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    LONG TERM SAVINGS

    Here’s Why You Should Invest in a Long Term Saving Insurance Plan

    Last Updated On 16-09-2020

    We all wish to have a comfortable financial life. To achieve the same, we must look beyond banking on our income alone. The best way forward is to make investments that are aimed at achieving our financial goals while suiting our lifestyle.

    One such investment is a savings plan. There are many options available in the market for savings plans, some issued by the Government of India, the others by public and private banks. They may vary in their interest rates, investment term, and tax benefits, thus leaving us with many options to choose from.

    The biggest advantage of a savings plan is that it is backed by the government, making sure that our invested capital is completely safe and secure. They are low on risk and assure good returns.

    It is vital to invest in a savings plan to financially prepare ourselves for any unforeseen medical or personal emergencies. It also instils in us a habit of storing funds for a rainy day.

    What are the advantages of investing in a Long Term Saving Insurance Plan?

    1. Small savings towards investment portfolio - A savings plan allows us to make sustainable savings towards our investment portfolio. This, in turn, helps us build a bigger corpus without having to compromise on our lifestyle. This helps when we are young with a lower income but are keen on investing for our future. 
    2. Highly liquid in nature - The fluid nature of savings plans allows us easy access to our funds in case of an emergency. 
    3. Combined benefits of life insurance and investment - This allows us to secure ourselves and our families while building a capital pool for our financial goals. It also ensures financial security for the family in case of an untimely or early demise. 
    4. Flexibility on maturity payout - Most savings plans provide us with an option to receive a lump-sum amount on the date of maturity. However, some plans also allow a regular stream of income during the policy tenure. Both options are equally helpful depending on the situation and need. In case of building a corpus for our retirement, opting for a lump-sum amount makes better sense. For supporting a child's education, receiving a regular stream of income works out better. 
    5. Tax benefits on the premium amount - Savings plan offers tax benefits up to ₹1.5 lacs. They allow us to claim tax deduction under Section 80C of the Income Tax Act. The amount received upon maturity is also at times exempted from tax under Section 10 (10 D) of the Income Tax Act.

    How to choose a Long Term Saving Insurance Plan?

    1. Investment term
      Like all investment plans, we must start by setting an end goal. This can help us decide the tenure of our savings. The tenure of the plan also sets the precedence for the capital that shall be invested and ultimately, the final amount that we shall receive at the end of our term. Ideally, a savings plan yields better results when invested in for the long term. 
    2. Risk involved
      The savings plan is popular for being a secure, low-risk investment option that is backed by the government. While this is true, some options also allow us to choose a more aggressive approach that ensures higher returns on the capital invested. However, it is important to understand how this risk impacts us in the long run before making any decisions. 
    3. Investment exposure and balance
      At the time of investing our money, it is most important that it should be spread across various investment market instruments. The same should be followed when investing in a savings plan as well. Also, we must try to not stretch our finances too thin while deciding on the premium amounts. This results in the inability to pay the premiums and ultimately, the loss of interest due to penalties. 

    To conclude, it can be wise to invest in a savings plan when looking for a long-term investment. The tool is good for younger individuals who are looking to build financial portfolios while maintaining an investment that is low on risk. A savings insurance plan can provide us with ample flexibility while instilling a habit of saving for exigencies. The plan also provides us with tax benefits and insurance cover in case of a medical emergency. 

    Visit PNB MetLife website to know more about term plan, term insurance & life insurance

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.  

    PNB MetLife India Insurance Company Limited,
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883.
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969.. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203

    AD-F/2020-21/00253

    BEWARE OF SPURIOUS PHONE CALLS AND FICTIOUS /FRAUDULENT OFFERS
    • IRDAI is not involved in activities like selling policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

     

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    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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