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  India   All India  17 Jan 2020  Are You Looking For Some New Options For Saving?

Are You Looking For Some New Options For Saving?

THE ASIAN AGE.
Published : Jan 17, 2020, 5:29 pm IST
Updated : Jan 17, 2020, 5:29 pm IST

In 2020, you can choose from some new and unique options when it comes to investing and saving money.

When you think of saving options in India, the first name that comes to mind is that of life insurance.  These are the simplest kinds of policies that are easy to understand and are also economical. (Photo: File | Representational)
 When you think of saving options in India, the first name that comes to mind is that of life insurance. These are the simplest kinds of policies that are easy to understand and are also economical. (Photo: File | Representational)

Mumbai: Saving and investing money is an essential part of leading a stress-free life. Whether it's for an unforeseen emergency or for your family's future, setting money aside and saving it is the most preferred option to prepare for any expense that exceeds your income.

In 2020, you can choose from some new and unique options when it comes to investing and saving money.

Since every individual has their own savings need, the best option is likely a combination of products that fulfils your saving need and are affordable.

When you think of saving options in India, the first name that comes to mind is that of life insurance.

These are the simplest kinds of policies that are easy to understand and are also economical.

Below are certain types of life insurance plans, which may be new to you and would help you save money and invest in your future needs along with providing you with an insurance coverage.

Unit linked plans

These are also known as ULIPs. They are comprehensive insurance plans that combine investment with insurance. The premium that you pay in this case would be used in parts.

A part would be used for risk coverage. The rest would be invested in the capital market.

The insurer would offer you various funds. You would be allowed to choose from various such finds based on your risk appetite. Different options would be presented to you in this case such as the following:

•    bonds
•    debts
•    equities
•    hybrid funds
•    market funds

If you plan to choose a provider like Canara HSBC Oriental Bank of Commerce Life Insurance, their Invest4G Plan provides flexibility of switching and redirection between the fund options to change in risk preferences.

It also provides an option for partial withdrawals to help you meet unplanned contingencies.

Endowment plans

The endowment plan is one of the different types of life insurance that you have in India. This one combines savings and insurance.

A specific amount here is kept away for your life cover. Your insurer invests the rest of it.

In such a plan there is a chance that you can live more than the period for which the policy would be in effect.

In such a case you would be presented a maturity benefit. On top of this, these policies could also offer you bonuses from time to time. They may be paid to you when the policy matures.

The money can also be paid to your nominee as part of a death claim.      

Money-back life insurance

This is a unique kind of life insurance. In such a policy a certain part of the sum assured would be paid back to the policyholder at definite intervals. This is done as a kind of survival benefit.

Your insurer declares bonuses from time to time. These plans are eligible to receive such benefits as well.

Thanks to such payment you would be able to satisfy your financial goals in the short term.

These plans also help you earn good returns on maturity.

 

No Asian Age Group journalist is involved in creating this content. The Group also takes no responsibility for the content. 

Tags: life insurance, saving, risk coverage
Location: India, Maharashtra, Mumbai (Bombay)