Long Term Savings: Best Tax Saving Plans & Policies in India - PNB MetLife

Long Term Savings Plans

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PNB MetLife Smart Platinum
  1. Flexible premium payment options
  2. Auto rebalance investment portfolio
  3. Option to change sum assured*
PNB MetLife Guaranteed Future Plan
  1. Guaranteed Benefits
  2. Flexibility to choose benefits
  3. Guaranteed additions & Boosters to boost your corpus
  4. Higher Premium Rewards
  5. Life Cover for entire policy term
PNB MetLife Guaranteed Savings Plan
  1. Guaranteed additions on cumulative premiums
  2. Guaranteed sum assured on maturity
  3. Life cover for the entire policy term
PNB MetLife Guaranteed Income Plan
  1. Guaranteed* returns
  2. Discount  on higher sum assured
  3. Survival and maturity benefits
  4. Tax benefits**
PNB MetLife Super Saver Plan
  1. Growth with Capital Protection 
  2. Liquidity through Cash Bonuses  
  3. Waiver of premium on Death or Critical llness
  4. Protect your family’s future
PNB MetLife Endowment Savings Plan Plus
  1. Protect your family’s future
  2. Additional bonuses from 1st policy year
  3. Waiver of premium against 35 critical illnesses
  4. Life Cover for entire policy term
PNB MetLife Bachat Yojana
  1. Reasonable Premiums
  2. Long Term Savings
  3. Financial Security
PNB MetLife Mera Wealth Plan
  1. Create your own wealth plan 
  2. Enhance your investments
  3. Protect your loved ones
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Long Term Savings

In order to achieve financial goals actively, you should opt for a life insurance policy that provides much more than protection. PNB MetLife’s Savings plans have the potential to accumulate wealth that can help you achieve your financial goals and secure your future. We offer a plethora of plans like an endowment plan or a money back plan to cater to your diverse savings needs with attractive features and benefits while securing you from troubles of a rainy day. So while you enhance the habit of saving, we will shower you with tons of benefits!

What is a Long Term Savings Plan?
A savings plan is essentially a life insurance scheme that offers you much more than a protective life cover alone. In return for purchasing a savings plan, you’ll need to pay premiums to the service provider on pre-decided intervals. Premium payments can be made on a monthly, quarterly, half-yearly, or annual basis. Savings plans offer the double advantage of investment and insurance rolled into one customer-centric scheme, so you can qualify for a host of benefits, depending on the plan you choose to invest in.


Benefits of Long Term Savings Plan
The benefits of savings plans are many and varied. Typically, they depend on the kind of plan you purchase. However, irrespective of the specific terms, all savings plans offer the following advantages.

 

Financial life protection: Savings plans offer a protective financial cover over the life of the policyholder. In the event of the insured’s death, their nominee or legal heir receive the sum assured by the plan.


Financial growth: In addition to life protection, savings plans also offer the benefit of financial growth. By investing your money in a savings investment scheme, you can watch it grow several times over the term of the policy. It’s a safe way to practice disciplined savings, so your wealth increases by the time your policy matures.


Other benefits offered by savings plans depend on the specific features of the scheme you opt for. Based on your choice, you can enjoy benefits such as a regular monthly income, build-up options, increasing annual income, loyalty additions, and a dependable strategy to save for your child’s future.


Important features of Long Term Savings Plans
The features of your savings plan depend on the kind of scheme chosen. Across a broad spectrum, however, here are the essential features of savings plans.


Eligibility criteria: All savings plans have certain eligibility criteria that you need to meet if you want to invest in the policy. For instance, there’s a minimum age you need to attain to be eligible to purchase a savings plan. Similarly, there’s also an upper age limit beyond which you will be ineligible to invest in one.


Premium payments: In order to invest in a savings plan, you are required to pay regular payments to the financial institution from whom you’ve purchased the plan. These payments are known as premiums, and they’re a common feature across all savings plans. By paying premiums regularly, your plan remains active and you continue to be eligible for the benefits under the plan.


Death benefits: Savings plans also have another common feature – death benefits. This is a term that essentially refers to the lump sum money paid out to the nominees or legal heirs in the event of the policyholder’s death. Death benefits generally include a basic sum assured, over and above which bonus or additional payments may be made.


Maturity benefits: In case you, as the policyholder, survive the term of the policy, savings plans offer financial benefits in the form of maturity payouts. Also known as survival benefits, the fund value or the basic sum assured will be paid out, along with loyalty additions, bonuses, guaranteed additions, or other extra amounts, depending on the terms of the plan.


Flexible premium schedules: Another common feature of savings plans is the flexible schedule options they offer for paying your premiums. You can choose to invest in plans that allow you to pay premiums on a monthly basis, or you could opt for plans that require annual premium payments. Additionally, there are also savings investment plans that require quarterly or semi-annual premium payments.


Multiple premium payment modes: Much like how premiums can be paid in different intervals, you can also use various modes to make the payments. If you prefer online transactions, premiums can be paid using internet banking to transfer the funds to the service provider. The insurer’s web portal may also allow you to make premium payments. Offline, your payment choices include demand drafts, checks, and bank challans.


Long Term Savings Plan for your family
Savings plans are beneficial not only to the investor, but also to the insured person’s family. Firstly, in case the policyholder does not survive the policy term and passes away before the plan reaches maturity, a death benefit is paid to the nominee. This is a lump sum amount that can help the surviving members of the family deal with any financial emergencies following the policyholder’s death. It also allows them to pay for essential outlays like education expenses, medical costs, and everyday requirements. Secondly, there are also several savings plans that are tailored to meet specific needs of your family, such as college expenses for your kids and wedding costs. By investing in these savings plans, your family can meet these major expenses without any significant distress.


Why should you get a Long Term Savings Plan?

There’s more than reason for investing in a savings plan. Right from death benefits to the option to enjoy a steady stream of income, these investment plans give the policyholder a string of benefits. Here’s a quick look at the most compelling reasons to get a savings plan.

  • You enjoy a protective life cover that can benefit your family in case of your unfortunate demise.
  • It helps you save money systematically and in a disciplined manner.
  • Savings plan can hedge your investment against market fluctuations, to a certain extent.
  • They offer you maturity benefits if you survive the term of the plan.
  • A savings plan is a tax saving option that allows you to deduct the premium paid from your total taxable income, thus reducing your tax liability.
  • It also offers you a host of other advantages such as protection of your child’s future, a steady stream of monthly or annual income, bonus and loyalty additions, and financial aid in case you’re diagnosed with a critical illness or suffer from an accident.


How to choose the perfect Long Term Savings Plan

Choosing the right savings plan is highly important, since it determines whether or not you equip yourself to achieve your financial goals and how quickly you achieve them. So, to choose the perfect savings plan, here’s what you need to do.

  • Step 1: Identify your financial goals. Do you want to invest in a savings plan to pay for your child’s education? Do you intend to secure the future of your family after you’re gone? Would you prefer a financial arrangement where you receive a regular income after a few years of investing in a plan? Answer questions related to your financial objectives, so you can understand where you want to be headed.

  • Step 2: Compare various savings plan options available. You can do this by visiting the online portals of financial institutions that offer these plans. Alternatively, you could reach out to a third-party agent employed by these service providers and discuss your options. Remember to learn all about the many features and benefits of the many savings plans you’re considering.

  • Step 3: Once you’ve identified the plans that can help you meet your short-term or long-term financial goals, check if you meet the eligibility criteria, ensure that you’re comfortable with the premium payment schedule and the amount of premium payable, and invest in the plan that best aligns with your financial objectives.


What to consider before buying Long Term Savings Plan
Investing in a savings 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 plan.

  • Does the plan offer financial benefits that will help you meet your goals?
  • Do you have sufficient earning capacity to continue to pay the premium required throughout the term of the plan?
  • Are you within the age gap specified in the eligibility criteria?
  • Do you understand the terms and features of the 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 plan, are the maturity benefits sufficient to help you meet your goals for retirement?


Calculating savings plan premium

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 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.


Why should you buy a Long Term Savings Plan online?
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.


Documents needed to buy Long Term Savings Plan

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 plan.

  • PAN card
  • Aadhar 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 plan online, you’ll need a soft copy of these proofs.


Why choose PNB MetLife for buying a Long Term Savings Plans?
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 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.

 
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FAQ Long Term Savings Plans

What is a Long Term Savings Plan?

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 plan, you need to ensure that you choose the right option. Your savings plan needs to align with your financial goals. So, take a look at the various different kinds of 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 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 an 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 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.