Best Saving Plans in India

Investing in a savings investment plan is an important financial decision. Before you take this step, you need to consider certain important things. Here’s a list of some of the areas to think of before you purchase a savings investment plan.

• Does the savings plan offer financial benefits that will help you meet your goals?
• Do you have enough earning capacity to continue to pay the premium required throughout the term of the savings plan?
• Are you within the age gap specified in the eligibility criteria?
• Do you understand the terms and features of the savings plan clearly?
• Are the death benefits promised enough to get your family through a financial crisis in the event of your demise?
• In case you survive the term of the savings plan, are the maturity benefits enough to help you meet your goals for retirement?

The premium payable on a savings plan depends on a number of factors. Typically, it’s calculated after taking into account the age of the investor, the tenure of the savings plan, the financial benefits offered by the scheme, and the type of coverage provided. Generally, you can calculate the premium on a savings plans using the online calculator provided on the web portal of the financial institution from which you’re purchasing the plan. Alternatively, you can also ask your agent to help you arrive at the amount of premium you’ll be required to pay. It’s essential to understand how your premium is calculated and to ensure that you’re comfortable with the amount of premium being charged for your plan.

A savings plan can be purchased online or offline. Considering the advancement of technology, buying a savings plan online offers the policyholder several advantages. Here’s why you should buy a savings plan online.

• It’s easier to compare the benefits offered by various plans.
• The documentation is simpler and more straightforward.
• It’s more convenient to make the purchase online.
• Some savings plans even offer the possibility of lower premiums when purchased online, since there’s no third-party commission involved.

Purchasing a savings investment plan is a legal contract. So, to invest in this kind of a plan, you need to submit certain necessary KYC documents. They help the financial institution assess the level of premium you need to pay. The requirements may vary from one service provider to another. However, here’s a general list of the documents generally needed to buy a savings investment plan.

• PAN Card
• Aadhaar Card
• Voter ID
• Passport
• Driving License
• A utility bill (like electricity, gas, or telephone bills)
• Ration Card
• Income documents like salary slips or income tax returns
• Bank statements spanning across the past 3 or 6 months
• A photograph of the applicant 

With these documents, you can apply to purchase a savings plan that’s right for you. If you’re purchasing the savings plan online, you’ll need a soft copy of these proofs.

PNB MetLife has an assortment of various savings plans, each tailored to meet a different financial need. We believe that savings and investments should go hand-in-hand with other benefits like tax savings and a protective life cover. This is why we’ve put together various financial benefits in the form of savings plans, so you can invest in making the future of your family brighter. By investing in a Long Term Savings Plan from PNB MetLife, you get to experience many advantages like schemes suited for your specific financial goals and affordable premiums.

By bringing together the combined financial strength and credibility of PNB, one of the leading banks in the country, and MetLife, a globally trusted insurance service provider, PNB MetLife smartly combines the two essential financial benefits of investment and insurance to ensure that you and your family enjoy the financial support required to meet your short-term and long-term goals.

Over the years since its inception, PNB MetLife has earned a national presence is distributed across over 111 cities. We’ve also seen our client base grow to include over 100 million customers, whom we’re committed to serve.

A Long Term Savings Plan is akin to a life insurance policy that does much more than merely offer you a protective life cover. It can help your money grow, since it is essentially a financial scheme that combines the benefits of a life insurance policy and an investment. The terms and benefits vary from one savings plan to another. Generally, however, savings plans can offer you advantages like a steady stream of income, a lump sum payout after a specific number of years, or additional riders over and above the life cover.

Before you get started with a savings investment plan, you need to ensure that you choose the right option. Your savings investment plan needs to align with your financial goals. So, take a look at the various kinds of savings plans offered by financial institutions and understand the benefits offered by each scheme. Some may promise guaranteed additions, others may offer riders that help you meet the financial obligations that come with critical illnesses, and yet others may give you the option to enjoy additional bonuses right from the first year of the policy. Pick the ones that fit in with your financial goals, so you can earn benefits that help you achieve your long-term and short-term objectives.

Once you’ve identified the right savings plan for you, check the eligibility conditions and ensure that you qualify for the plan. If you do, you can invest in the plan through the service provider’s online portal, or directly head to the financial institution’s branch office and purchase the plan offline. Another way to get started with a savings plan is to invest in one through an agent employed by the insurer.

An endowment plan is a kind of savings investment plan that combines insurance and investment. It allows you to save for the future while simultaneously offering you a protective life cover. In exchange for premium paid on a regular basis, an endowment plan offers a guaranteed sum assured in case of the policyholder’s demise. If the insured survives the policy term, maturity benefits are generally paid out to the policyholder. Additionally, an endowment plan also allows you to add on a rider for financial support in case of an accident or diagnosis of a critical illness.

So, should you buy an endowment plan? The answer is an unequivocal yes. This is particularly true if you want to receive a lump sum monetary benefit around the time you retire.

A money back savings plan is a kind of scheme where the insured receives a percentage of the sum assured at regular intervals. Payouts can be monthly, semi-annual, or annual. The advantage of a money back plan is that it gives you a steady stream of income to fall back on throughout the term of the policy, while also offering you a protective cover and a sum assured at the end of the policy’s term.

You need a savings investment plan because it helps you invest your money in a disciplined manner. In addition to this, a savings investment plan also gives you a host of advantages in return for regular premium payments. The benefits range from a lump sum payment at the end of the policy’s term to regular monthly payments. It also includes tax benefits, since a savings investment plan is also a tax saving option.

By choosing the right savings investment plan, you can achieve your financial goals faster. It’s also a smart way to secure your future, because a savings investment plan offers you a protective cover in the event of death, accidents, or critical illness, depending on the riders you opt for.

Depending on the kind of benefits they offer, there are various types of savings plans. Some of the most commonly preferred policies include endowment plans, guaranteed income policies, super saver plans, income protection plans, and money back plans. There are also specific savings plans that help pay for your child’s education, such as the College Plan, and schemes like the Smart Child Plan that helps you secure your child’s future financially.

When you purchase a savings investment plan, you’re required to make regular premium payments to the service provider. These premiums may be monthly, quarterly, semi-annual, or annual payments. Irrespective of the schedule of payment, the premiums paid for purchasing a savings plan can offer you tax benefits.

According to section 80C of the Income Tax Act, 1961, the premiums paid for investing in a savings investment plan during a financial year can be claimed as a deduction from the total taxable income for that year, up to an upper limit of Rs. 1.5 lakhs. This, in turn, reduces the amount of tax you’ll need to pay, thereby bringing your tax liability down.