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When discussing investments and savings at work or with friends, you might have heard someone mention u2018insurance savings planu2019. Or, you may have had a financial consultant talk about an offer of such a plan. <br>An insurance savings plan can really prove to be a good addition to your savings and investment portfolio.
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When discussing investments and savings at work or with friends, you might have heard someone mention ‘insurance savings plan’. Or, you may have had a financial consultant talk about an offer of such a plan. An insurance savings plan can really prove to be a good addition to your savings and investment portfolio. Wondering how? Read on to gain a deeper understanding of an insurance savings plan and how it can prove to be helpful for you.
How do insurance savings plans work? • An insurance savings plan helps you build your savings for future life goals. You pay either a single premium or regular premiums over the course of the plan’s payment term and receive a lump sum upon maturity. A good insurance savings plan will offer you capital guaranteed at maturity – this means that at the very minimum, you get back what you have invested. • Insurance savings plans have the potential of growing your money at a much faster rate than a basic bank savings account. Plus, insurance savings plans also come with the added benefit of protection through insurance coverage. These plans pay out a death benefit to the plan’s nominee too if the insured individual passes on. • An insurance savings plan can help you save up for many life goals such as your child’s university fees or your own retirement plans.
What are some features of a good insurance savings plan? • If you are wondering how to select a good insurance savings plan, here are some features to look for – • Flexibility of premiums payments • We each have a different capacity for paying our premiums. Look for a regular savings plan that offers you ample room for customisability for paying your premiums. Insurance providers normally offer you a choice between single premium (paid one time as a lump sum) or regular premiums (paid over the course of a few years). You should also be able to get a good range for tenure of premium payment. This way, you can choose whether you want a relatively short-term plan (around 5 years) or a long commitment (around 20 years or more). • Hassle-free applications • Most insurers will allow you to sign up for coverage without any medical screening. Their entire process of application should be smooth and seamless. You may read customer reviews online to gauge how a particular insurer’s sign-up process works.
Availability of riders • Find an insurer who offers you a wide choice of riders along with your insurance savings plan. It is recommended to consider a rider that waives premiums if you are diagnosed with certain early/intermediate stage illnesses or critical illnesses. This way, your plan stays active even if you cannot make your payments temporarily. • Finally, do make sure to read the plan’s fine print carefully before you sign up for it. Remember that insurance and savings are both long-term commitments; therefore, you would want to be aware of what’s in it for you in the long haul. • We hope that the information given here helps you find the best savings plan in Singapore for your financial goals. • All the best!
