1800-270-7000
Aditya Birla Sun Life Insurance Company Limited
Aditya Birla Sun Life Insurance Company Limited
Guaranteed Returns After A Month1.
Guaranteed# Income
Life Cover
Lumpsum Benefit at maturity in addition to income
Why Do You Need a Savings Plan?
Having a savings plan is essential for several reasons:
Financial Security
A robust savings plan provides a safety net in times of unexpected expenses, such as medical emergencies or sudden loss of income, ensuring that you are financially protected.
Achieving Financial Goals
Whether it's buying a home, funding education, or planning a wedding, specific financial goals require substantial funds. A savings plan helps you systematically accumulate the necessary capital over time without resorting to last-minute loans or debt.
Peace Of Mind
Knowing you have money set aside can significantly reduce stress and anxiety about the future. It ensures you are prepared for any financial challenges that may arise.
Building Wealth
Over time, a savings plan can help build substantial wealth, especially if it involves investment components that yield returns, thus growing your initial savings further.
A well-structured savings plan is not just about storing away money; it's a proactive approach to managing your finances effectively, ensuring long-term stability and peace of mind.
Types Of Savings Plans
Savings plans come in various forms, each suited to different financial needs and goals. Here are some common types of savings plans available:
Regular Savings Account
A basic banking service where you can deposit money and earn interest. These accounts offer liquidity and are best for short-term savings.
Fixed Deposits (FDs)
Offer a higher interest rate than regular savings accounts. Money is deposited for a fixed term, and withdrawing funds before maturity can incur penalties.
Recurring Deposits (RDs)
Similar to FDs, but you deposit a fixed amount regularly (usually monthly). This is ideal for individuals who earn a regular income and want to save a portion every month.
Public Provident Fund (PPF)
A long-term savings scheme backed by the Government of India, offering tax benefits*. It has a maturity period of 15 years, extendable in 5-year blocks, and is ideal for risk-averse investors looking for stable returns.
Systematic Investment Plans (SIPs)
While technically an investment rather than a savings plan, SIPs in mutual funds allow you to invest a fixed amount regularly. This can be a part of a savings strategy, particularly for long-term financial goals.
Life Insurance Savings Plans
These are savings plans combined with life insurance cover, such as those offered by ABSLI. They not only help in saving money but also provide financial protection to your family in case of unforeseen events.
Who Should Invest In a Savings Plan?
Investing in a savings plan is beneficial for virtually anyone who earns an income, regardless of the amount. Specific groups who might find it especially beneficial include:
Young Professionals
Starting early can take advantage of compound interest, significantly increasing the value of their savings over time.
Families
Parents or guardians can use savings plans to accumulate funds for their children’s education, marriage, or to purchase a family home.
Retirees
Those nearing or in retirement can benefit from savings plans that offer stable returns and help manage living expenses in the absence of regular income.
Business Owners
They often face fluctuating incomes and can use structured savings plans to manage cash flow effectively and save for lean periods.
In essence, anyone with financial goals or the need for financial security should consider integrating a savings plan into their financial strategy to ensure they are well-prepared for the future.
How Does a Savings Plan Work?
A savings plan functions by setting aside a specific amount of money on a regular basis into a chosen financial instrument, where it can either earn interest or grow in value through investment gains. Here’s a breakdown of how a typical savings plan operates:
Setting Goals
Determine what you are saving for, whether it's retirement, education, a major purchase, or an emergency fund.
Choosing The Right Plan
Select the type of savings plan that best suits your financial goals, risk tolerance, and time horizon. This could be a regular savings account, fixed deposit, or a more growth-oriented plan like mutual funds.
Regular Contributions
Make regular deposits into your savings plan, often set up as automatic deductions from your bank account. This discipline is crucial for building your savings over time.
Compounding: Over Time
The money in your savings plan earns interest or investment returns, which are reinvested to generate their own returns. This compounding effect accelerates the growth of your savings.
Monitoring And Adjustments
Regularly review your savings plan to ensure it remains aligned with your financial goals and market conditions. Adjustments may be needed based on life changes or financial performance.
Factors to Consider Before Investing In a Savings Plan
When choosing a savings plan, consider several important factors to ensure it meets your financial needs and goals:
Financial Goals
Clearly define what you are saving for. Your goals will influence the type of savings plan you choose and the risk you are willing to take.
Risk Tolerance
Assess your comfort level with risk. Higher risk plans typically offer higher returns but come with more volatility. If you prefer stability, consider lower-risk options.
Time Horizon
Consider how long you can invest your money. Longer-term goals may allow you to choose investments with potentially higher returns, despite short-term fluctuations.
Liquidity Needs
Think about how quickly you might need to access your money. Savings plans like fixed deposits have penalties for early withdrawal, while regular savings accounts offer more liquidity.
Tax Implications
Some savings plans come with tax advantages that can significantly impact your overall financial strategy. For example, PPF contributions and interest earned are not taxable under Indian tax laws.
Fees And Charges
Understand any fees or charges associated with the savings plan, as these can eat into your returns over time.
By carefully considering these factors, you can select a savings plan that not only helps you save effectively but also complements your overall financial strategy, ensuring you achieve your desired financial outcomes.
Key Features Of A Savings Plan
Savings plans are designed to encourage regular saving habits and provide financial security. Here are some key features that characterize a good savings plan:
Regular Deposits
Most savings plans require regular deposits, either monthly, quarterly, or annually, promoting disciplined saving habits.
Compounding Interest
Many savings plans offer compounding interest, where the interest earned itself earns additional interest over time, potentially increasing the total return on the savings.
Tax Benefits*
Certain savings plans, like Public Provident Fund (PPF) or certain life insurance savings plans, offer tax benefits* under sections of the Income Tax Act, which can provide additional financial advantages.
Flexibility
Some savings plans offer flexibility in terms of deposit amounts and the frequency of contributions, making it easier for savers to adjust their saving habits based on their financial situation.
Liquidity
While some plans, like fixed deposits, may have restrictions on withdrawals, others may offer better liquidity, allowing savers to access their funds when needed.
Security
Savings plans often provide a safe investment avenue as they are not exposed to high market volatility, and in many cases, are backed by reputable financial institutions or government guarantees.
Goal Orientation
Many plans are geared towards helping savers achieve specific financial goals, such as saving for retirement, education, or purchasing a home.
Benefits Of Having a Savings Plan
A well-structured savings plan can offer numerous benefits, including:
Financial Security
By setting aside funds regularly, a savings plan provides a financial buffer against unexpected expenses and emergencies, reducing the need to rely on credit.
Achievement Of Financial Goals
Whether it's buying a house, funding a child’s education, or planning for retirement, a savings plan helps you accumulate the required funds systematically and gradually.
Peace Of Mind
Knowing that you have a growing fund for future needs can significantly alleviate stress and provide mental and financial peace of mind.
Wealth Accumulation
Over time, the compounding effect of interest or investment returns can lead to substantial wealth accumulation, allowing you to not just meet, but possibly exceed your financial goals.
Tax Savings
Many savings plans come with the benefit of tax deductions on the investment made and tax-free returns, providing additional financial incentives and savings.
Encourages Financial Discipline
Regular contributions to a savings plan instil financial discipline, a crucial aspect of effective money management.
Overall, a savings plan is not just a tool for managing finances but a critical component of a comprehensive financial strategy that ensures long-term security and stability.
Guaranteed# Income
Lumpsum Benefit at policy maturity, in addition to Income
Life Cover across policy term
Get:
₹33.74 lakhs²Pay:
₹10K/month for 10 years
Life insurance cover with guaranteed#benefits
Receive Loyalty Additions
Guaranteed#returns
Comprehensive life cover
Cover spouse in same policy
Get:
Rs.₹5.61 lakhs³Give:
Rs .₹5,000/- monthly for 6 years:How Long Should You Invest In a Savings Plan?
The duration for which you should invest in a savings plan largely depends on your financial goals, risk tolerance, and life stage. Here are some guidelines to help determine the appropriate length of time for your investment:
Short-Term Goals (1-3 years)
For goals like saving for a vacation, emergency fund, or a major purchase in the near future, choose savings plans that allow easy access to funds without penalty and offer stable returns.
Reputation And Stability
As part of the reputable Aditya Birla Group, ABSLI brings reliability and trustworthiness to your investments, backed by years of industry experience and financial expertise.
Tax Benefits*
ABSLI savings plans come with attractive tax benefits* under the Income Tax Act, which can enhance your overall financial savings and reduce tax liability.
Flexibility
ABSLI offers plans with flexible premium payment terms, payout options, and the ability to add riders for additional protection, allowing you to customize your savings plan according to your changing life needs.
Customer Support
ABSLI is known for its strong customer support services, providing assistance and guidance through various channels, ensuring that you have the help you need to manage your savings effectively.
Innovative Products
With a focus on innovation, ABSLI continuously updates its product offerings to include features that cater to evolving customer needs, such as plans with market-linked returns or those offering specific guarantees#.
Investing with ABSLI not only helps in securing your financial future but also ensures you are partnering with one of the leaders in the financial services industry in India, known for its customer-centric approach and robust financial solutions.
Why Choose A Savings Plan From ABSLI?
Choosing a savings plan from Aditya Birla Sun Life Insurance (ABSLI) offers several advantages:
Comprehensive Financial Solutions
ABSLI provides a variety of savings plans tailored to meet different financial needs and goals, from retirement planning to securing your child’s future, ensuring you have a plan that fits your unique circumstances.
Reputation And Stability
As part of the reputable Aditya Birla Group, ABSLI brings reliability and trustworthiness to your investments, backed by years of industry experience and financial expertise.
Tax Benefits*
ABSLI savings plans come with attractive tax benefits* under the Income Tax Act, which can enhance your overall financial savings and reduce tax liability.
Flexibility
ABSLI offers plans with flexible premium payment terms, payout options, and the ability to add riders for additional protection, allowing you to customize your savings plan according to your changing life needs.
Customer Support
ABSLI is known for its strong customer support services, providing assistance and guidance through various channels, ensuring that you have the help you need to manage your savings effectively.
Innovative Products
With a focus on innovation, ABSLI continuously updates its product offerings to include features that cater to evolving customer needs, such as plans with market-linked returns or those offering specific guarantees#.
Investing with ABSLI not only helps in securing your financial future but also ensures you are partnering with one of the leaders in the financial services industry in India, known for its customer-centric approach and robust financial solutions.
Eligibility Criteria For Buying Savings Plan
The eligibility criteria for buying a savings plan can vary depending on the type of plan and the financial institution offering it. However, some general criteria apply to most savings plans:
Age
The minimum and maximum age for purchasing a savings plan can vary. Typically, individuals can start investing from as young as 18 years old, and the upper limit might go up to 60 years or more, depending on the specifics of the plan.
Income
Some savings plans may have a minimum income requirement to ensure that the policyholder can maintain regular premium payments without financial strain.
Health Status
For savings plans that include life insurance coverage, your current health and medical history might be assessed. This could influence the terms of the plan or the premium amounts.
Financial History
A clean financial history, including a good credit score and no history of bankruptcy, might be required, as it indicates financial responsibility and stability.
Residential Status
You typically need to be a resident of the country where the financial institution operates. For instance, ABSLI may require policyholders to be residents of India for certain products.
Purpose Of The Investment
The intended purpose for the savings might also be considered to align with specific product offerings that best meet the policyholder's goals.
Documents Required For Buying A Savings Plan
When applying for a savings plan, certain documents are necessary to verify your identity, address, and income. Here’s a typical list of required documents:
Identity Proof
A copy of your PAN card, Aadhaar card, passport, or driving license can serve as proof of identity.
Address Proof
Documents like recent utility bills, bank statements, Aadhaar card, or passport are needed to verify your current residence.
Income Proof
This could include recent salary slips, income tax returns, or bank statements, particularly if the savings plan requires a certain income level or if it is linked to investment options.
Age Proof
A birth certificate, passport, or any government-issued document that confirms your age is required.
Photographs
Recent passport-sized photographs may also be required for the application process.
Other Documents
Depending on the plan and the provider, additional documents such as a medical report or a statement of health may be requested.
Having these documents ready can streamline the application process and help ensure that your savings plan is set up without delays.
What Is The Complete Savings Plan Claim Process?
The claim process for a savings plan is designed to be straightforward, ensuring that beneficiaries or policyholders can access their funds without undue hassle. Here’s a general overview of the typical claim process for a savings plan:
Notification Of Claim
The first step is to notify the insurance provider about the claim. This can be done by contacting the customer service department or through the insurer's website.
Submission Of Documents
The claimant must submit all required documents to support the claim. This usually includes the claim form, identity proof of the claimant, policy documents, and any other relevant documents like a death certificate in case of the policyholder's demise.
Claim Assessment
Once the documents are submitted, the insurer assesses the claim to verify its validity. This may involve checking the authenticity of documents and ensuring that the claim complies with the terms of the policy.
Claim Approval
If the claim is valid and all terms are met, it will be approved. The insurer may communicate the decision to the claimant and provide details about the payout process.
Disbursement Of Funds
The final step is the disbursement of funds to the claimant. The mode of payment (such as cheque or direct bank transfer) and the timeline for disbursement will be communicated by the insurer.
Steps To Buy Savings Plan Online At ABSLI
Buying a savings plan online from Aditya Birla Sun Life Insurance (ABSLI) is convenient and can be done in a few simple steps:
Visit The ABSLI Website:
Start by visiting the official ABSLI website. This platform provides detailed information about the different savings plans available.
Choose A Savings Plan
Browse through the various savings plans offered and select one that best suits your financial goals and needs. Detailed product brochures are available for each plan, which provide comprehensive information including benefits, premiums, terms, and conditions.
Calculate Premiums
Use the online calculators available on the ABSLI website to estimate the premiums for the chosen savings plan based on your age, income, investment amount, and other factors.
Fill Out The Application Form
Complete the online application form by providing personal information, financial details, and any other required information. Ensure that all the information is accurate to prevent any issues during the claim or policy management process.
Submit Necessary Documents
Upload the required documents such as identity proof, address proof, income proof, and any other relevant documents directly on the website. 6. Make Payment: Pay the initial premium online through secure payment options available on the ABSLI website. Payment methods typically include net banking, credit/debit cards, or mobile wallets.
Make The Payment:
After submitting the application form, you'll be redirected to the payment gateway. Choose your preferred payment method, such as credit card, debit card, net banking, or UPI, and complete the payment for the first premium.
Policy Issuance
Once the payment is processed and the application is approved, ABSLI will issue the policy. The policy document will be sent to you electronically or can be downloaded directly from the website. By following these steps, you can conveniently purchase a savings plan from ABSLI, helping you secure your financial future directly from the comfort of your home.
What Are The Riders For Savings Plans?
Riders^ are additional benefits that can be attached to a primary savings or insurance policy to enhance the coverage and tailor it to specific needs. These optional benefits come at an extra cost but offer increased protection and financial security. Here are some common riders that can be added to savings plans:
Looking for Assistance?
Need help with your existing policy? Call us on our toll-free no. for quick response!
1800 270 7000FAQs
Saving insurance plans, such as those offered by ABSLI, often come with tax benefits* under the Indian Income Tax Act. Premiums paid towards these plans can be eligible for tax deduction under Section 80C, up to a limit of ₹1.5 lakh per annum. Additionally, the proceeds (maturity benefits or death benefits) from these plans are generally tax-free under Section 10(10D)**, provided certain conditions are met. This makes them an attractive option for tax-saving as well as long-term financial planning.
The choice between long-term and short-term saving investments depends on your financial goals and liquidity needs. If you have a long-term goal like retirement or buying a home, then long-term investments, which usually offer higher returns through compounding, are suitable. For short-term goals, such as creating an emergency fund or saving for a vacation, short-term investments that provide quick access to your money and lower risk are preferable.
Some of the best saving schemes with relatively high-interest rates include Fixed Deposits (FDs), Recurring Deposits (RDs), Public Provident Funds (PPF), and National Savings Certificates (NSC). Each of these schemes offers different benefits in terms of interest rates, tax savings, and investment tenure. Choosing the right scheme depends on your risk tolerance, investment horizon, and specific financial goals.
The amount an average person has in savings can vary widely based on factors like age, income level, and geographical location. In India, savings rates are influenced by cultural attitudes towards saving and financial security. However, it's generally recommended that individuals strive to save at least 20% of their monthly income, though this can vary based on personal circumstances and financial obligations.
To start saving money effectively for 2024, begin by setting clear, achievable financial goals. Create a detailed budget to manage your income and expenses, and identify areas where you can cut costs. Consider automating your savings to ensure you consistently set aside a portion of your income. Explore various saving tools and accounts that offer competitive interest rates to maximize your savings potential. Additionally, stay informed about economic trends and adjust your saving strategies accordingly to stay on track with your financial goals.
# Provided all due premiums are paid.
^There are exclusions attached to the riders. Please refer rider brochure for more details
² Male- 25 yrs invests in ABSLI Nishchit Aayush Plan with Level Income + Lumpsum Benefit. He chooses premium payment term 10 yrs , policy term 40 years, benefit option -Long Term Income, Sum Assured 7 times of Annualized Premium and Deferment Period 0 years. Annualized Premium is ₹1,20,000 (Exclusive of GST.). Annual Income of ₹ 42,360 (42,360*40= 16,94,400) + Maturity Benefit (₹16,80,000)= ₹ 33,74,400
³ Assured Savings Plan :Scenario: Healthy female age 21, investment for 6 years, maturity benefit after 12 years, payment frequency monthly, Sum Assured Rs.8,34,000 lakhs, monthly investment Rs.5000/-. You give Rs.3.60 lakhs and get Rs.5,61,960/-.
⁴ Scenario: Healthy male age 21 years, premium paying term 12 years, policy term 13 years, benefit payout period 20 years, payment frequency annually, Assured Benefit Option: Income with Lumpsum Benefit, Sum Assured Rs.16.68 lakhs, Premium Rs.1.2 lakhs/ year- excluding GST), you get Rs.44.64 lakhs by age 54
⁵ ABSLI SecurePlus Plan, Healthy male age: 21 years. Premium Payment Term 12 years, Annual Premium Rs.50,000/-,policy term 15 years, Payment Frequency: Annually, benefit payout period: 6 years, Get Income Benefit of Rs.1,27,300/- +Loyalty Additions of Rs.63,650= Regular Income of Rs.1,90,950 p.a for 6 years.
⁶ ABSLI Fixed Maturity Plan: Scenario: Rs. 1,00,000 Single Premium (exclusive of GST), Male, Age 32, Plan Option A, Policy Term : 10 years. Maturity Benefit: ₹1,77,950.
⁸ ABSLI Guaranteed Milestone Plan, healthy male, age 21, premium payment term 6 years, premium of Rs.15000/- for 6 years, payment mode: annual, maturity benefit of Rs.1,21,248/- at the end of policy term of 12 years, a life cover of Rs.2.25 lakhs.
ABSLI Nishchit Aayush is a non-linked non-participating individual savings life insurance plan (UIN No 109N137V11)
ABSLI Fixed Maturity Plan is a Non- Linked Non- Participating Individual Savings Life Insurance Plan (UIN: 109N135V06)
ABSLI Assured Savings Plan Non-Linked Non-Participating Individual Savings Life Insurance Plan (UIN: 109N134V11).
ABSLI Assured Income Plus Plan is a Non-Linked Non-Participating Individual Savings Life Insurance Plan (UIN: 109N127V16).
ABSLI Secure Plus Plan is a non-linked non-participating individual savings life insurance plan (UIN:109N102V12).
ABSLI Guaranteed Milestone Plan is a non-participating traditional insurance plan (UIN: 109N106V13)
ABSLI Savings Plan is a non-linked participating life insurance endowment plan (UIN: 109N088V02). Some benefits are guaranteed#, and some benefits are variable with bonuses based on the future performance of the participating business and economic conditions.
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