Are you at the right age to choose savings plans?

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Are you at the right age to choose savings plans? (Image: Shutterstock)
Are you at the right age to choose savings plans? (Image: Shutterstock)

New Delhi : One of the financial benefits that we have been taught from the earliest days of our childhood is saving. The notion of setting aside a little today to enjoy a lot tomorrow is embedded into every goal we strive for in our lifetimes. It is keeping this in mind that savings plans are considered to be one of the best investment plans in the country.

While there are several savings plans available in the market, the best saving plan is the one that encourages disciplined savings while helping you earn guaranteed returns throughout the policy tenure.  Before you choose any savings plan, you should know what is an investment and consider several factors that will prove to be helpful in the long run. 

The best saving plans generally offer a wider entry age bracket while providing options to customize the investment tenure or policy term as per your needs. The entry age will help you determine your risk appetite, which further will help you personalize your savings.

You can find some of the best saving plans that help leverage the dual benefits of guaranteed benefit and life insurance coverage for your family. They will let you add numerous riders or add-ons to avail of more comprehensive policy benefits.

Plus, they also work as an excellent tax saving instrument. The premium amount you pay towards most plans with an insurance component is tax-deductible under Section 80C of the Income Tax Act. By consulting a tax advisor, you can maximize your savings with such savings routine.

Knowing about savings plans is not sufficient enough. You should purchase one too. If you wonder what the right age to opt for a savings plan is, you should follow the concept – the earlier, the better. Choosing a savings plan at an early stage is essential due to the following reasons:

1. Reach Your Goals

Having the best savings plan by your side will ensure that you can achieve your long-term and short-term financial goals as planned. If you want to purchase a house ten years down the line, you can do so with a comprehensive savings plan in place. 

2. Financial Security Cover

Several savings plans also ensure that your family will be financially stable in a circumstance where you are not around. Nothing will hamper their lifestyle and their way of living. The best savings plan will act as an emergency fund when in need and make sure that your loved ones need not live under any debt.

3. Child’s Education

If you start saving early, it will be easier for you in the long-run. After you plan to settle down and have a growing family, you will have to completely change your financial planning. You will have to look into the details of your child’s education. With the rising costs of higher education, a financial plan to fund it must be in place.

The best savings plan will ensure that your child does not have to compromise on his educational dreams. It will provide financial assistance when required in the future.

4. Retirement Fund

By choosing the best savings plan, you can also create a retirement fund. It can help you tide over any untoward incidents, be it health-wise or wealth wise in the future. You will be self-sufficient even after your retirement. Also, you can fulfill your dream of traveling the world. Moreover, if you do not want to work for long, you can bid goodbye to your workplace as per your choice. The best saving plan will let you plan your retirement at an early age.

While these were a few reasons that emphasize the importance of choosing a savings plan at an early age, given below are some of its benefits:

Financial Protection for Life

A life insurance cover ensures that your loved ones are taken care of in your absence. Thus, it acts as a financial safeguard against untimely demise. The best savings plan includes a mix of both, enhancing the protection with the possibility of regular payouts.

Long Term Wealth Accumulation

An essential benefit of choosing savings plans is that they inculcate financial discipline. Slowly and steadily, you can accumulate wealth with an efficient savings plan. The best savings plan will instill a habit of regular savings while managing your day to day expenses.

Guaranteed Payouts to Support Life Goals

The best savings plan facilitates investing money in different financial instruments. With guaranteed payouts from the best savings plan, you can invest in other financial instruments. The returns from these will help you support your life goals.

Choose the best savings plan for you right away, as it will provide you that extra cushion for a soft landing in times of financial trouble. Apart from that, it will support your life goals and help you fulfill your dreams. If you want to know about other life insurance products, start with a term insurance plan. To know what is term insurance plan in detail, read blogs online. Understand the policy wordings in detail and make your choice!