We all dream differently. Some of us want to retire early and live in the hills, while others want to fund their children’s higher education or start a small business after 50. However, regardless of your goals, achieving them requires more than just hope — it necessitates financial planning, discipline, and an effective savings plan.
Whether you’re starting your first job, planning for your child’s future, or preparing for retirement, a savings plan can play a pivotal role in helping you stay financially secure while also growing your wealth over time. But who really benefits the most from these plans? And how do you know if it’s the right step for you?
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Let’s explore the answers — and the essential factors you should consider before choosing your plan.
What Is a Savings Plan?
A savings plan is a life insurance product designed not only to offer financial protection in the event of unforeseen circumstances but also to help you grow your money gradually over time. Depending on the type you choose, it may offer guaranteed returns, bonuses, tax benefits, or a combination of these features.
These plans provide a disciplined way to set aside funds for specific goals — be it a child’s education, a wedding, a house purchase, or even a secure post-retirement life through a pension plan.
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Who Should Invest in a Savings Plan?
Here are some groups of people who can benefit greatly from a structured savings strategy:
- Young Professionals Starting Their Careers
Starting early allows you to enjoy the power of compounding. A 25-year-old who invests in a savings plan today may accumulate significantly more wealth than someone starting at 35, even if the latter invests more money each month. Plus, premiums are lower when you’re young and healthy. - Parents Planning for Their Child’s Future
Children grow up faster than we think. With rising education costs, a savings plan tailored for child education ensures that your child’s dreams aren’t held back due to a lack of funds. Even in your absence, these plans can continue providing the promised benefits. - Individuals with Long-Term Financial Goals
Planning to buy a home in the next 10 years? Want to travel the world after 50? A savings plan with guaranteed payouts or lump-sum maturity benefits can help you meet these long-term aspirations. - Those Seeking Retirement Security
Retirement shouldn’t be uncertain. A guaranteed pension plan offers regular income even after your professional life ends. It helps maintain your lifestyle and offers peace of mind without relying entirely on your children or uncertain market-linked products. - Risk-Averse Individuals
If you’re someone who prefers security over high-risk market-linked returns, a guaranteed savings plan offers assured benefits without exposure to market volatility. You know exactly what you’ll receive and when.
Explore Aviva’s Comprehensive Savings Plans
Aviva India offers three tailored plans to help you meet your financial goals: the Aviva Signature 3D Term Plan – Platinum, Aviva Signature Increasing Income Plan, and Aviva Signature Investment Plan – Platinum. Let’s break down these plans:
1. Aviva Signature 3D Term Plan – Platinum
This Non-Linked, Non-Participating Pure Risk Life Insurance Plan is designed to safeguard your family against financial uncertainties. Key features include:
- Flexible options such as Life Protect and Credit Protect to meet different needs.
Life Protect offers a consistent level of life insurance coverage throughout the policy term. However, Credit Protect offers financial support for loan repayment, ensuring your family remains stress-free even during tough times.
- Lower premiums for women and non-tobacco users.
- Additional protection riders like:
- Accidental Casualty
- Critical Illness
- Comprehensive coverage for both life protection and health.
- Preventive Wellness Package to promote better health.
2. Aviva Signature Increasing Income Plan
The Increasing Income Plan ensures that you receive a lifelong guaranteed monthly income, which increases every three years. Important benefits include:
- A 15% increase in income every three years to keep up with inflation.
- Stable income stream for you and your family, even in the case of the policyholder’s demise.
- Additional coverage options for critical illness or accidental death.
- Designed to provide financial security for the policyholder’s family.
3. Aviva Signature Investment Plan – Platinum
This ULIP (Unit-Linked Insurance Plan) offers a combination of Security (Sum Assured) and Growth (Fund Value). Key features include:
- Flexibility in managing investments across a range of funds, based on your goals.
- RetireSafe option that shifts your investments to safer options as you approach retirement, ensuring both protection and growth.
- Perfect for those planning for education, retirement, or other long-term goals.
- Invest up to Rs 2.5 Lakh annually in ULIPs to optimise tax efficiency. Over time, tax-free returns on the plan’s maturity enhance financial efficiency while ensuring protection.
Essential Factors to Consider Before Investing
While savings plans offer numerous benefits, choosing the right one depends on several factors:
- Financial Goals: Are you saving for retirement, your child’s future, or building an emergency fund?
- Investment Horizon: Short-term goals require different plans than long-term ones, like a pension plan.
- Risk Appetite: Market-linked plans like ULIPs carry risks, whereas guaranteed plans offer assured returns.
- Liquidity Needs: Consider plans with partial withdrawal or loan options if flexibility is a priority for you.
- Tax Benefits: Choose plans that help you reduce your taxable income.
How a Plan Can Save You Money?
An individual earning Rs 12 Lakh annually can reduce their taxable income by investing ?1.5 Lakh in a life insurance-based savings plan like the Aviva Signature 3D Term Plan – Platinum under Section 80C of the Income Tax Act. This reduces their taxable income to Rs 10.5 Lakh, resulting in tax savings of approximately Rs 45,000. Additionally, the lump sum maturity benefit from the savings plan is exempt under Section 10(10D), provided the plan meets the necessary conditions.
This double benefit of tax-saving while investing and tax-free earnings at maturity ensures that the individual’s post-tax income is optimally enhanced, providing both financial protection and savings for his future.
**As per Section 10(10D), maturity benefits from life insurance policies remain tax-free, provided the premiums do not exceed ?2.5 Lakh per annum, as per the Finance Act 2023 amendments.
Why Savings Plans Are More Than Just Policies?
When you invest in a savings plan, you’re not just signing up for another policy — you’re laying the foundation for financial independence. These plans:
- Build long-term wealth
- Ensure protection for your family
- Promote financial discipline
- Offer tax advantages
- Provide peace of mind
We only get one shot at life, but when managed wisely, it’s more than enough. Whether you’re looking to secure your child’s future, enjoy a peaceful retirement, or simply want a steady, risk-free income, a well-chosen savings plan can help you get there.
With the right pension plan or savings plan from institutions like Aviva India, your dreams are not just possible — they’re planned.
So, take that smart step today. Because your future deserves more than guesswork — it deserves a guarantee.
*Standard T&C Apply
**Tax benefits are subject to change in prevalent tax laws.
***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
****Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.