Cohen: Rachel is a sustainability consultant who blogs about corporate social responsibility and sustainable business practices.

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