“Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.” ~ Johann Wolfgang von Goethe
Is it brutal to quote this statement by a wise person, or did you also nod and connect with this meaningful quote?
Savings is an essential and fundamental activity that everyone must follow to lead a fruitful and meaningful life. Yes, we agree to the notion of – you only live once; but does it also shout loud that let your money be wasted for a catastrophic tomorrow?
In childhood, we had coins and notes that were less numerical. And, we kept all the saved money aside, thinking of using it to buy something for ourselves. But, as we grew, the meaning and denomination of the money increased. Today, we save to enjoy a better tomorrow, fulfill future objectives, deal with emergencies, and many more, including a more significant sum of money.
And today, life insurance has stepped into our lives, making it more accessible and convenient to save, invest, and ensure that until we reach our death, days are safe from economic crunches. There are multiple life insurance plans that one can purchase in India, and each comes with its use case.
This blog shall help you understand,
- What is life insurance?
- What is the nature of an assured savings plan?
- Is ABSLI Assured Savings Plan a seal-the-deal offer?
What is Life Insurance?
Life insurance is a massive and inclusive tree that bears different types of life insurance that can cater to the needs of people of varying gender, economic status, long-term or short-term objectives, conditions, requirements, and many more elements.
Life insurance can be defined as an exchange for the premium paid by the life insured/policyholder to the insurance company/insurer to keep the selected plan alive and enjoy the perks. The life insured will have a beneficiary/nominee who shall receive the income benefit or death benefit if the life insured meets with untimely death while the term plan is active.
According to the agreement, in the event of the policyholder’s death or if the policy matures, the insurance company will pay the person or his family a lump sum payment after a specific period. Various life insurance policies are available to meet policy customers’ particular needs and requirements.
Life insurance is a wise investment. Anyone who has financial dependents will find the advantages of purchasing life insurance appealing. For instance, if the life insured meets with unexpected death while the policy is active, the family shall receive the death benefit to help them have a financial backup in the sudden economic vacuum.
There are multiple kinds of life insurances available in India, and they are as follows:
- Term Insurance Plan
- Health Insurance Plan
- Savings Plan
- Endowment Plan
- Unit-Linked Insurance Plan
- Child Insurance Plan
- Retirement Plan
- Critical Illness plan
- Cancer Insurance Plan
What is an Assured Savings Insurance Plan?
An assured savings plan can be quoted as ‘an assured asset that an individual will receive after a certain period’.
Let us suppose that Manish bought an ABSLI Assured Savings Plan. Now, it is a mixture of life insurance and savings plans that will help him protect his family members from financial catastrophe in the event of an untimely incident. While also assisting you in accumulating lump sum benefits to fulfill certain future objectives.
An assured savings plan can be considered an essential asset as it helps you walk through two beneficial roads – savings and insurance. Just like a unit-linked insurance plan (ULIP), you can enjoy the best of both worlds by paying your premiums periodically. Based on your requirement (long-term or short-term), some plans give you the leverage to manipulate or extend your insurance duration.
When you invest in a guaranteed savings plan, you may be able to earn benefits when the plan matures. The benefits will be the same as the sum assured calculated prior to the scheduled commencement date. Apart from the assured maturity benefit, the life insured is guaranteed other perks like death, joint life protection, riders, loyalty additions, and many more.
Understanding the Work Frame and Benefits of Assured Savings Plan
You might have 2-3 sources of income, but is it of any use if you are not using the money aptly for the long run?
No right, this is where a savings plan comes into play where you can utilize it to have a more extensive financial cushion to tackle almost all the future objectives. But this factor depends upon the coverage one opts for. You can opt for minimal coverage and expect it to give you ten folds after a couple of years.
Some of the perks of having a savings plan are as follows:
Weave a considerable corpus eliminating the possible chance of getting into debt
The purpose of this plan is to provide you with an additional source of money towards the end of the plan that will help you sort your priorities and invest in the venture accordingly as per your requirements.
Buying and insurance means saving taxes.
The premiums you pay each year for a life insurance plan can be claimed as a tax-deduction perk according to Section 80C of the Income Tax Act (1961). As per this tax law, an individual is eligible to avail of a perk of Rs. 1.5 lakh. For instance, your taxable income is Rs. 7 lakh. Moreover, you have chosen to follow the old tax regime, where you will be obligated to pay tax at a rate of 20%. Now, you have spent over 2 lakhs as your insurance premium on this number. You will receive 1.5 lakhs with this tax benefit, which means 3/4th of the payment slides back to you.
It supplements your primary source of income.
The extra money provided by such a beneficial plan is the most prevalent way it benefits you. Some extra cash in your kitty will not prick; in fact, you can use this extra money to fulfill the emergencies or needs that arise midway. Certain income/savings plans give users the leverage to shorten or extend the plan according to their needs.
ABSLI Assured Savings Plan
Now, we will ask you certain things, and the answer for all of them falls for a yes from your end. Then, this might be a good deal for your pocket and family.
- Want a plan that assures you with a definite death benefit or maturity benefit?
- Need to escalate your plan with the loyalty additions that will benefit your maturity each year?
- Want to add your spouse to the plan?
- Want to pay the premiums at your convenience?
Don’t look away because you are at the right junction as we have brought you the qualified plan that suits your taste, and that is the Assured Savings Plan by Aditya Birla Sun Life Insurance.
Some of the salient features of the ABSLI Assured Savings Plan are as follows:
Loyalty Additions: They are premiums added to your existing plan that will eventually increase your maturity fund if all due premiums have been paid.
Increase your maturity corpus: Want to avail the outcome in a bigger and better manner than with this plan? You can have the freedom to increase your maturity benefit with greater premium-paying policies.
Financial security for your family: With this plan, you are empowered because you have purchased complete risk coverage. It will safeguard your family with the death benefit in your absence.
Flexibility in premium payment: Here, the life insured will have the liberty to choose from various Premium Payment Terms, Policy Terms, and Sum Assured Multiples to meet your needs.
Riders: Always go for a plan that comes with riders as they are extra perks that will add more value to your plan. However, these additional benefits come with affordable costs.
Having a helping hand that will wisely help curate a decent corpus for you, your family, and your future objectives is not a bad deal. Everyone might have an insurance plan that helps them save and invest rightfully, but the real essence is who the insurance company is, the features and perks of the chosen plan, and the claim history.