To have a seamless life nowadays takes a lot of planning. We need to be prepared in advance to face future challenges. Constantly rising inflation rates have made it all the more challenging, especially for those who have just started earning. Often, beginners are clueless and find it difficult to manage their earnings, invest, and save an ideal amount of money for future requirements. This fear and confusion often lead to beginners either delaying the process of saving or contemplating the same. Let us tell all beginners that saving money and investing in the best savings plan is not as hard as they think it is.
To help the newbies, we have prepared a conclusive and well-structured guide on saving money and finding the best savings plan for themselves and their loved ones.
First, let us start by understanding what a best savings plan is.
What is a Savings Plan in India?
A savings plan is an insurance plan that provides financial security and provides a lump sum amount of life cover in case of an unforeseen mishap, such as the unfortunate and untimely demise of the policyholder. In such unforeseen cases, the policyholder’s family will be financially protected and will be able to continue with their lives seamlessly, even if the policyholder is not around to provide for them.
After you have invested in a savings plan, the returns that you get are steady and do not involve any risk. This makes it an ideal plan for beginners to invest in.
Key Features of Best Savings Plan in India
- Financial Protection
One of the key reasons for beginners to invest in the best savings plan in India is financial security. In case of an unfortunate mishap, a savings plan ensures that the policyholder’s family is well protected and do not have any financial constraints.
- Lumpsum Amount of Death Benefits
In case of an untimely demise of the policyholder, a savings plan will provide a lump sum amount of death benefits to the family. This will ensure that they can meet their financial requirements in the coming years and can achieve the dreams and goals that they have planned.
- Tax Benefits
The best savings plan also offer tax benefits to the policyholder. The policyholder can claim up to Rs. 10,000 under Section 80GC of the Income Tax Act, 1961 in one financial year. However, tax laws are subject to change from time to time.
- Does Not Involve Any Risk
Savings plans do not involve any risk as they do not involve an investment plans component. This makes it one of the best insurance plans for beginners to invest in. Moreover, knowing that this plan is safe and secure, beginners do not have to think twice before investing in this plan.
- Provides Returns at Regular Intervals
Savings plans offer consistent returns at regular intervals. This ensures that the policyholder’s family has regular incomes to meet their financial requirements in case of an unforeseen mishap.
A savings plan is one of the most preferred insurance plans for all beginners who have just started earning. For starters, beginners should go for an insurance providing company that is trusted by people and has a high claim settlement ratio.
