Savings Plan

Guaranteed returns with capital protection:

One of the most attractive features of a saving investment plan is the assurance of guaranteed returns along with capital protection. These plans are designed to provide a fixed return over a specific term, regardless of market fluctuations. This makes them ideal for conservative investors who prefer low-risk avenues for savings. Along with this, most savings plans ensure that your capital is safe, which means you can confidently use them to plan for essential life goals like education, marriage, or buying a house without worrying about losing your money.

Dual benefit of insurance and savings:

A major feature of a saving investment plan is that it offers both insurance protection and savings growth. While a portion of your premium provides life cover to secure your family’s financial future, the remaining is invested to accumulate wealth. This dual advantage ensures that your savings are protected, even in case of unforeseen events. It brings peace of mind knowing that your loved ones are covered while your investment continues to grow steadily, making it ideal for people seeking financial stability combined with protection.

Flexible premium payment options:

Most saving investment plans offer flexible premium payment modes such as monthly, quarterly, half-yearly, or annual. This allows investors to choose a frequency that best matches their income cycle and cash flow. Additionally, certain plans allow limited premium payment terms while providing coverage for longer durations. This flexibility makes it convenient for salaried individuals and self-employed professionals alike, enabling them to manage their finances efficiently without straining their budgets.

Tax benefits on premium and maturity:

A saving investment plan offers tax deductions under Section 80C of the Income Tax Act on premiums paid. Moreover, the maturity amount is tax-free under Section 10(10D), subject to certain conditions. This makes savings plans a tax-efficient way to build long-term wealth. It not only reduces your overall tax liability but also ensures that the maturity proceeds can be fully utilised for your planned goals like children’s education, marriage, or retirement needs, enhancing the plan’s overall value.

Helps achieve financial goals:

A savings plan enables you to plan and save systematically towards specific financial goals like buying a house, funding a child’s education, or planning a comfortable retirement. With disciplined savings and interest accrual over time, it ensures you have the required funds when needed. You can also customise the plan based on your investment horizon and financial priorities. Whether your goals are short-term or long-term, a savings plan aligns with your life journey and ensures that your aspirations are supported by a solid financial base.

Provides life coverage along with savings:

A savings plan often includes a life insurance component, which acts as a safety net for your loved ones in case of your untimely demise. This dual benefit means your family will not only receive the saved corpus but also an assured death benefit, offering financial protection when it is needed most. This is particularly useful for individuals with dependents, as it ensures that the family’s financial needs continue to be met even in your absence. Thus, a savings plan offers a unique combination of wealth creation and life cover.

Promotes financial discipline:

A savings plan encourages regular and consistent saving habits. Since most plans require periodic premium payments, they help inculcate the habit of disciplined saving, which is essential for long-term financial well-being. Over time, this disciplined approach contributes to building a significant corpus without causing a financial burden. This habit not only helps you prepare for planned expenses but also builds a buffer for emergencies, helping you remain financially independent and avoid unplanned borrowing.

Offers long-term wealth accumulation:

Through compounding and structured investment, a savings plan enables long-term wealth creation. When you invest consistently over the years, your savings grow steadily, and with interest or returns reinvested, the compounding effect increases your wealth significantly. This is particularly useful for planning future needs like retirement or children’s education. Even with conservative plans, the long-term benefit of consistent contributions results in a substantial amount, making it a reliable tool for wealth creation.

Assess your financial goals and investment horizon before selecting the best monthly saving scheme.

Compare returns, fees, and flexibility across different savings products.

Ensure the plan offers sufficient life cover if protection is a priority.

Check for tax benefits under Section 80C and Section 10(10D).

Review the credibility of the insurance provider or financial institution.

Understand the lock-in period and withdrawal options.

Evaluate whether the plan offers inflation-beating returns for the long term.

Financial security:

It ensures that your family remains financially protected in case of any unforeseen event, with a death benefit providing income support. 

Long-term savings:

These plans help you accumulate savings systematically over time, which can be used to meet major financial goals like retirement, children’s education, or home purchase. 

Tax benefits:

Most savings plans offer tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, thereby one can claim tax benefits. 

Disciplined saving:

Regular premium payments enforce saving discipline, ensuring you stay on track towards achieving long-term financial goals. 

Goal-specific planning:

The right plan aligns with your long-term financial objectives, such as retirement, children’s education, or property purchase. 

Flexible payouts:

Some plans offer periodic payouts, while others give lump sums at maturity. Picking the right plan ensures your liquidity needs are met when required. 

Tax efficiency:

Choosing a plan that offers maximum tax benefits ensures you not only grow your wealth but also save more through reduced tax liabilities.

Compare returns, tenure, and premium structure across various money saving plan options.

Look at the risk involved — guaranteed return plans vs market-linked.

Check tax benefits available under Section 80C and Section 10(10D).

Assess flexibility in terms of premium payment, withdrawals, and plan tenure.

Compare life cover amounts if the plan includes insurance.

Evaluate customer service and claim settlement ratio of the provider.

Review charges such as administrative and fund management fees.

Choose a plan that aligns with your long-term goals and financial profile.

Step 1 - Register your claim request

Register the claim request with the insurer through their website, e-mail or by calling their claim assistance contact number.

Contact No.: 1800-209-7272

Step 2 - Submit the required documents

Submit the necessary documents along with the duly filled claim form online. You can also submit it to the nearest branch of the insurer. 

Step 3 - Claim settlement

The insurer will assess the claim request. The claim initiator will receive the status via e-mail and SMS. The claim initiator can also check it online on the insurer’s website.

Photograph of the proposer

Age proof, such as PAN card, passport, voter’s ID, birth certificate.

Address proof, such as passport, driving licence, voter ID card, Aadhaar card, etc.

Identity proof such as Aadhaar card, passport, driving licence, etc.

Income proof such as form-16, salary slips, ITRs, etc.