Savings Plan

Saving schemes or plans are an important part of financial planning and long-term financial stability. Additionally, investing in the suitable saving plan is essential for medical emergencies, post-retirement years, marriage, education, or rainy days....Read More

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: In Unit Linked Policies, the investment Risk in the investment portfolio is borne by the policyholder.

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What is Savings Plan?

Even as a child, our parents never stopped teaching us the value of having a long term savings plan. You may remember how, as a child, the best saving plan for you was to collect any spare change in the piggy bank.

Even while growing up, our parents would continuously emphasize on the merits of saving money for the rainy days. The underlying reason behind all these habits is the importance of having disciplined savings throughout life. Saving & Investment Plans can help you get onboard the savings train by building a corpus, create a stable source income, and secure the financial future of your loved ones, even in your absence.

Why Do You Need Savings Plan?

Most of us think of money as something that should be preserved for the future, and there is appropriate reasoning behind this thinking. Generally, the Indian population places a high value on security, which is why it makes sense that we begin saving money now to plan for financial stability and security in the future.

A reliable way to do that is by putting your money into saving schemes. The saving plan in India will help you cover everything, including financial and medical emergencies and post-retirement life. It can serve as the foundation of your future, if you invest in the best saving scheme and help you achieve true long-term stability.

Furthermore, you may need a financial contingency plan more than the next person unless you work for the government. Since the job market today is volatile, the reassurance of a savings plan can make a significant difference in your financial planning.

Importance of buying a Saving Plan

While some of your objectives may depend on your abilities rather than financial resources, others need the support of sufficient funds. For example, the best savings plan can help you provide for your child’s higher education or marriage expenses.

Here are a few additional reasons why it's important to focus on savings scheme:

1. Systematic Savings

Aside from the substantial returns, one of the essential advantages of a savings plan is that it instils in a person the discipline of saving. The best saving scheme helps people to develop a habit of saving, specifically, a practice of systematic and disciplined saving.

2. Flexibility

Everyone is unique and has their own set of goals and aspirations. As a result, while selecting the best savings scheme, you must consider the flexibility of a savings plan and select a tailored plan based on an individual's future goals and risk tolerance.

3. Liquidity

In the event of an emergency, regardless of the premium-payment or policy duration, you can withdraw funds totally or partially from your savings scheme after the five-year lock-in period. This may depend on the specific policy terms and conditions, so remember to check it before purchasing a savings scheme.

How to Choose the Best Saving Plan?

To choose one of the best saving insurance plans in India, it is advisable that you first identify your goals – both short and long-term, while keeping in mind your current liabilities, savings, and family’s financial requirements.

Here are a few things that will help you compare and choose the best saving plan for your loved ones –

Review and compare different plan features and benefits to choosing one that aligns with your future needs
Check whether the savings plans offer flexibility to withdraw money in case of any emergency needs
Look for different rider options to avail of additional benefits and maximize policy coverage
Use a savings and income calculator to determine the ideal coverage and premium payable towards the savings plan

How to buy Savings Plan in India?

Investing your money in a savings scheme is only the first step toward a prosperous future. The second but equally important factor in determining the success of your investment and financial goals is proper savings planning. It can be difficult to choose the right long-term savings scheme.
However, if you know what you want, finding the best savings plan in India becomes easier:

1. Online Availability

Online savings schemes have simplified investments considerably, especially for the modern investor. It is time-saving, seamless and allows you to find the relevant information with just a few clicks. You can also manage your money better by keeping track of the savings scheme online.

2. Tax Saving Opportunities

When it comes to long-term investments like saving schemes, your tax-saving position is also crucial, as tax responsibilities can eat into your return. In your long-term savings plan, you should aim for investments and maturity value that allows tax deductions or exemptions. Tax benefits are as per prevailing tax laws subject to change.

3. Investment Terms

The investment terms of the savings scheme make it effective regardless of your income frequency. You should look for a favourable investment period and mode (monthly, quarterly, half-yearly or annually) to put your money in the best saving plan in India.

Why Choose a Savings Plan by Max Life Insurance?

Max Life Insurance offers a variety of savings schemes with comprehensive protection and wealth-growth opportunities. Whether you are looking for the best savings plan in India to finance your long-term or short-term goals, you can find a policy suitable to your needs.

The plans are specifically designed to help you deal with life’s uncertainties by keeping a disciplined savings habit. Besides, you can plan for milestone events in life with the help of the best savings schemes while enjoying the life cover.

Most importantly, since each individual has unique financial needs, there are savings schemes with varying features which can suit individual needs more appropriately.

How Long Should You Invest in a Savings Plan?

The duration of your investment in a savings scheme would depend on the objective behind the investment – whether it is to fulfil long-term or short-term financial goals. Consider what you are investing for and how liquid or accessible you need your money before deciding on a short- or long-term investment.

Establishing a timeline can be useful in this process. For example, a savings scheme to fund your child’s higher education, a dream trip to another country, or simply save up for retirement.

Factors Affecting Savings Plan Premium

You have the option of paying premiums for your savings scheme over time or all at once, depending on the policy terms. These options are available to make the savings scheme more aligned with the diverse financial profiles of policy buyers.
Some factors affect the premium rate of a savings scheme that you should know:

1. Policy Duration

The policy duration of your savings plan affects the premium rates of the savings scheme, depending on whether they are short-term or long-term.

2. Nature of Income Source

Insurers will inquire about your job history when you apply for life insurance. If you work in a job that exposes you to greater risks, your savings scheme premiums may be higher since it also includes life security.

3. Investment Goals

An investor chooses the best saving scheme, depending on the purpose behind the investment. This also means the premium rates for the savings scheme will be affected by it.

4. Health History

Insurance providers may need a medical exam and access to your medical data. Your premiums are likely to rise if you have a history of medical issues, particularly major ones like heart disease or cancer.

Benefits of Savings Insurance Plan

Saving insurance plans in India offer the following benefits:

1. Long term wealth accumulation
1. Financial protection throughout the life
1. Guaranteed payouts to support your life goals
1. Tax saving benefits⁴
1. Life insurance protection for family

Features of Saving Insurance Plans

Saving plans offer a variety of features that can help you fulfil your goals. Here are some highlights of saving plans that you must consider before choosing the right savings plan for your family:

1. Entry Age and Policy Tenure

Saving Plans usually offer a wider entry age bracket while providing options to customise the investment tenure or policy term according to your needs. The entry age helps determine your risk appetite (as the policyholder), which in turn, will help you personalise the savings based on your risk profile.
Furthermore, you can modify the policy term and investment tenure as per plan options (between mid- to long-term investments) to allow accumulation of significant corpus throughout the policy tenure.

2. Life Cover and Rider Options'

By choosing the suitable saving plan for your family, you can leverage the dual benefits of guaranteed benefit and life insurance coverage or market linked return+ life Insurance coverage. You can add different riders or add-ons to avail of more comprehensive policy benefits. These riders, along with the significant life cover help enhance the financial protection under the policy against accidental death, life-threatening ailments, and disability.

3. Tax Benefits

Saving plans also work as excellent tax saving instruments. The premium amount up to Rs. 1.5 lakh that you pay towards most life insurance savings plans is tax-deductible under Section 80C of the Indian Income Tax Act, 1961.
On the other hand, the maturity and death benefits offered under the savings plans are also tax-exempt under Section 10(10D) of the Indian Income Tax Act, 1961, thus, helping to maximise your tax savings.
Tax benefits as pre prevailing tax laws subject to change.

Types of Savings plans

Different types of savings and income plans include:

Monthly Income Plans

Money-Back Plans

Endowment Plans

Unit Linked Insurance Plan (ULIPs)

National Savings Certificate (NSC)

National Savings Scheme (NSS)

Public Provident Fund (PPF)

Post Office Savings Scheme

Senior Citizen Savings Scheme (SCSS)

Sukanya Samriddhi Yojana (SSY)

Atal Pension Yojana

Employee Provident Fund (EPF)

National Pension System (NPS)

Kisan Vikas Patra

Which Max Life Savings Insurance Plans Might Suit You?

At Max Life Insurance, you can choose from the following savings and income insurance plans:

1. Max Life Savings Advantage Plan

(A Non-Linked Participating Individual Life Insurance Savings Plan, UIN: 104N111V02) helps accelerate the growth of disciplined savings so that you can build a substantial corpus to support your life goals. At the same time, the plan provides life insurance protection to your loved ones against all contingencies.

Max Life Savings Advantage Plan offers the following features and benefits –

Flexible-Premium Payment Tenure and Policy Term
Partly guaranteed payment of the lump sum amount on the maturity
Tax savings under Section 80C and Section 10(10D) (as per existing tax laws)
Life insurance protection for your loved ones

2. Max Life Monthly Income Advantage Plan

(A Non-Linked Participating Individual Life Insurance Savings Plan, UIN: 104N091V06) helps keep your family financially secure in the wake of life’s uncertainties. This way, you are not hard-pressed to worry about meeting commitments towards your loved ones.

Max Life Monthly Income Advantage Plan offers the following features and benefits –

Monthly income for up to 30 years after completion of premium payment tenure
Accrued bonuses including Terminal Bonus on maturity
Insurance cover payable to your family as a death benefit in case of your untimely demise

3. Max Life Whole Life Super

(A Non-Linked Participating Individual Life Insurance Savings Plan. UIN - 104N080V04) is the best saving plan to help you build a corpus through systematic investments. You can avail of a life cover under this plan while benefiting from additional company bonuses till you are 100 years old.

Max Life Guaranteed Income Plan offers the following features and benefits –

Life insurance coverage till 110 years of age
Guaranteed payouts upon maturity with company bonuses
Flexibility to withdraw money

4. Max Life Assured Wealth Plan

(A Non-Linked Non Participating Individual Life Insurance Savings Plan UIN: 104N096V04) is a savings and income plan that can help you support your life goals financially. Be it retirement, or supporting your child’s higher education, the plan will provide guaranteed assurance.

Max Life Assured Wealth Plan offers the following features and benefits –

Guaranteed lump sum benefit payout upon maturity
Flexible Policy Term and Premium Payment Options
Immediate payment of lumpsum death upon the demise of the life insured

Note: Guaranteed or non-guaranteed benefits are applicable only if all due premiums are paid.

Savings Plan - FAQs

By the age of 25 years, you must try to save up to 25% per cent^[1] of your gross income (before taxes and deductions). For example, if you are earning Rs. 5 lakh per annum by the age of 25, you must save up to Rs. 1.25 lakh in savings each year, which can be used to invest in different savings plans based on your preferences and requirements.

Ideally, an average person must try to save as much as their age. In other words, individuals must save the same percentage of their gross annual income as their age – a 25-year-old working professional must save at least 25% of his or her yearly salary, while a 40-year-old must save at least 40% of his or her income.

As your age increases, you must work towards increasing your savings, so that you have adequate financial backup to support your life goals and suffice your life after retirement.

As a working professional, it is crucial that you balance your savings and investments. At the same time, you may choose to invest in a savings plan that offers both insurance cover and market-linked returns on investments or guaranteed return. At the same time, you must have enough savings to manage any emergencies and pay for short-term goals.

Ideally, you must have between three to 12 months of income as savings before you venture out to invest in higher-risk financial instruments.

You can choose from the different savings Insurance plans available by comparing their features, benefits, year-on-year returns, and your financial risk appetite. Accordingly, you can select the best savings plan that aligns with your goals and premium payment capabilities.

You must keep the following points in mind while choosing the best saving plan for your family

a. Segregate your goals into short-term and long-term

b. Determine your total spending and savings (after considering all exiting expenses and debts)

c. Review and compare different savings plans available online

d. Choose a savings plan that offers maximal life insurance protection in term of lumpsum Sum Assured

e. Review the year-on-year performance of the savings plan to determine how returns are accrued on the same

Savings plans are mostly financial instruments that help you secure your long-term and short-term goals financially. You invest a certain amount towards a savings plan, which is then allocated into different money-market instruments to earn returns and grow your savings corpus.

Savings and income insurance plans from Max Life Insurance are life insurance products that provide opportunities to grow your savings through market-linked returns while protecting your loved ones against life’s uncertainties with insurance protection.

Savings and income plans offer significant tax saving benefits⁴ under Section 80C of the Income Tax Act 1961. Accordingly, the premium amount that you pay towards the saving plan is eligible for deduction from your total taxable income, up to Rs. 1.5 lakh.

In other words, you can reduce your total taxable salary by up to Rs 1.5 lakh that you invest as premium towards a savings plan.

Purchasing a savings plan is the right decision for you if you are a:

a. Young investor

b. Recently married

c. Young parent with children

d. Nearing retirement

Here is how you can start on your journey of long term financial security with a savings plan:

a. Review and compare the features and benefits of different savings Insurance plans available online

b. Opt for the maximum policy tenure and policy benefits based on your requirements

c. Set up automatic premium payments using the ECS (Electronic Clearing Service)

d. Establish savings buckets depending upon your goals and investment tenures

Partial withdrawal is the feature offered in some savings schemes, where the investor can encash/withdraw any part of the fund during the policy term. This feature is available as policy terms and conditions.

Long-term investments allow you to expand your portfolio and achieve your objectives over several years. Short-term investments are intended for goals with shorter timelines, giving the investor access to the funds sooner. You can choose the savings scheme with a duration, depending on the timeline of expected returns.

If you are looking for savings scheme that can help you with immediate financial challenges, going for short-term plans can be helpful. Although, short-term savings schemes normally provide return over time, they are highly liquid investments that allow investors to make money rapidly if needed.

Some of the best saving schemes in India are the Personal Provident Fund(PPF), Senior Citizen Savings Scheme, National Savings Certificate, etc.

The above mentioned name of generic saving plans and saving life insurance plan are assumed examples.

ARN: PCP/SP/020823

^*#Guaranteed benefits are applicable if all due premiums are paid.

Sources:

www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=89

www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=55

www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx

www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=134

www.incometaxindia.gov.in/Pages/tools/deduction-under-section-80c.aspx

www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11865&Mode=0

www.rbi.org.in/Scripts/FAQView.aspx?Id=79

Choose a Max Life Savings & Income Plan

Max Life Smart Wealth Plan
Flexibility to choose from 4 plan options
Guaranteed benefits as lumpsum or as regular income
Guaranteed income for a fixed term of 25 or 30 years with long term income option
Know more
Max Life Savings Advantage Plan
Be flexibile to choose policy duration that matches your life goals
Get lumpsum amount on maturity that is partly guaranteed
Save tax under section 80 C and Section 10(10D) as per prevailing tax laws
Know more
Max Life Monthly Income Advantage Plan
Lumpsum benefit on maturity
Guaranteed monthly income for 10 years after premium payment term
Policy continues for family even in case of death of policyholder
Know more
Max Life Whole Life Super
Get complete protection until the age of 100 years
Preserve a corpus for your family’s secured future
Lumpsum payout at the age of 100 years
Know more
Max Life Assured Wealth Plan
Get guaranteed lump sum maturity benefit to meet your savings goals
Flexible Premium Payment and Policy Term Options to help build wealth by saving systematically
Lump sum death benefit is paid immediately on death of Life Insured
Know more

Check out the different Online Insurance Plans from Max Life!

Max Life Smart Term Plan
Financial protection against serious illnesses such as kidney failure, cancer, and heart attacks
Flexibility to select the best premium payment alternatives based on your income and budget
Having life insurance and the possibility to have the payments repaid as a survival benefit
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Max Life Online Savings Plan
Comprehensive death benefit throughout the duration of the insurance, together with money saving for different life goals
For policyholders, monthly payments, earned bonuses, and customisable fund choices are available with no additional fees
The freedom to select an insurance term of up to 85 years, a term for paying the premiums, and payouts that meet your demands
Know more
Max Life Cancer Insurance Plan
A comprehensive cancer insurance policy that pays out at all stages of the disease
If there are no claims for the first five years, receive a 10% increase in the initial sum insured
20% of the Sum Insured: Early-Stage Diagnosis Premium Waiver
Annual income for five years in main stage diagnosis with lump sum payout
Tax benefit under section 80D, as per prevailing tax laws
Know more
Max Life Smart Wealth Plan
Comprehensive death benefit for your family member(s) in case of your unfortunate demise during policy term
Guaranteed maturity benefits/Income benefit and accrued guaranteed additions to help meet your life goals
Multiple variants - lump sum, short term income, long term income, and whole life income with unique benefits
Know more
Long-Term Income
Guaranteed income benefit for 25 or 30 years after the policy period ends, as per the sub variant selected
Terminal benefit that equals total premiums paid, post completion of the payout period payable to nominee
Two premium payment options - 6 and 10 years to be chosen as per suitability of the plan for your needs
Know more
Term Plan with Return of Income
Option to receive the premiums paid back on successful survival of the insured till end of policy term
Death benefits for your family members in case of any eventuality leading to the loss of your life
Limited pay options to pay for term plans with return of premium – 5 Pay, 10 Pay, 12 Pay, 15 Pay, or 60 Pay
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Max Life Critical Illness and Disability Rider
Option to receive the premiums paid back on successful survival of the insured till end of policy term
Death benefits for your family members in case of any eventuality leading to the loss of your life
Limited pay options to pay for term plans with return of premium – 5 Pay, 10 Pay, 12 Pay, 15 Pay, or 60 Pay
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Max Life Waiver of Premium Plus Rider
Waiver of all future premiums in case of the covered dismemberment so that you can live worry-free
Future premiums waiver in case you suffer from critical illnesses as specified in the rider terms
Continued benefits of the base policy to give you peace of mind about maintaining various life expenses
Know more
Max Life Smart Fixed-return Digital Plan
Returns in just 5 year
Tax-Free^## Fixed Returns up to 6.27%^{^*}
Tax savings up to Rs. 46,800^## u/s 80C
Know more

Customer Reviews

Savings and Income Plan

“I came across Max Life Savings Plan a few years ago when I was researching the market for savings options. I invested in the policy soon after. The plan suits my exact requirements in terms of meeting my savings goals, sufficient life coverage, and maturity benefits.”

Mr. Pal, 35 years

Savings and Income Plan

“My husband had invested in Max Life on the recommendation of his friend. Our family expenses were totally dependent on this insurance fund for several years after his death. I must say that this insurance provided a huge support to my family during the difficult times.”

Mrs. Kapoor, 38 years

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Let us know about your experience or any feedback that might help us serve you better in future.

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Why Choose Max Life

99.51% Claims Paid Percentage

(Source: Individual Death Claim Paid Ratio as per Audited Financials for FY 2022-2023)

269 Offices

(Source : As reported to IRDAI, FY 21-22)

₹1,174,515 Cr. Sum Assured

In force (individual) (Source : Max Life Public disclosure, FY 21-22)

₹1,07,510 Cr. Assets Managed

(Source : Max Life Public disclosure, FY 21-22)

Online Sales Helpline

0124 648 8900(09:00 AM to 09:00 PM Monday to Saturday)
service.helpdesk@maxlifeinsurance.comEmail
SMS ‘LIFE’ to 5616188Message
Let us call you back

Customer Service

1860 120 5577(9:00 AM to 6:00 PM Monday to Saturday)
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Write to usPlease write to us incase of any escalation/feedback/queries.

NRI Helpdesk

011-71025900, 011-61329950(9:00 AM to 6:00 PM Monday to Saturday)
nri.helpdesk@maxlifeinsurance.comPlease write to us incase of any escalation/feedback/queries.

Savings Plan

Maximise Your Savings With Max Life Investment Plans

View in (हिन्दी)

What is Savings Plan?

Why Do You Need Savings Plan?

Importance of buying a Saving Plan

1. Systematic Savings

2. Flexibility

3. Liquidity

How to Choose the Best Saving Plan?

How to buy Savings Plan in India?

1. Online Availability

2. Tax Saving Opportunities

3. Investment Terms

Why Choose a Savings Plan by Max Life Insurance?

How Long Should You Invest in a Savings Plan?

Factors Affecting Savings Plan Premium

1. Policy Duration

2. Nature of Income Source

3. Investment Goals

4. Health History

Benefits of Savings Insurance Plan

Features of Saving Insurance Plans

1. Entry Age and Policy Tenure

2. Life Cover and Rider Options'

3. Tax Benefits

Types of Savings plans

Which Max Life Savings Insurance Plans Might Suit You?

Savings Plan - FAQs

How much should be my expected saving at the age of 25?

How much does the average person have in savings ?

How much money should I save before investing?

Which savings scheme is best?

How to choose the best saving Insurance plan for your needs?

What are saving plans?

How to save tax by using saving insurance plans?

Who should invest in Saving Plans?

How do I get started with a long term saving plan?

What is the Meaning of Partial Withdrawal?

Which Saving Investment is best to start with, long term or short term?

Does Saving Investment Help In Immediate Financial Challenge?

What Are the Best Saving Schemes With High-Interest Rate?

Choose a Max Life Savings & Income Plan

Check out the different Online Insurance Plans from Max Life!

Customer Reviews

Savings and Income Plan

Savings and Income Plan

We would like to hear from you

Related Articles

Features & Benefits of Max Life Smart Wealth Plan for All Age Groups

Difference Between Savings and Investment Plan

Understanding the Difference Between Saving and Investing

Why Choose Max Life

99.51% Claims Paid Percentage

269 Offices

₹1,174,515 Cr. Sum Assured

₹1,07,510 Cr. Assets Managed

Get Tax-Free## Fixed Returnsup to 7.5%*

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