In essence, a well-thought-out savings plan offers triple benefits - wealth creation, life protection and tax-efficient returns. Under Section 80C of the Income Tax Act, 1961, premiums paid towards life insurance–linked savings plans are eligible for deductions up to Rs. 1.5 lakh annually. Additionally, under Section 10(10D), the maturity proceeds (including bonuses or guaranteed additions) are tax-free, provided certain conditions are met. On one hand, while your contributions compound to build the corpus as desired, on the other hand, you have the opportunity to save more with tax benefits on your premiums and payouts. Tax laws are subject to amendments, consult your tax advisor before making any purchase decisions.

Let’s understand the effect of discontinuance of premiums with an example. Suppose Sooraj, a policyholder, decides to stop paying premiums before his online savings plan completes the minimum premium payment term. In such a scenario, Sooraj’s policy may lapse. However, most insurers do offer a grace period (usually 15–30 days) to make pending payments. If Sooraj pays the premium within the grace period, the policy is then revived with its original benefits within a specific time frame by clearing all dues and submitting a health declaration. In case Sooraj fails to pay the premiums within this period, the policy may either become paid-up (with reduced benefits) or lapse entirely. Paid-up policies shall continue till maturity but with a lower sum assured. To avoid losing coverage or returns, Sooraj can use features like auto-debit. Regular payments ensure that the savings policy’s life cover, maturity value, and bonuses remain intact, helping policyholders like Sooraj and you stay on course towards your financial goals, with uninterrupted coverage and growth benefits.

Loan availability against your savings plan is an excellent benefit under the policy so that when hit by emergencies, you have a quick solution to rely on without having to exhaust your other sources. A loan against your savings policy acts like a 2-in-1 advantage when you are in utmost need of funds. It ensures liquidity for your immediate requirements while keeping your long-term investments aligned with your future milestones. Without interrupting your savings habit or losing the life protection enabled within the plan, many savings plans like endowment or money- back policies offer you loans for urgent needs. These loans are calculated against the surrender value of your policies, usually ranging between 60% to 90% of the surrender value, depending on the insurer’s terms, provided the plan has built up sufficient value (typically after 2–3 years). Any outstanding loan amount and interest thereof will be deducted from the maturity benefit if not repaid already.

There is complete flexibility inbuilt in the savings plan to pick a policy tenure of your preference that aligns with your life’s events. It is ideally recommended that you choose a term which suits your risk profile, financial commitments, and life stage effortlessly, without straining your budget and current finances. You must aim to remain invested for as long as you can so that your investment can compound exponentially over time. Moreover, longer tenures even out any market volatility (depending on the plan type) that may arise in the short term. Shorter periods are meant for immediate goals (for instance, your milestones in the next 5 years) such as buying a vehicle or funding higher studies. The maximum tenure can even go up to 40 years, making it ideal for long-term goals such as children’s education, dream home purchase, marriage, or retirement planning, which may also demand a higher corpus.

Inflation has a significant impact on your savings over time. A Rs. 20 lakh sum as of today doesn’t hold the same value 10 years or 15 years later when you need it for your retirement. Hence it is extremely important to factor in inflation, interest rates and market swings while selecting your sum assured, premium and other benefits from the plan. Not planning for adequate returns can squeeze your financial situation in the future when you need money for bigger expenses like your child’s wedding, home buying etc. Savings insurance plans - especially ULIPs and bonus-linked policies - help counter inflation by offering market-linked or incremental growth through bonuses and fund performance. You must consider checking for regular additions, loyalty bonuses, or reversionary benefits while choosing from the range of savings plans offered by the insurer to maximize returns. To be in an advantageous situation after the completion of the policy term i.e. in order to have significant returns at maturity, you need to definitely account for inflation in your policy calculations right before purchase.

Unlike FDs, savings plans are not your ‘set-once-then-forget’ kind of policies. It is important that you monitor your savings and investments regularly from time to time to ensure that their performance is aligned with your goals. You may need to rebalance your savings plan portfolio in order to cater to your evolving needs and responsibilities over time. You can consider reviewing your savings plan annually or during major life events like marriage, job change, or child’s birth. This way, you can keep monitoring market fluctuations, inflation trends, fund performance and wealth accumulation periodically and help maintain the savings policies on track. For instance, in the case of ULIPs, revisiting the dashboard also helps you shuffle between equity and debt funds based on market movements. Like how a medical check-up annually is meant to keep your health robust, yearly reviews keep your savings aligned with their desired growth tracks.

Planning for the future early on is of paramount significance. Financial planning helps keep you and your dear ones secured throughout, and your dreams completely safe from life’s unpredictable events like breadwinner’s death, life-threatening accidents, and sudden medical emergencies. To safeguard your financial future, start by firstly understanding what it is that you want to achieve in the short-term, medium-term and the long-term and how much funds you need to achieve these milestones. When you start early, your age, health condition, and financial status, are in a better state, empowering you to make bolder financial decisions for growth and future stability. When you start late, your financial obligations may go up significantly limiting the number of choices you can have when it comes to the savings plan options. Starting at a young age = Affordable premiums, higher sum assured, extended protection, coverage during prime earning years, and financial freedom at all times. Once you are clear with your goals, start working backwards by mapping each milestone with an ideal savings plan. Not just that, diversify your risk by allocating funds accordingly using a mix of savings insurance plans, mutual funds, and deposits. You do not necessarily have to park aside a big investment amount to begin with. Even a small amount (like Rs. 2,000, Rs. 5,000 or Rs. 10,000) according to your financial capacity, with the power of compounding, can grow to become a huge sum over time. For example, investing Rs. 5,000 a month in a savings plan at age 25 can potentially build a corpus exceeding Rs. 30 lakh by age 50 (depending on returns). Early starters not only accumulate more wealth but also enjoy financial independence sooner.

Your savings goals are unique to you. However, generally speaking, most individuals - depending on their age, life stage, family commitments and financial obligations - broadly have the following 3 savings goals as focus areas in their lives:

• Emergency fund / Contingency reserve: Cover 6 to 12 months of expenses for unforeseen events.
• Wealth accumulation / Corpus creation: Use savings insurance plans or mutual funds to secure your future in the long term.
• Retirement fund / Secondary income planning: Build a consistent corpus to maintain your lifestyle after your employment ends.

A good savings plan must work harder behind the scenes to help you achieve all these goals systematically, so that you are not financially stranded when in need.

Savings plans can accommodate individuals of all age groups and have wide eligibility conditions giving flexibility to several categories of policyholders who can benefit from this versatile financial solution. Depending on the plan type you pick and the insurance company you partner with, individuals aged 18 to 65 years, from all income backgrounds - regardless of whether you are a salaried employee, self-employed professional, or entrepreneur - can buy an online savings plan for their life goals. Moreover, even young parents can purchase plans for their children’s education or future goals. Savings plans are for everyone looking for financial protection with disciplined wealth accumulation.

The answer to this question depends on your specific needs and goals. Both short-term savings plans and long-term savings plans are designed to deliver tailored outcomes for your desired milestones. Short-term savings plans (5–10 years) are best suited for goals like buying a car, taking a vacation, or funding a short-term education course. Long-term savings plans (15+ years), on the other hand, help you build wealth for major milestones like your child’s education, marriage, or retirement. You must ideally consider having a balanced portfolio with a mix of both terms for serving your liquidity needs and corpus creation target. This way, you are ready for both, your immediate needs that demand financial flexibility and your future goals which demand financial readiness.

The end of tenure for a savings plan means a rewarding and satisfying moment for the policyholder in exchange for the years of patience and premium contributions made towards the policy. At the end of your plan’s tenure, you receive the maturity benefit, which includes the sum assured plus bonuses or guaranteed additions, depending on your policy type. You have the option to either take the payout amount as a lump sum or regular income, if your plan allows. Some plans also provide options to extend coverage or reinvest the proceeds for continued growth.

Most savings insurance plans allow partial withdrawals after completing a lock-in period if any - usually 2 to 5 years - depending on the plan type. In ULIPs, withdrawals are permitted after five years, offering liquidity during emergencies. However, it’s important to note that early withdrawal reduces the maturity benefit. It’s always advisable to stay committed for the long term and withdraw only for extremely urgent and genuine needs.

If guaranteed returns are a part of your savings plan, they are always mentioned upfront in your policy document. Certain plans, such as Guaranteed Income Plans or Endowment Policies, offer guaranteed maturity benefits. Guaranteed benefits are extremely useful in case of conservative investors who prefer security over risk and are appreciative of stable returns whatsoever.

Essentially, your Maturity Value = Sum Assured + Bonuses (if any) + Guaranteed Additions – Applicable Charges. The longer your policy term, the higher your compounding and final payout. The maturity amount in a savings plan is determined by adding your total premiums paid, guaranteed additions, bonuses, and loyalty benefits, depending on the policy type. In ULIPs, the maturity value depends on the market-linked NAVs of the chosen funds. In guaranteed or endowment plans, the insurer declares bonuses annually that accumulate over time.

Yes, Non-Resident Indians (NRIs) can absolutely invest in most savings insurance plans offered by Indian insurance companies like Ageas Federal Life Insurance subject to insurer and regulatory body guidelines. These plans are designed not just for residents but also for Indians living abroad who wish to grow wealth and maintain their financial roots in India. Premiums in such cases can be paid through NRE / NRO accounts, and the benefits are repatriable as per RBI norms. In some cases, payments can also be made through foreign remittance channels compliant with RBI and FEMA regulations. If you are someone with a desire to have financial ties with your home country, you can consider buying savings plans either during your visit to India or even remotely through seamless digital onboarding, for stable returns, rupee-based investment safety, and tax benefits. Speak to the insurer to understand the documentation guidelines, and specific norms put forth by concerned authorities to invest in attractive instruments while remaining compliant with Indian laws.

Yes, you can have multiple savings insurance plans, each tailored to your goal and life stage such as wealth creation, education fund, retirement planning, wedding, child’s future etc. This way, you can follow a targeted approach towards each milestone, with every savings policy supporting your unique requirement and securing your family by diversifying coverage and spreading the protection across several plans. This also ensures that each of your savings schemes grows individually and collectively to contribute to your specific needs during different key events and caters with payouts that are sufficient and substantial enough to support your evolving goals over time. Moreover, you can structure and plan your investments in such a way that you can categorize your benefits for achievement of your certain short-term goals, medium- term goals and long-term goals respectively. Having multiple savings insurance plans also helps maintain liquidity during challenging times, balancing risk and enhancing returns. For instance, you might hold a ULIP for growth, a Guaranteed Savings Plan for stability, and a Money-Back Policy for periodic payouts. Together, they create a 360° financial safety net, making certain every future milestone is well-covered.

This sales literature gives only the salient features of the Ageas Federal Life Insurance Super Cash Supreme Plan. It uses easy-to-understand language to explain the features. Your plan is governed only by the full legal terms, conditions and exclusions as contained in the policy document. Please read the policy document for more details. Ageas Federal Life Insurance Super Cash Supreme Plan is a Non-linked, Participating, Individual Life Insurance Savings Plan (UIN: 135N121V01). The product is underwritten by Ageas Federal Life Insurance Company Limited (IRDAI Regn. No 135; Corporate Identity Number (CIN) - U66010MH2007PLC167164) having its corporate and registered office at: Ageas Federal Life Insurance Company Limited, 22nd Floor, A Wing, Marathon Futurex, N. M. Joshi Marg, Lower Parel – East, Mumbai – 400013. Website: www.ageasfederal.com. Toll-Free: 1800 209 0502. Trade Logo displayed above belongs to The Federal Bank Limited and Ageas International Insurance N. V. and used by Ageas Federal Life Insurance Company Limited under license from respective partners. Ageas Federal Life Insurance Company Ltd. does not assume responsibility on tax implication. ARN: 20312/SCSP/ENG/Print-PB/Dec24