Mahi and Kiran both were friends from school and now taught as a lecturer in the college. Each of them had one child who went to school together. Both the friends were quite passionate about their child’s future. They wanted their children to grow together in whatever disciplines they would wish. Thinking high of their kids’ lives, the mothers planned to start saving as much as possible. The females learned that life is unpredictable and that, at times, unexpected expenses shake the family’s goal. Not willing to compromise on the education, both friends decided that they should start saving money as soon as possible.
Pertaining to the thoughts, both Mahi and Kiran burrowed the best possibilities on how to save money. Finally, they understood that frugality alone would not help and start investing a portion of their income.
Putting an end to their thoughts and journey of discovery, they decided to put their money in the best savings insurance policy. So, if you are also looking for a savings insurance policy, its propositions and want to identify how you should go about it, you must read under it.
What is a savings life insurance policy?
A savings life insurance policy is a type of life insurance plan that provides an opportunity to save and get life cover at the same time. It implies that individuals buying a savings plan had the opportunity to invest their money over a period of time. During the same tenure, you get a life cover through which your family gets protection if you die.
A savings life insurance policy is an investment that pushes you to keep a portion of money aside in a systematic and disciplined way. The idea and motive are to collect money for short-term and long-term financial goals of life.
Individuals willing to buy a savings life insurance policy can choose the amount of finances they can keep aside depending on their risk appetite. The savings plan:
- Helps you to accumulate wealth over a long period of time.
- Provides you with the benefit of insurance coverage.
- Allows you to file for Income Tax deductions under section 80C and section 10(10D).
Investing in a savings plan sounds sensible but deciding to put your money in any of these is a matter of evaluation. Before you can jump putting your money into any financial product, you must align your goals with your expectations.
The investment plans help you keep your hard-earned money in various money markets and enable you to attain your financial goals. The first step before investing your money is:
- To evaluate the financial needs.
- To examine your risk absorption capacity after investing the money.
- To pick a suitable investment plan.
Several investment plans are available in the market. You need to understand the processing and working of each product well in advance. Acquiring sufficient knowledge of how each instrument performs is crucial because you give away a portion of your earnings. Let us see the top savings insurance plan in India where you can put your money.
Top savings insurance plans for you to consider.
Some of the top investment financial products in India include:
- Unit Linked Investment plans
- Money-back savings plans
- Endowment savings plans
- Insurance and Savings
- National Savings Certificates
- Public Provident Funds
- National Savings Scheme
- Post Office Savings Scheme
Well, if you are looking for higher returns, you must consider the first two options. In this regard, some of the best savings insurance policies in India in 2021.
Best Savings Insurance Policies in India in 2021.
Here are the best savings insurance policies in India in 2021.
|Plan Name||Entry Age||Plan Type||Maturity Age|
|Aditya Birla Sun Life Insurance Income Assured Plan||8 years to 60 years||Endowment Plan||75 years maximum|
|SBI Life Smart Platina Assure||3 years||Endowment Plan||75 years maximum|
|Aditya Birla Sun Life Insurance Guaranteed Milestone Plan||30 days to 60 years||Endowment Plan||18 years minimum|
|Bajaj Allianz Life Goal Assure||0 years to 60 years||ULIP plan||75 years maximum|
|Max Life Savings Investment Plan||
|Savings and income plan||75 years maximum in single pay.
65 years maximum in regular pay.
|Max Life Monthly Income Advantage Plan||18 years minimum to maximum through the number of pays.||Savings and income plan||Depends on the number of pays.|
|Edelweiss Tokio Wealth Secure Plus||1 year to 55 years||Savings Plan||Depends on premium paying term|
|Canara HSBC Guaranteed Savings Plan||0 years to 60 years||Savings Plan||18 years to 75 years|
- ABSLI income assured plan is here to protect life goals that come with the guaranteed benefits. It is a perfect plan for creating a massive corpus of money for their life goals.
- These financial savings can be for a child’s education, child’s marriage, and other emergencies.
- The maximum age of renewal of the policy is 75 years; however, the entry age limit starts from 8 years to 60 years.
- The minimum sum assured for which you can choose the policy is Rs.100000.
- In this type of savings plan, the return of benefits is guaranteed after completing the premium paying term. Often people select the product when they look for regular monthly income.
- SBI Life Smart Platina Assure is a non-linked, non-participating endowment plan.
- This traditional life insurance policy assures you of savings with guaranteed returns. Individuals who choose the policy have the advantage of paying the premium for a limited term.
- The policy provides the option to pay a premium every month. It renders guaranteed additions like an extra benefit.
- The entry age of the individual covered must start from 3 years. The premium payment term varies from 6 to 7 years.
- ABSLI Guaranteed Milestone Plan:
- Aditya Birla Sun Life Insurance Guaranteed Milestone Plan provides the individual’s life cover with guaranteed financial benefits.
- The advantage of the policy can be drawn both at the time of maturity and at the sudden demise of the policyholder. This plan helps you with uncompromising life goals.
- The sum assured under the policy is 15 times the annualized premium you pay. The company provides guaranteed additions that further boosts the corpus.
- One plus factor with the policy is that the policyholder can get their spouse covered along with.
- The benefits under the policy can be drawn only when all the premium instalments are paid. Premium paying term under the ABSLI Guaranteed Milestone Plan is 6,8, 10 and 12 years. The minimum maturity age under the policy is 18 years.
- The Goal Assure Plan from Bajaj Allianz is a unit-linked non-participating life insurance plan. The policy helps the buyers save taxes, get the return of life cover charges, and earn maturity benefits in instalments.
- Under the return of life cover charges, the company returns the total mortality charges or life cover charges at the time of maturity, which they deduct throughout the policy term. Apart from this, you get a choice of investment from 4 portfolio strategies.
- The minimum entry age under the policy is 0 years, and the maximum age is 60 years. Individual buyers can get the maximum maturity age of 75 years.
- The policy term will be 5, 10, 15, and 20 years and the minimum sum assured will be 10 times the annualized premium.
- During the policy term, companies introduce fund boosters to enhance the returns on investment.
- It is a non linked participating individual life insurance plan that promotes savings for you. In the end, you can build a considerable corpus of money to support your life goals.
- Use the plan if you are looking for disciplined savings.
- The life savings advantage plan provides life protection to your loved ones in all contingencies. The buyer has the option of flexible premium payment tenure and policy terms.
- It provides a guaranteed lump sum amount on maturity. Max life savings advantage plan allows you to have tax deductions under Section 80 C and Section 10(10D).
- If you pay a single premium instalment, the age limit is 8 years to 65 years, but the regular pay is 0 to 45 years.
- Speaking of maturity, the minimum bar is 18 years, whereas the maximum bar is 75 years (single pay premium) and 65 years (regular pay premium).
- Max Life Monthly Income Advantage Plan is non-linked participating life insurance for individuals. The product is designed to keep the family secured and free from financial burden in your absence.
- The plan offers a monthly income up to 30 years after completion of the premium payment tenure. The accrued bonus includes a terminal bonus on maturity.
- This product is a savings plan that guarantees you monthly income. The minimum entry age under the plan is 18 years, and the maximum limit varies according to the number of pays.
- Similarly, the maximum maturity age varies with the number of pays. For example, if you have chosen 15 payments and 45 variants, the maximum age of maturity is 90 years.
- The plan allows you to expand the coverage with the following riders that include protection against any unfortunate incident that may lead to death and protection cover for your family in case of an accident.
- It is the savings plan to help you create a volume of wealth for your child’s future and other similar goals. The plan brings in the option of regular savings that make a significant impact on you. Not only you, the plan offers security to your spouse as well as your children.
- To get more returns, the company offers loyalty additions, booster additions, and maturity additions.
- There are three variants available of the plan, and you can pick anyone depending on your life stage. You can also choose the preferred premium and the payment frequency.
- The minimum and the maximum maturity age of the individual depends on the premium paying term. The base one plan’s minimum maturity age is 18 years, and the maximum is 70 years. For option 2, the maturity age is 100 years.
- The minimum sum assured is 7 times the annualized premium, and the maximum assured is 10 times the annualized premium.
- The Canara HSBC life insurance plan is an offering for guaranteed benefits provided all the premium installments are paid.
- You can customize your savings considering your financial goals.
- The plan offers flexibility to choose a premium payment term that is suitable for you.
- The guaranteed savings plan provides you tax benefit under section 80C and section 10(10D).
- Minimum age to buy the guaranteed plan is 0 years with the maximum age limit of 60 years.
- The maturity age limits under the plan are minimum 18 years and a maximum 75 years.
After seeing the types of plans, you can now read the benefits of buying top savings insurance plans.
Benefits of top savings insurance policies.
Savings insurance plans in India offers you these benefits:
- Long-term wealth accumulation.
- Financial protection for the whole life.
- You get to save income tax deductions under section 80C and section 10(10D).
- Life insurance protection provides security for the dependent members of the family.
If you now know the benefit of saving life insurance policies, it must be easy to decide whether or not you should have the procedure. If you choose to pick one savings insurance plan, you should consider these factors before investing.
Factors to consider before buying the best savings insurance policy.
Here are the factors to consider before buying a savings insurance plan:
- Investment duration: There are several options to choose from medium to long term investment. Considering the long term investment type, you can pick the ULIP plans that are significant to build a life corpus. You can start putting in a small amount of money. Apart from this, you can invest a considerable sum together, which strengthens your financial situation.
- Financial Goals: Decide what are your financial goals before you start shedding the savings. You must be aware of what you want in the end and will any product in the market help you attain the goals.
- Plan Flexibility: Evaluate how flexible is the plan and does it allow you to surrender the policy after the lock-in period. Though you have started investing the money for savings but times are unpredictable for which you will have to withdraw the money. Hence flexibility is an essential factor to consider.
- Risk Profile: One prime factor in analyzing before investing in the savings insurance policy is the risk profile. You have to choose your risk absorption capacity before paying the premium and getting into a contract. The need and demand of the policy can change, and hence you must be clear of the policy returns. If you are young, you must start with saving good money and invest aggressively. You can pick an endowment plan or money back plans if you are a risk-averse investor. If you fear losing money and cannot afford that, then being a wise investor is a better choice. On the other hand, those who look for lucrative offers must put their money in ULIP plans. These are market-linked products that fetch you returns based on the market operations.
- Charges of the savings insurance policy: Every insurance policy comes at a cost that the company charges from you. If you pay the premium instalments every year till the end of the policy tenure, the insurance company often returns these charges. The best savings plan will come at minimum charges and provide flexibility in terms of cash withdrawal, term of the policy and the benefits it offers.
Selecting the best savings insurance plan is not as simple as ABC. It involves a lot of research about the products to pick the one that suits your requirements. The market is flooded with different kinds of savings insurance products. But not all products can meet your needs, and hence it is best advised to consider the factors before you finalize a product. If you cannot decide on any product, it is best to speak to a company representative or research the product yourself. The quick tip is to understand the returns you will fetch from the product and gauge the premium paying capacity and terms.