Saving plans are perfect for the ones who prefer to deposit their saving amount in a particular scheme, rather than having the freedom of moving around with it. With saving plans, you can lock yourself into a certain period and earn a little more interest than your regular savings account.
Talking about planning, life without a plan is chaos, and that applies to your finances as well. All aspects of your life should be planned out for the highest level of efficiency. This certainly includes all the money issues, such as where it’s going and how much is set aside for what.
With that said, if you’re looking to gain the most out of your savings plan, you should first know about the essential factors that you must consider before choosing one. Here’s a complete list of factors that you should keep in mind:
Table of Contents
1. Liquidity
A savings plan should offer proper liquidity to facilitate your financial needs. Make sure that your preferred savings plan allows you to withdraw your funds in times of emergency. Before you choose a plan, make sure you consider your financial requirements and determine whether the liquidity offered by the plan fits the bill for you or not.
2. Tax Deductions
While making investments in a savings scheme, you should also pay close attention to the tax benefits offered by your plan. A lot of investment instruments like life insurance provide tax benefits, which means investing in such schemes will not only help reduce your tax burden but also protect you from any eventualities that may occur in your life.
3. Diversity
When choosing a preferred savings plan, make sure that it isn’t limited to a single investment product. It’s necessary to diversify your investments across multiple instruments to mitigate the risk associated with them. You can check out the available investment options in a particular savings plan that help you fulfill your purpose and allow you to make diversified investments.
4. Life Goals
Before you zero in any specific savings policy, you should certainly assess both your short- and long-term financial goals. This not only helps you align your investments accordingly but also assists you in choosing the right plan as per your needs. Although it may feel a bit tedious, you should spend some time doing it to gain greater benefits from your savings plan.
5. Risk and Reward
While choosing a savings plan, you also need to make sure that you maintain a perfect balance of risk and reward in your investments. It’s better to assess your risk appetite before choosing any investment channel to make an informed decision.
6. Plan’s Performance
It’s suggested to review your portfolio once every year to make sure that it remains profitable. The process also allows you to make required changes in your investments and keep track of your returns. By reviewing your portfolio and plan’s performance regularly, you can ensure maximum returns from your choice of investments.
7. Terms and Conditions
While buying a savings plan, make sure you ask any questions that arise in your mind. As there are certain terms and conditions involved with savings plans, they’re a bit complex. Therefore, you should consider asking the insurer about all the offerings, limitations, and doubts clearly and concisely. Make sure you zero-in the policy only when you’ve got answers to all your questions.
Top Savings Plans in India That Adhere to These Factors
1. Canara HSBC Oriental Bank Of Commerce – Guaranteed Income4Life Plan
The Canara HSBC Oriental Bank Of Commerce’s Guaranteed Income4Life Plan is a highly comprehensive savings scheme that helps you accumulate monetary resources for a financially secure future. The plan offers several customization features that allow you to personalize your investments based on your goals and aspirations in life. Additionally, with flexible premium payment terms and pay-out options, the plan offers you an amazing convenience of investing.
2. Max Life Monthly Income Advantage Plan
Max Life Monthly Income Advantage Plan is an individual non-linked savings plan that helps your family sustain proper living standards in the event of your untimely death. Moreover, it also allows you to make savings to fulfill your life’s goals and aspirations. With this plan, you can enjoy recurring monthly income for up to thirty years after completing the premium payment terms. It even offers additional benefits like a terminal bonus on maturity that make this plan even more promising.
3. Edelweiss Tokio Life Active Income Plan
The Active Income Plan offered by Edelweiss Tokio is another savings plan that provides you recurring income pay-out that helps you live life on your terms. There are two different variations of the policy available as per your requirements and financial preferences. Moreover, you can also enjoy tax benefits with the help of this policy as per the latest norms of section 80C of the Income Tax Act of India.
4. IndiaFirst Life Cash Back Plan
The Cash Back savings plan offered by IndiaFirst Life insurance is an ideal investment instrument to save money for your future goals. The plan ensures guaranteed pay-outs at specified intervals of time that allow you to enjoy great convenience in terms of savings. It’s ideal for long-term investments as the plan offers better returns in the long run and also provides you tax benefits for maximum savings. Therefore, make sure you consider checking out this plan right away if you want to build wealth to fulfill your future goals and aspirations in life.
Final Words
Saving plans are great. You can save some serious money and you have the option to use it anytime in the future. Moreover, now when you know about the essential factors that you need to keep in mind while choosing a savings scheme, you can easily make smart financial moves and supercharge your investments.
