In this economy, relying on a single income can turn into a grave problem overnight. If the recent decade has taught us anything, it is how fickle our health and wealth actually are. That is why it is so important to plan for you and your loved ones’ future. While things are unpredictable, precautionary measures can ease your troubles considerably.
Some of the best options for future securities are investments, life insurance policies, and savings plans. These schemes are designed to offer future financial stability with little planning in the present. Let’s see how you can use these means to secure your future finances effectively.
How savings plans help secure your future?
Savings plans have served as excellent financial thresholds for centuries. In the early years, people would store their gold and currencies in a safe place at home. With advancements came the facilities to build savings plans in banks, government schemes, insurance policies, etc. Here are the top savings plan to consider in today’s market:
- Provident Funds –
These are available as Employee Provident Funds and Public Provident Funds. You need to set aside a specified sum of money regularly. In return, you earn a definitive return on your investment over the long run. - Savings certificates –
These are government schemes in which you can invest a sum of money for a specified time. They are available through post offices, and the investment earns you profits systematically. - Pension systems –
You can use these savings plans to build a corpus for your golden years. Options are available under government schemes as well as insurance policies. You may receive the payout as a lump sum amount or in the form of monthly income after retirement. - Fixed deposits –
One of the surest savings plans is FDs, wherein you invest a sum of money regularly to earn a predefined amount of guaranteed profits. - Endowment Plans –
Life insurance policies also help earn money and build savings funds. These plans earn bonuses over time that you can withdraw for emergencies. - Money-back insurance plans—
These insurance schemes allow you to withdraw part of the premium investments at regular intervals to tackle financial setbacks.
Other, more targeted forms of savings plans aim to fulfil the requirements of particular groups, such as:
- Sukanya Samriddhi Plans – These savings plans aim to secure the future of female children by building a substantial corpus for their life stages and ambitions.
- Kisan Vikas Patra – These are small savings plans with shorter durations to earn guaranteed profits.
Based on your choice of savings plans, you can earn more or less from the investment. You need to choose an option that does not require too much investment, which could be presently inconvenient. However, it should build enough savings to tackle future financial setbacks.
Life insurance policies for future security
Another major contributor to savings plans is insurance policies. Not only do they provide a financial safeguard for your loved ones but they may also serve as excellent savings schemes for you. Let’s break this concept down to understand how insurance can help build a secure future.
Let’s assume you purchase a term insurance policy with 30 lakhs sum assured for 10 years. You will periodically have to pay the 30 lakh term insurance premium to secure the policy. In the event of your demise within the 10-year policy tenure, the insurance provider will pay 30 lakhs as a death benefit to your loved ones.
Term insurance is an affordable form of life insurance policy. Therefore, the 30 lakh term insurance premium will be manageable enough that you can assuredly secure your family’s future.
Term insurance plans come in many forms. If you opt for return of premium, these policies not only secure your family’s future and become a savings plan for them but it also becomes one for you.
With the current example in mind, let’s say you purchase term insurance with a return of premium. If you survive the 10-year tenure, then the insurance provider will refund the 30 lakh term insurance premiums that you paid over the years. This would be a lump sum amount that can help you navigate current financial crunches.
Choosing the right life insurance policy for you with the appropriate add-ons and benefits can serve as a financial safety net for you and your loved ones.
Conclusion
These days, savings plans are available in many forms. You need to evaluate your capacity for investing in these schemes and your financial goals for the future. Based on these assessments, you can invest your money in regular savings bonds, certificates and schemes or opt for options that offer earnings.
Insurance plans are remarkable solutions to build a secure future. They serve to build a corpus for you and your family, and they offer additional financial support to those you love in the event of your death.