- There are situations when combining protection and savings turns out to be a prudent financial decision
- Endowment and money back life insurance policies have protection and savings elements weaved into them
- These products offer you a substantial life insurance coverage and aid you in saving regularly for wealth creation in the long run
Should I combine protection and savings? Absolutely. Not only do you get a life cover, but you also get periodic pay-outs (in the case of money-back plans) to address your financial needs. It will help you plan your life with the expected pay-outs defining the major events in your life such as a wedding, children’s education, their wedding, etc.
Read on to know when it's ideal to combine both these elements.
- You haven’t started saving yet
Saving schemes require long-term investment to build a sizeable corpus. If you haven’t started your savings plans early then consider a combination of savings and protection plans. 35-year-old Amit Mehra is buying a protection cum savings plan. It will not only provide his family with a life insurance cover, but also provide him with regular money backs while he will be still paying his premium.
In case of his demise during the policy term, the plan will provide his nominee the sum assured with the accumulated bonuses. Thus, this plan will help him secure the future of his dependents financially, while also help build wealth.
- You may not possess the expertise
While the internet is a treasure trove of information, not everyone has the skills to identify the right financial instrument and capitalise on market movements.
When you buy traditional life insurance policies such as an endowment plan, your insurer saves a portion for building your savings corpus, while the other is used to offer life insurance cover. Thus, it fulfils your dual need for protection and savings. Combining these elements, such a plan is your passport to a secured financial future.
- You have an appetite for low-risk
Equities and ULIPs have the potential to generate high returns, in the long term. However, for conservative investors, you can choose to invest in a savings-cum-protection plan that remains immune to market performance.
- Assured benefits are important to you
Combining protection and savings is a good idea when you need periodic pay-outs to plan and address various goals, keeping life coverage intact. Life insurance policies such as money back plans offer you periodic pay-outs that help you plan your financial goals.
For example, Exide Life My Money Back Plan offers you uniform pay-out at distinct intervals of your chosen premium payment term. Thus, you know when you will have funds at your disposal to address major milestones in your life. Keeping you and your dependents protected from the uncertainties of life, this plan also acts as a source of additional income.
As you can see, combining protection and savings is a diligent decision in the above situations.
Exide Life Insurance offers a gamut of policies where protection and savings are weaved into a single product. Choose any of our policies for substantial life cover and savings for wealth creation.
