The ongoing pandemic has ensured that people learned the hard way the importance of savings. There have reportedly been instances where people have had to break their fixed deposits and sell properties and gold to save their loved ones due to a financial crisis.
The problem most people make is that they usually prioritise expenditure over savings when it should be the other way round. Having savings is necessary for protecting your loved ones after the demise of a breadwinner, children's education, post-retirement planning, etc.
Are you interested in knowing about a saving tool that compensates for economic losses without the burden of paying them back? This mechanism ensures that your family's standard of living is not affected even when the breadwinner is absent.
Before we talk about the saving tool, let us briefly discuss “why savings are necessary?”
Here's why savings are necessary:
- For building wealth
- Securing financial future
- Preparing for life’s uncertainties
- Opportunity to enjoy a quality life
Life Insurance – A Saving Tool
Various life insurance products are considered as a great saving tools. They not only guarantee life cover throughout the policy term, but also offer returns that can help complete financial goals or fight financial uncertainties.
The benefits of life insurance are numerous, and you can choose as per your risk appetite. However, let us quickly run through a few top life insurance saving tools:
Savings insurance plans are goal-oriented savings plans that include not only death benefit (paid in the event of death of the life insured) but also maturity benefit that is paid if the life insured survives till end of the policy term. Therefore, the premium under these plans has two elements: returns + life cover.
Traditional insurance plans have two types of participating and non-participating policies. Participating policies are where a majority amount of returns are guaranteed and some part is based on the bonuses declared by the company (here the policyholder shares the profits of the insurance company). Whereas, in a non-participating plan the benefits are completely guaranteed.
Suggested Plan: Future Generali New Assure Plus
A guaranteed plan provides assured benefit to the policyholders. This traditional insurance plan provides life cover, together with guaranteed payouts, if any and maturity benefits, if any. Guaranteed plans, thus, act as another source of income by providing assured payout(s) at regular intervals of time.
Suggested Plan: Future Generali Money Back Super Plan
Every parent has a dream about their child's future. As the child turns into an adolescent, those dreams become a priority. There are many factors to consider while planning for a child's education. These could be the target date of a savings plan’s maturity depending on the child's age, analyzing the current cost of education, determining the target amount, and estimating the returns.
Payouts received are used for a child's education. The Future Generali Assured Education Plan is an excellent way to save money for your child's education. Here, the child’s education is secured even in case of an unfortunate event in the life of the assured.
Suggested Plan: Future Generali Assured Education Plan
One of the common questions posed by anyone who is starting to look into savings is: “What is the right time to invest in a retirement plan?”
The response to this question is quite simple: at the earliest, as soon as you start earning.
Some of the benefits that retirement plans offer are:
- Guaranteed vesting benefit
- Flexible premium paying term
- Worry-free retirement
- Life coverage
To enjoy tension free retirement, you can invest in the Future Generali Pension Guarantee Plan as it offers the following benefits:
- Uses the proceeds to buy a Single Premium Deferred Pension Plan
- Allows maturity proceeds, as per the Income Tax Act, to be converted into a lump sum. It further uses the remaining amount to buy an immediate annuity from Future Generali India Life Insurance.
- Extends the policy’s term (provided the policyholder is below 55 years) to get the entitlement of the maturity proceeds afterwards.
From the points discussed above, it is clear why it is essential to save for future milestones. Without savings, unexpected expenses become burdens. Savings make us financially independent and provide for these milestones without worry.
Additionally, life insurance products provide a safety net for the family and ensure that it maintains the same standard of living even without the breadwinner.
So, do not wait!
There are a variety of life insurance products offered by Future Generali Life Insurance. To know which plan fits best with your needs, connect with our financial advisor by clicking here!