How to build Strong Financial Future with Savings Plans

Everyone wants long-term financial security to enjoy a worry-free and comfortable life. This blog aims to help people by discussing how investing in the right Savings Plans can help them build a financially secure future. 

Whether you’re a young individual or a mid-senior-level professional, you will always need strong financial backing to maintain your desired lifestyle while fulfilling your obligations. Savings Plans, such as Assured Income Plans, are one of the best, risk-free ways that can help you build the desired financially fulfilling future. 

If you’re curious how including Savings Plans in your financial planning can contribute to a financially secure future, read the full blog.     

The Importance of a Strong Financial Future

Why Financial Stability Matters

Financial stability is the most important cornerstone of a secure and fulfilling life. When you’re financially stable, you can confidently meet your existing needs and handle whatever challenges life brings tomorrow. Building financial security will give you peace of mind and the freedom to choose plans based on what’s right for you, rather than being driven by economic constraints.   

Common Financial Goals

While different people have different financial goals, most share a few common goals, such as saving for retirement, wealth creation, buying a house, funding children’s higher education, arranging for children’s marriage, etc. 

Regardless of your short and long-term goals, investing in the right Savings Plans can help you fulfil the goal through guaranteed, risk-free income. Many plans feature combined benefits of Savings, Child, and Investment Plans, enabling policyholders to achieve multiple goals faster. 

Introduction to Savings Plans

What is a Savings Plan?

A Savings Plan is a thoughtfully designed financial product to help people build a secure fund over time through disciplined and systematic savings. You must include these plans in your financial planning because they provide dual benefits of wealth accumulation and financial protection through life cover. 

How do Savings Plans Work?

Most Savings Plans work on a straightforward mechanism wherein policyholders pay timely premiums for a pre-determined period. A portion of this payment is allocated towards providing life insurance coverage, while the balance is invested in a pool of low-risk investments that earn steady income. 

This return is paid to policyholders on maturity or after the premium payment term ends. If you’re investing in Shriram Life Assured Income Plan (UIN: 128N053V05), you can receive regular income after a certain period to assist with monthly expenses.

Besides assured income, this plan will also give you life insurance coverage, flexible policy terms, additional protection through riders, and numerous other benefits.

Key Features of Savings Plans

Guaranteed Income Stream

One of the most standout features of Savings Plans, such as Assured Income Plans, is guaranteed income. Returns from these plans remain unaffected by external factors, including market fluctuations, economic downturns, etc., so you benefit from the financial certainty that comes from the fixed income stream. You can use this income predictability to plan your future expenses confidently.

Tax Benefits and Advantages

Besides financial security, your investment in appropriate Savings Plans can earn you significant tax benefits. You can lower your taxable income and liability by claiming the premium payments as a deduction u/s 80C. Returns from some plans may be tax-exempt if certain conditions are fulfilled u/s 10(10D), earning you tax-free income.

How Savings Plans Provide Stability?

Ensuring Financial Stability

Savings Plans ensure your future financial needs are met with certainty and consistency through its guaranteed income feature. The fixed and predictable income from these plans ensures that you don’t have to rely on any family member to meet your living expenses, creating peace of mind.

You must consider investing in Assured Income Plans to enjoy these benefits. If you have other financial obligations, such as funding your children’s education, pair Assured Income Plans with Shriram Life New Shri Vidya Plan (UIN: 128N051V03).

This plan provide dual benefits of Savings and Child Plans, complementing your other investments. These plans will ensure that you effortlessly fulfil all your duties as a father while accumulating wealth for your future and creating a financial cushion for your family.

Selecting the Ideal Savings Plan for Your Needs

Assessing Your Financial Goals

You should always identify your specific financial goals before exploring any Savings Plans. It is non-negotiable to find the right investment option. For example, invest in Assured Income Plans with a regular income feature if your primary goal is to create an additional income generation source.

Those with long-term goals, like retirement planning, can explore options such as Shriram Life Sunishchit Laabh (UIN:128N126V01). This non-linked, non-participating plan is designed to provide long-term, guaranteed income so policyholders can enjoy their golden years comfortably.

Since the plan also gives loyalty additions, additional benefits on female lives, multiple payout options, etc., you don’t have to worry about outliving your savings or income.

Evaluating Risk Tolerance

Risk management should be at the centre of all your investment decisions. Assured Income Plans are recommended to people with low-risk profiles as the returns remain fixed, irrespective of the market conditions.

Those with moderate to high-risk tolerance can explore market-linked Savings Plans that facilitate wealth creation over an extended period.

Conclusion

Having Savings Plans in your portfolio is the easiest and least risky way to build a financially secure future. It brings financial certainty, allowing you to confidently maintain your desired lifestyle. People willing to strengthen their financial future must consider investing in Assured Income Plans because of their fixed-income nature.

At Shriram Life Insurance, one of India’s leading insurance providers, we feature a wide range of Savings Plans to help policyholders build unshakable financial security. Besides Savings Plans, we also feature diverse Protection Plans, Investment Plans, and more to fulfil various financial goals. You can explore the various plans independently or contact us for prompt assistance.