- What is a Savings Plan?
- Its Types
- Its Benefits
What is a Savings Plan?
A savings plan is a category of life insurance plans specifically designed to offer dual benefits of savings and insurance under the same. Like other financial investments such as mutual funds, and private equity savings plans also offer a structured systematic growth of your investment. These plans come with two different investment options: guaranteed and non-guaranteed returns, which typically depend on the chosen investment option.
Types of Savings Plans and Schemes:
Unit Linked Insurance Plans (ULIPs)
Unit Linked Insurance Plans ULIPs are a combination of insurance with investment. A portion of your premium goes towards life insurance, while the rest is invested in equity, debt, or balanced funds depending upon plan to plan.Endowment Plans
Endowment plans are categories of life insurance plans. They also offer the dual benefit of savings as well as insurance. The returns on endowment plans are fixed at the time of the purchase and they are not subject to market conditions.Monthly Income Plans
Monthly income plans offer a steady stream of income for a set period. These plans also offer both savings and investment options.Money Back Plans
Money-back plans offer regular guaranteed income throughout the policy term and lump sum maturity benefits after the policy tenure. These plans offer both investment and insurance benefits in the same plan.
List of Best Savings Plans as of September 2024:
| Plan Name | Entry age | Maturity age | Policy term | Sum assured |
|---|---|---|---|---|
| HDFC Life Sanchay Fixed maturity plan | 1 year to 65 year | 18-65 years | 5 - 40 years | 12 thousands - 25 lakh |
| HDFC Life Sampoorn Samridhi Plus | 1 year to 60 years | 18-75 years | 15-40 years | 65 thousands - no limit |
| ICICI Prudential -Guaranteed pension plan | 30 years to 60 years | As per the variant chosen | As per the variant chosen | 10 times of annual premium |
| ICICI Prudential Future protect | 1 year to 55 years | 18-60 years | 10-30 years | 4 lakh - no limit |
| Max Life Smart Wealth Plan | 1 year to 60 years | 18-70 years | As per the variant chosen | 160% x Annualised Premium x Premium Payment Term |
Key Benefits of Savings Plans
Financial Discipline
Savings plans help to create a financial discipline. By committing to a plan, individuals develop a habit of saving, which helps to achieve long-term financial goals.
Wealth Accumulation
Over time, the regular contributions towards savings plans and interest or returns generated by the plan help to create a good corpus of wealth. This accumulated wealth can be used to achieve various financial goals, such as buying a house, funding education of children, or planning for retirement.
Tax Benefits
All savings plans offer tax benefits under Section 80C, or Section 10(10D) of the Income Tax Act 1961.
Flexibility
Savings plans offer flexibility in terms of contribution amount, frequency, and tenure. Depending on your financial situation and goals, you can choose a plan that suits your needs.
Conclusion
A savings plan is more than just a financial product; it’s a tool that helps you secure your future. By choosing the right savings plan and staying committed you can build a solid financial foundation that ensures peace of mind for your future self.
In case you have any doubt regarding how to purchase a savings plan or the list of best savings plans available in the market, you can contact PolicyX.com. Our trusted insurance advisors work 24/7 to solve every possible query of yours free of cost.
Savings Plans and Schemes : FAQs
1. What are savings plans?
Savings plans are the type of life insurance plans that offer the dual benefit of savings and insurance.
2. What are the best government schemes available for savings?
Here is the list of best government schemes available for savings Public provident fund(PPF), Sukanya Smiridhi Yojana, Atal Pension Yojana.
3. Do savings plans offer tax benefits?
Yes, savings plans offer tax benefits under sections 80C & 10(10D) of the Income Tax Act 1961.
4. How much return can I expect on a savings plan?
Savings plans offer investment options in both the equity and debt markets. When you choose to invest in debt you will receive a fixed percentage of return. If you choose to invest in equity, your returns depend upon market performance.
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Written By: Varun Saxena
I am a passionate content writer with over three years of experience in the insurance domain. An avid learner, I always tries stays ahead of the industry's trends, ensuring my writing remains fresh and includes the latest insurance shifts. Through my work, I strive to engage with targeted insurance readers.
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