It is not possible to forecast the future. One does not know what will happen in the next minute. Today everyone’s life is at stake, looking at the rate of accidents and the spread of diseases. It is important that one should plan and save for the future. With rise in incomes and simultaneous rise in expenses, a small sum is left for savings. But it is correctly said that first one should save and then spend the rest of their income.
Variety of saving plans
Today the market is flooded with an array of saving plans. People save their money where there is less risk and high returns. Mutual funds, fixed deposits, insurance, investment in bonds, gold and shares are some mediums of savings. Financial institutions offer a variety of plans and policies which cater to all needs of individuals. Modern financial institutions have opened up many clever avenues of investments that horde sums of money for a specified period of time earn a decent interest and offer peace of mind to the investors. Saving is considered as a part of Indian tradition known as responsible and cultural living.
Today the market is flooded with an array of saving plans. People save their money where there is less risk and high returns. Mutual funds, fixed deposits, insurance, investment in bonds, gold and shares are some mediums of savings. Financial institutions offer a variety of plans and policies which cater to all needs of individuals. Modern financial institutions have opened up many clever avenues of investments that horde sums of money for a specified period of time earn a decent interest and offer peace of mind to the investors. Saving is considered as a part of Indian tradition known as responsible and cultural living.
Insurance as a saving option
Insurance investment plans offer financial products to individuals for regular and disciplined investment in different policies for achieving their long term financial goals. Saving, together with a life cover is what insurance offers. A life insurance plan not only creates wealth for future but at the same time also give life coverage. Insurance is also known as an ideal tool for retirement preparation. The policy holders alsoget yearly bonus/dividends. A majority of insurance plans also offer tax benefits.
Insurance investment plans offer financial products to individuals for regular and disciplined investment in different policies for achieving their long term financial goals. Saving, together with a life cover is what insurance offers. A life insurance plan not only creates wealth for future but at the same time also give life coverage. Insurance is also known as an ideal tool for retirement preparation. The policy holders alsoget yearly bonus/dividends. A majority of insurance plans also offer tax benefits.
Types of insurance saving plans
Insurance companies have an array of insurance saving plans that cover the needs of varied investors. The types of insurance saving plans are as follows:
Insurance companies have an array of insurance saving plans that cover the needs of varied investors. The types of insurance saving plans are as follows:
- Endowment plans: These plans tend to pay out the sum assured under both scenarios i.e. death or survival. The companies invest the premiums paid by policyholders in the debt or equities market. So apart from covering the life of the insured, the policyholder also saves regularly for a specific period of time and gets the lump sum amount at the end of the maturity period, if he survives.
- Unit Linked Insurance Plans (ULIPs): They are a variant of endowment plans. The sum assured is paid at the time of death/maturity. As the name suggests, these investments are linked to market. Investments are either allocated in debt or stock market, depending on the choice of the policyholder. They are a combination of investment and insurance.
- Money back policy: Under this policy, a portion of the sum assured is paid at regular intervals. At the end of the policy term, if the policyholder survives he gets the balance sum assured. In case of his death, his beneficiary gets the full sum assured.
LIC’s saving plans
LIC is one of the most trusted brands in India for life insurance. They offer saving plans to meet the different needs of individuals. LIC saving plans are coupled with life insurance cover. Following is the list of saving plans from LIC:
- Single Premium Endowment Plan
- New Endowment Plan
- New Jeevan Anand
- Jeevan Rakshak
- Jeevan Lakshya
- Limited Premium Endowment Plan
- New Endowment Plus
Save tax by investing in insurance
Another great advantage of investing in insurance plans is that one can save the tax payable by availing the deductions under certain sections of the Income Tax Act, 1961. With the increase in the income of an individual the amount of tax payable also increases. Therefore, tax planning is very useful in saving your hard-earned money. LIC provides an array of policies to suit the needs of the customer, enabling you to save your well-earned money and reap maximum benefits.
Another great advantage of investing in insurance plans is that one can save the tax payable by availing the deductions under certain sections of the Income Tax Act, 1961. With the increase in the income of an individual the amount of tax payable also increases. Therefore, tax planning is very useful in saving your hard-earned money. LIC provides an array of policies to suit the needs of the customer, enabling you to save your well-earned money and reap maximum benefits.
Authorized and qualified LIC agent in Delhi will be able to guide as to the best insurance investment plan that suit the need of the customer. If one has no idea about investments, then they are the best people to take guidance from.
