One of the first financial habits we've been taught since childhood is to save. The concept of setting aside today to enjoy tomorrow is embedded in all the goals we strive to achieve in our lives. Considering the fact that savings plans are considered by many to be one of the best investment plans in India.
Let's discuss in detail what savings plans are, how they can benefit an investor by saving for the future, and how to choose the right savings plan for your needs.
What is a savings plan?
Savings plans are basically a form of life insurance plan that gives people the ability to save, invest, and accumulate money to meet their future needs. They are designed to help policyholders develop a regular savings habit and enjoy high returns when they need them most.
Tailored savings plans with flexible features for each individual's specific needs can often prove to be among the best investment plans in India. Plus, savings plans provide insurance coverage that helps secure your family's financial future even when you're away.
Benefits of Savings Plans
Savings plans are the preferred investment option for those who appreciate the many savings and future benefits these plans provide. Here are some of those important benefits:
Coverage + Payments: Essentially a life insurance product, savings plans provide much-needed financial coverage to your loved ones in the event of premature death. In addition to the payments received from the savings plan, this additional guarantee allows you to protect your family financially in a more global way.
Promotes Financial Discipline: While it's one thing to be aware of the importance of financial savings, it's another to make saving a regular habit in our lives. This is where savings plans come in handy. One of the biggest benefits of investing in a savings plan is that it encourages you to build financial discipline in your life.
It offers flexibility: each person is different, as are their goals and priorities in life. Savings plans take into account these differences in savings goals and offer a variety of flexible features that can be customized to meet each individual's needs. They offer options in terms and payments as well as funds and other investment criteria. You can also opt for the investment of your choice when your appetite for risk and your need for capital is there.
Help save on taxes: Since savings plans are essentially life insurance plans, they offer tax advantages similar to those offered by other insurance plans. In particular, you can enjoy a deduction of up to Rs 1.5 lakh for your premium payments, under Section 80C of the Income Tax Act.
Helps You Achieve Your Goals Efficiently – Some savings plans are specifically designed to achieve the most important life goals for many individuals and families. For example, some savings plans are designed as investment plans to help you save for ambitious educational goals you have set for your children.
Choose the Right Savings Plan
As one of the best investment plans in India, savings plans come in a wide variety of products and variations across the board. To determine the savings plan that best meets your savings needs, it is important to first determine your investment goals and preferences. Define your short or long-term goals that will benefit from your savings plan investments. Moreover, it puts an end to an investment horizon and reduces your appetite for risk.
In addition to these, you should also pay attention to the details of the savings plan you want to choose. Consider important factors such as the unique features of a savings plan, the flexibility it offers, and additional benefits such as riders.
Conclusion
It's never too early to invest in a savings plan and start your journey toward achieving important life goals. To do this, you need a reliable and profitable savings plan like Invest Youngstar Udaan from HDFC Life Insurance. The ULIP plan offers a wide range of options among 7 different funds and 4 portfolio strategies. On top of that, you can enjoy features like Loyalty Add-ons, Wealth Boost, and more.
Contact us to know more.
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