HomePersonal FinanceLife InsuranceSignificant Features of an Assured Savings Plan

Significant Features of an Assured Savings Plan

An assured savings plan is a type of life insurance policy that allows you to build wealth and secure your family’s financial future. It also helps you and your family to meet your short-term and long-term financial goals. With an assured savings plan, you can save for your future purposes in an organised and disciplined manner.

Since an assured savings plan is primarily an insurance product, you enjoy several benefits like death benefits, tax savings, assured returns, guaranteed loyalty additions, and many more. With so many benefits, you must purchase a savings plan at an early age.

If you are a first-time insurance buyer or just starting your savings journey, you may be sceptical about buying an assured savings plan. However, knowing the features of these plans will help you make an informed decision. So, in this post, we discuss the significant features of the assured savings plan.

Assured saving Plan Features

Significant Features of an Assured Savings Plan

Affordable premium

The premium for an assured savings plan is much more affordable than other life insurance policies. This is because the savings plan does not invest in money market instruments, and there is minimal risk. Thus, no matter if you have just started earning or are nearing retirement, you can easily purchase this policy, as the premium will not burn a deep hole in your pocket.

When you purchase a savings plan, make sure that you compare the premiums of different plans and choose the one that is affordable and suits your budget.

Flexibility to add riders

Another significant feature of an assured savings plan is that the insurers give you the flexibility to customise the policy as per your specific requirement by adding riders or add-ons. Riders are additional coverage options that you can buy by paying an additional premium to cover specific risks that are not covered under the standard policy.

Some of the best savings plans, like Kotak assured savings plan, allow you to purchase riders like accidental death benefit rider, permanent disability benefit rider, guardian benefit rider, critical illness benefit rider, etc.

Tax benefits

As mentioned earlier, a savings plan is primarily an insurance policy. So, like other forms of insurance, the premium you pay for this policy is eligible for tax benefit. You can get a deduction of up to Rs. 1.5 lakhs under Section 80C of the Indian Income Tax Act. Thus, apart from securing your family, an assured savings plan allows you to reduce your annual tax liability.

In the event of your demise during the policy period, the amount your family may receive is entirely exempt from tax.

Guaranteed additions

Perhaps the most important feature of an assured saving plan is that it gives you guaranteed returns through assured annual additions and loyalty additions. All these amounts add up to the maturity payout, payable at maturity or your demise, whichever occurs earlier.

Limited premium payment

Some assured savings plan allows you to choose the premium payment term as per your needs. This means your premium payment term can be shorter than the actual policy tenure.

For example, let us assume that you purchase an assured savings plan with a tenure of 20 years. You can either pay the premium for the entire period, or you can pay the premium only for ten years or less and enjoy the coverage and other policy benefits for the entire term, i.e., 20 years.

This is an excellent feature for people who do not want to carry the burden of regular premium payments for a long time.

Final Word

Now that you know the excellent features of an assured savings plan, make sure you invest in one and be confident of meeting your financial goals.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.