Great higher education for your children and a worry-free retirement, are just some of the many things you dream of. To leave nothing to chance, you have been investing regularly. But will that be enough?
You need to ask yourself what if something went off the perfect script, you are penning for your family. For instance, if the worst were to happen to you, who would look after your family, in the same loving way you do?
For you, a fool-proof financial plan would be one which has provisions of providing for your family during such emergencies. Equally important will be devising ways to keep alive the dreams and aspirations of your family members.
Protection + growth with savings plans: The good news is that there is one financial product which combines protect and savings very well. We are referring to savings plans offered by life insurance companies. Like all life insurance plans, they provide life insurance coverage that helps your family during your untimely absence by helping meet regular expenses.
The savings plans are also designed in a way that the premiums help you save enough by the time plan matures, so that you have enough savings after the policy term to meet any needs.
Here, the benefits of unit linked insurance plans (ULIPs) are worth mentioning.
Savings boost with high growth: ULIPs provide the life insurance protection required by a family and typically help you save ample amounts by allowing you to invest in equities. Over the long period of the Ulip term, you typically get the high growth from equity investments. Also, as you stay invested for certain period during the term, you start periodically receiving loyalty additions, which is a percentage of assured. This further adds to your savings. But wait, there’s more.
Tax savings adding to savings: To top all the advantages of savings plans, you also get tax benefits. You can avail annual tax deduction of upto Rs 1.5 lakh for payment of premium. Plus, there’s also tax free maturity amount under Section 10(10D).
People’s dreams need not end with them. They can be nurtured in a way that they far outlive them. It’s wonderful to know that savings plans are around which allow your loved ones to live a full life and give the freedom to dream forever.
