There is no simple answer to this question. The length of your investment depends on your financial objectives. You may have a savings plan to help you build a corpus for a short-term goal, such as buying a car. If this is the case, you may only need to stay invested for a few years. If you’re looking to save up excess funds for your retirement, you might have to invest for a few decades. You must decide your timeline based on your unique financial goals. You can then find a plan that helps you build a corpus for your needs.
Disciplined savings helps achieve life goals in an uncertain world
- Protect your capital invested while you save money
- Get regular returns on your savings structured as per your need
- Make no compromise on an important life goal for yourself or family
When you purchase a savings plan, you benefit from:
1. Life Coverage
Your savings plan offers a life insurance component. If anything were to happen to you, your family will receive the payout ensuring financial protection during a time of need.
2. Financial Discipline
Your savings plan encourages you to put money away regularly. It helps you build a financial habit that will prove useful even later in life.
3. Meeting Financial Goals
You can use a savings plan to steadily build up a corpus for your financial goals. With a savings plan, you can save up money to purchase your dream car, take a vacation, and pay for your child’s education and even plan for retirement.
4. Financial Flexibility
You can customise your savings plan as per your unique needs and requirements. Depending on the plan you choose, you also have the ability to choose how and where your funds get invested for your future. You can pick funds as per your risk appetite and even makes changes depending on your dynamic financial situation.
5. Save Taxes
Savings plans provide life insurance benefits, so they offer tax savings under section 80C of the Income Tax Act, 196113.You can avail a deduction of up to INR 1, 50,000 u/s sections 80C of the Income tax Act, 196113 per year against the money you invest in your savings plan.
6. Guaranteed Returns
Depending on the plan you purchase, you will enjoy returns on your investment when the plan matures. Most often, you can opt for payouts at regular intervals while keeping the plan active
