As we grow through life, we understand how important it is to have a decent financial plan in our life. Among the many approaches taken towards financial planning, one of the most basic and crucial steps is to build the habit of savings. When you save on a regular basis, you are building a stable future for yourself. Insurance companies have realized the rising demand for savings-based solutions and, therefore, have launched life insurance guaranteed savings plans.
What is a savings insurance plan?
A savings plan is essentially a life insurance plan which provides individuals with the ability to save funds to build a financial corpus, along with a life cover. These monthly savings plans are designed in a way to assist policyholders in building a regular saving habit and benefitting from significant returns when they need it the most. Additionally, they provide life cover by offering a predetermined sum assured to the nominee in case of the life assured’s death.
As the money is invested in low-risk and zero-risk funds, savings plans offer guaranteed returns on the money invested. As a result, these plans are also known as Guaranteed Returns Insurance Plans.
A savings scheme will provide you with the ability to save well and help you achieve your life goals in a systematic manner. In the event the policyholder passes away, the policy will provide your loved ones with the financial support they need.
Let’s look at how a savings plan with life cover will help you at different stages of your life:
- When you get married:
When you get married, you are getting a partner for life. Therefore, it becomes important that you ensure a safe future for your spouse. With a comprehensive savings insurance plan, your spouse will get the appropriate financial support in the event something happens to you. However, if you survive the plan’s tenure, you will be rewarded with assured returns that will help you manage the financial aspect of the different life events like vacations, house remodelling, etc., you had planned with your spouse. Many insurers also allow savings insurance policyholders with the ability to cover the spouse in the same plan.
- When you begin parenthood:
One of the main reasons you purchase an insurance plan is to ensure your loved ones will be financially stable if something happens to you. When you become a parent, you wish to provide your children with the best future. However, it can be quite demanding with the changing lifestyles, education expenses and the rise in inflation. With a savings insurance plan, you can invest your funds smartly and ensure your children’s future does not get affected. With a decent savings insurance plan, your children will get the following benefits:
- They will get access to funds that will help them get a decent education when you’re not around anymore.
- The plan will provide them with a financial safety net if an unfortunate event occurs and live their life with dignity and financial independence.
- When you are planning for retirement:
If you wish to achieve financial freedom in your golden years, you will have to plan well in advance. When you see a retirement planning Perth specialist and start your savings plans at a young age, you will benefit from them in the long term. The plans also build an annuity which can be further invested to provide you with a rise of a steady flow of income. With an effectively planned savings plan, you will not have to look elsewhere for getting the required funds during your retirement. Along with this, many savings plans also provide individuals with the ability to select how they wish to get paid. These plans also help individuals protect their savings from inflation.
Summing Up
If you’re planning to secure your future with insurance coverage and assured returns, you must opt for savings plans. With a comprehensive savings plan, you will be able to meet the different stages of your life head-on. From your child’s education to your retirement house, the savings plan will assist you at every step.
