What is a Savings Plan?
Savings plans are financial products designed to enable disciplined savings while delivering steady returns that help you achieve your financial goals. As they are primarily a life insurance product, these plans also ensure the financial security of your loved ones in case something happens to you.
Key features of a Savings Plan
- Maturity benefit: Savings plans come with an assured maturity benefit. This brings certainty to your savings. Some of the best savings plans also offer guaranteed additions & bonuses that enhance the maturity corpus, thus helping you to achieve your financial goals faster.
- Steady returns: Savings plans offer steady and safe returns. These returns are risk-free, which means you do not lose the money that is committed to you at the time of policy inception, provided you pay all premiums on time.
- Flexible premium payment: Savings plans allow you to pay the premium monthly, quarterly, half-yearly or annually, as per your convenience.
- Life cover: A savings plan comes with a life cover and provides financial security to your dear ones in case something unfortunate happens to you.
Benefits of having a Savings Plan
- Financial Protection: A savings plan provides financial protection to your dependents during the policy tenure. Even if something unforeseen happens to you, your family will be financially independent and will lead the worry-free life you have planned for them.
- Tax1 Savings: Savings plans offer tax1 benefits under Section 80C of the Income Tax Act. Some of the best savings plans also offer tax-free1 maturity proceeds subject to Section 10(10D) of the Act.
- Retirement Savings: Savings plans can be used to build a corpus for your retirement. By portioning a small amount at regular intervals, you can turn a monthly savings plan into a powerful retirement savings engine. Over 30 years, a savings plan can lead to a sizeable amount which can be used to generate a pension for your retirement.
Who should opt for a savings plan?
A savings plan is a versatile product that is relevant for people from different life stages, having different income levels and with different financial goals.
- Life Stages: Savings plans are beneficial everyone who hasn't crossed the retirement age. Whether you have just joined your first job, or have started a family or are some years away from retirement, a savings plan is ideal for most life stages of your life.
- Income levels: The premium for a savings plan depends on your financial goals. You do not have to earn a lot to afford a savings plan. The focus is not just on the amount you save, but more on how long you can follow through with your plan. However, do make sure that the sum assured for the life cover is enough to cover the present & future financial needs of your family.
- Financial Goals: Savings plan can be used to meet a variety of financial goals like purchasing a house, buying a car, your child's higher education and marriage, and your retirement. No matter what the financial goal, the best savings plans will always help you attain it.
How to compare different savings plans?
There are a lot of savings plans available today. To choose the best savings plan, one should consider the following factors:
- Size of life cover: The size of the life cover being offered is an important parameter. The more the life cover offered, the better the plan.
- Premium: The best savings plan for you will be the one that fulfils all your requirements and at the same time, also fits into your budget.
- Company Credentials: – Savings plans involve investing over a long period of time. Hence, it is important to ensure that the insurance company is stable with a sound financial position and would be able honour its commitment even several years after the original promise was made.
Why choose a savings plan from ICICI Prudential Life Insurance?
Savings plans from ICICI Prudential Life Insurance come with the following benefits:
- Savings with the comfort of guarantee
- Life cover to secure your loved ones
- Flexibility in premium payment
- Easy liquidity
- Cash benefits and additions
- 3 plan options to choose from: ICICI Pru Future Perfect, ICICI Pru Cash Advantage and ICICI Pru Savings Suraksha