In order to pay for big ticket items in the future, you need to create a strong financial plan in the present. However, with so many financial responsibilities, it is often hard to save up money for the future. One of the best ways to set aside funds in a disciplined way is by opting for an insurance savings plan.
An insurance savings plan lets you put aside money in the form of premiums. This money grows and accumulates returns which can potentially help you grow your wealth. You can choose the plan’s maturity so that it coincides with planned major life events. For instance, if you are planning to buy a new home around 10 years later, you can choose your insurance savings plan to mature around the same time so you get the funds you need.
Better yet, you can also opt for a savings plan with yearly cash benefits too! This way, you do not have to wait for the plan to mature before you receive benefits. Interested to know more? Read on to discover what you need to know about a savings plan with cash benefits.
The premium and plan terms are flexible
One of the biggest advantages of these savings plans is that their premiums and terms are flexible. The plan term usually varies between 15 and 25 years and the premium term usually varies between 5, 10, 15, 20, and 25 years.
There is a yearly cash benefit
This benefit usually kicks in during the plan’s second year. This yearly cash benefit is generally given as a certain percentage of the plan’s face value. You may take the amount or even choose to keep it with the insurance company to further accumulate returns.
A savings plan with yearly cash benefits also comes with a death benefit payout. This provides added life insurance protection for your loved ones. If something unfortunate happens prematurely to you, your family will at least receive some amount of financial protection.
Available supplementary benefits
Just like other insurance plans, a savings plan with yearly cash benefits can also be enhanced with riders. These riders truly add value to your base plan and allow you to benefit from added protection. You can look for riders that offer the following benefits –
- Waiver of pending premiums if you are diagnosed with a critical illness
- Waiver of premiums for a certain number of years if you are diagnosed with an early stage or intermediate stage medical condition.
- Waiver of the premiums of the spouse or child’s plan if you are diagnosed with a critical illness, total permanent disability or if you pass away
Best of all, you can easily sign up for an insurance savings plan with no hassle. Medical underwriting is not even required.
You may want to speak to a financial consultant for help in choosing the right plan.
We hope that this has been an informative read. All the best!