Saving Plan

Empower your future today with Pramerica Life Insurance and Saving Plans. Find out all you need to know about best saving plans in India.

  • ‌ 99.06% claim settlement ratio*

  • ‌ 5.2 million lives secured^

What is a saving plan?

To effectively cope with any financial emergency or crisis, it is crucial to have a strong financial foundation in life. In such scenarios, saving plans act as a saviour and offer an excellent opportunity to have the necessary financial resources. Savings plans help individuals fulfil their short-term and long-term financial goals effectively.

Good savings plans are effective tools for wealth accumulation, alongside insurance coverage. Furthermore, they function as income plans, offering a minimum guaranteed maturity value or money-back options in the form of monthly or lump sum payouts, depending upon the different needs of individuals.

Additionally, in the unfortunate event of the insured's death during the policy term, insurance savings plan provides a death benefit to the designated beneficiary of the policy, offering financial protection and support to your loved ones in your absence. Saving plans help meet financial needs according to the individual's risk appetite and suitability and are considered low-risk financial instruments that offer good returns.

best saving plan

Explore our wide range of best money saving plans

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Pramerica Life
Guaranteed Return on Wealth
  • Guaranteed benefits throughout the policy term
  • Choice of four plan options as per need
  • Various income options available
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Pramerica Life
Smart Income
  • Guaranteed annual income equal to premium paying term
  • Choose from various Premium Payment Term and Policy term options
  • Avail loan against policy
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Pramerica Life
Smart Assure
  • Protection against unfortunate events to secure your family when you are not around
  • Maturity additions to augment the death/maturity benefit
  • Option to pay premium for limited or regular period
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Pramerica Life
Magnum Assure
  • Guaranteed Monthly Income for duration equal to Payout period
  • Flexibility to avail loan against your Policy
  • Tax Benefits and the benefits received as per the prevailing tax laws
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Why do you need a saving plan?

Savings plays a critical role in everyone’s lives, irrespective of their income, standard of living and life stage. The savings approach and amount may vary. An appropriate saving plans can make a significant difference in your financial planning. Following are some of the reasons to start your saving.

1. Acts as your contingency plan
If you are saving in a planned and a disciplined manner, you are preparing a cushion for your difficult times. In case of contingencies or unfortunate events, savings can help you to overcome any kind of financial difficulty.

2. Offers secure future
You may have some goals in life that will be directly related to your financial health. If you are planning to purchase a big house or buy a car, it will depend upon the amount of money that you have presently along with your future savings. Additionally, substantial amount of savings can help you to pay for your child’s education and bright future. Hence, to fulfil your goals on time and indulge in a peaceful life, opt for a savings plan now.

3. Caters short-term goals
Savings can be viewed with the perspective of both, short term goals and long term goals. Not only in the long run, savings are beneficial in the short term as well. For instance, if you have a short term travel plan, saving for a few months can help you to fulfil your travel goals and make memories.

4. Offers peace of mind
Having a substantial amount of savings always offers peace of mind along with the strength to sail through tough times. Good savings accumulation is directly proportional to a stress-free life from a financial perspective.

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Features of saving plans

Saving plans are designed to ensure financial security by offering guaranteed returns. However, the selection criteria may vary from one individual to another. Therefore, it is crucial to understand the features of a savings plan.

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Life Cover

Saving plans offer life coverage applicable for the entire policy duration, ensuring a death benefit or sum assured for designated beneficiaries in case of the policyholder's untimely demise.

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Supplementary Income

Some saving plans, known as monthly income plans, provide maturity benefits in the form of regular payouts. After the policy term is completed, these plans offer a steady income stream to the policyholder. These payments are periodic and provided on a monthly basis, allowing individuals to maintain their standard of living and meet financial obligations.

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In-Built Cover Options

When choosing your saving plans, you can opt for additional in-built covers, commonly referred to as riders. These options offer extra coverage and benefits tailored to individual needs and preferences. Common riders include waiver of premium, critical illness, disability, and accidental death benefit, enhancing overall protection and customisation.

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Guaranteed Returns

Certain saving plans provide guaranteed returns, which are added to the maturity value, making them predictable and secure.

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Withdrawal Options and Boosters

Some saving plans offer multiple withdrawal options, proving beneficial in contingencies. Along with flexibility, these plans allow partial withdrawals or loans against accumulated savings. This minimizes the need to surrender the policy and helps address emergencies or unexpected expenses effectively.

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Tax Savings

In addition to the above benefits, saving plans also offer tax benefits. Investments made in saving schemes and plans are deductible under Section 80C of the Income Tax Act, 1961.

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Retirement Benefit

An effective saving plan helps build a sufficient financial corpus for the policyholder even after retirement. By accumulating small amounts at regular intervals, one can have a substantial sum at retirement.

Types of saving plans in India

In India, life insurance companies generally offer three types of saving plans: ULIP, money-back plans, and endowment plans. However, each saving plan operates differently, allowing you to choose a plan based on your financial goals and risk appetite.

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Endowment Plans

Endowment plans help policyholders save regularly over a specified period. These plans combine life insurance and saving elements, providing a lump-sum maturity amount to the policyholder if they survive the policy term. Endowment plans come in two types: with profit and without profit. In the former, the insurance company pays a portion of the profits earned from fund investments, while in the latter, chances of receiving higher returns are minimal, but premiums are lower compared to with-profit plans.

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Money back plans

Similar to endowment plans, money-back plans also combine saving and life insurance, paying sums at periodic intervals. These plans offer flexibility for policyholders to use their savings.

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Unit Linked Insurance Plans (ULIP)

ULIP is an insurance plan offering the dual benefit of investment and life cover. These benefits help achieve long-term goals and provide financial protection in case of unfortunate events.

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Monthly Income Plans

Monthly income plans provide a steady stream of income regularly through the accumulation of funds. A fixed amount is invested over a specified period, growing over time. When the plan matures, you receive a monthly income for a predetermined period.

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National Savings Certificate (NSC)

NSC is an investment-cum-savings plan designed to offer fixed returns to conservative investors, involving an initial short-term investment.

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National Savings Scheme (NSS)

National savings schemes aim to help individuals build a substantial corpus in the long run. These centrally-backed schemes are a safe option.

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Public Provident Fund (PPF)

PPF is a long-term investment scheme helping individuals create a financial corpus for their retirement, with a lock-in period of 15 years.

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Post Office Savings Scheme

Post Office Savings Schemes are government-backed saving plans, offering reasonable returns with capital protection, making them less risky compared to other options.

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Senior Citizen Savings Scheme (SCSS)

SCSS provides regular income to senior citizens and is indifferent to market fluctuations. Anyone can invest in this scheme, including individuals above the age of 55 years, provided they have retired on superannuation or opted for Voluntary Retirement Scheme.

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Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana, launched by the Government of India, aims to support the education and other relevant expenses of girl children.

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Atal Pension Yojana

Atal Pension Yojana is designed to cater to the retirement phase of individuals, reducing financial burden by encouraging early savings. The pension amount is directly proportional to the monthly contributions made in the scheme.

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Employee Provident Fund (EPF)

Under the Employee Provident Fund scheme, both the employer and employee contribute 12% of the employee's basic salary and dearness allowance towards the EPF.

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National Pension System (NPS)

In the National Pension System, subscribers can contribute any amount per year with no minimum contribution limit.

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Kisan Vikas Patra

Kisan Vikas Patra aims to encourage people to mobilize savings and make long-term investments while instilling the habit of formulating effective saving plans in the long run.

Why should you buy a saving plan?

As soon as you start earning, it is advisable to purchase an effective savings plan. The earlier, the better. Early investments provide a longer period for your money to grow, ultimately helping you build a substantial financial corpus when needed.

  • 1
    Power of compounding

    Be a smart investor and make wise decisions. To harness the power of compounding, it's advisable to start your investments at an early age by purchasing a savings plan. In simple terms, compounding enables your invested money to grow over time. The longer your money stays invested, the greater the potential to build a financial corpus. Starting your journey at an early age allows you to take advantage of the compounding effect, further increasing savings over the long term.

  • 2
    Inculcating the Habit of Saving

    Savings plans are essential tools for instilling the habit of saving in an individual. Gradually, they help establish a systematic savings approach. Saving plans serve a dual purpose of meeting unexpected expenses and planning for a stress-free future and comfortable retirement.

How to choose the best saving plan in India?

One size does not fit all, and insurance products, especially saving plans, require customisation to meet the unique requirements of individuals. The definition of an ideal savings plan depends on the varied needs and objectives of individuals.

someone may need a savings plan to meet their retirement goals, while another person may need it for their child's higher education. Based on these requirements, premiums, desired sum assured, and policy terms may also differ for each case. Always consider the following factors and make an informed decision when selecting your savings plan.

Financial Goals

For selecting any type of insurance product, knowing your financial status and goals is a prerequisite. Once you have a clear picture, analyse your short-term and long-term goals, as they define your investment in your saving plans. Based on your financial goals, decide on the overall fund size required to fulfil your goals.

Policy Tenure

Another important factor to consider is the policy tenure. The choice of policy tenure can significantly impact the effectiveness of your savings plan in achieving your financial goals. Additionally, it plays a critical role in aligning your savings plan with financial goals, risk tolerance, and liquidity needs.

In-Built Covers

With additional in-built covers available, select the appropriate ones to achieve your milestones successfully. These riders may vary depending on your situation. For instance, for securing your child's future, you may need to select different riders compared to those chosen for sending your child abroad for higher education. It is advisable to carefully assess your needs and make an informed decision.

Risk Appetite

Analyse your risk appetite and opt for the most suitable savings plan. Carefully understand your financial needs and assess the level of risk you are willing to take. With the right payout option and careful risk assessment, you can choose the right savings plan for you.

Premium Frequency

Several insurance products are designed to offer multiple premium payment options. This allows you to pay your premium according to your financial situation and overall status. You may choose to pay a monthly premium or pay for a limited period. Your financial capabilities are an effective parameter to decide your payment frequency.

Compare Saving Plans

Before finalizing a savings plan for yourself, always make an effective comparison between different plans and premiums available in the market. For better assistance, you can use a savings calculator. Additionally, compare the relevant features and benefits available with different plans.

What factors affect the premium of a saving insurance plan?

1. Age
Age is a crucial factor that determines your premium amount in your policy. Regardless of the type of insurance, you need to pay the mortality premium. Starting early with your savings plan allows you to pay a lower premium due to the lower mortality risk. However, as you age, mortality chances increase, leading to a simultaneous increase in the premium. Naturally, older individuals are more prone to critical illnesses compared to younger ones.
The policy term is directly proportional to the premium. Opting for a longer policy term means you need to pay a higher premium due to the increased chances of insurance claims. If you plan to make premium payments until your retirement and achieve the desired sum assured to meet your life needs, you can consider options like a regular income plan. Additionally, you may explore money-back plans that pay instalments at regular intervals.
Your premium depends on your medical history and family-related diseases. The policy premium increases for potential illnesses. It's advisable to be transparent about your medical condition to avoid rejections or miscommunications. Lifestyle habits also significantly impact the premium you pay. For example, smoking is linked to respiratory illnesses, while heavy drinking can cause heart and liver ailments. In both cases, life expectancy is expected to decrease, leading to a higher mortality rate and, consequently, a higher premium for your policy.
Some occupations may directly impact your premium amount. Individuals engaged in risky or labour-intensive jobs, such as healthcare workers or firefighters, may have to pay higher premiums. To ensure you have adequate coverage, it's essential to be transparent about your profession. Clarity about your job helps you obtain the right coverage to protect yourself and your loved ones.
Riders are additional benefits related to your policy. Opting for riders like accidental death benefits with your savings plan results in an additional cost that can affect your overall premium. Therefore, choose your riders carefully, as they can lead to a higher overall premium amount.

Why should you choose saving plans by Pramerica Life Insurance?

Choice of premium payment and policy term

With our diverse plans, you can choose different combinations of policy terms and premiums. We offer a wide range of products that can be customised to meet the different needs and preferences of our customers.

Tax Benefits

We offer various saving plans that often come with attractive tax benefits. These benefits may vary depending on local tax regulations.

Transparent and Fair Practices

At Pramerica Life Insurance, we follow fair and transparent practices that help our customers make informed decisions. We strive to ensure that our customers receive clear and prompt information that promotes trust and transparency.

A knowledgeable you is an informed you

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Why choose Pramerica Life Insurance

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99.06% Claim Settlement Ratio

Individual death claims settled and reported in public disclosures for FY 2023-24

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137 Branches PAN India

As reported in Annual Report for FY 2023-24

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Over 5.2 Million Lives Secured

As on September 2023

Frequently asked questions

What is a saving plan?
A savings plan may vary from individual to individual depending on their returns, risk appetite, financial goals, and investment plan horizon. If you are young and seeking opportunities, you may opt for ULIPs. Alternatively, if you are looking for capital protection, then traditional insurance plans are suitable for you.

a. Policy Form

  This form includes all fields related to policy information. When purchasing your monthly savings plan, you need to fill in all details such as personal, medical, and financial.

b. Proof of Address

  Any government-issued document that serves as an address proof is required. Documents such as Aadhar cards, driver's licenses, passports, and electricity bills are a few examples that can be submitted as address proof.

c. Proof of Income

  Income is one of the crucial factors to consider before purchasing your savings plan. Hence, the individual needs to produce documents that prove they have sufficient income to pay the premium for the savings plan.

d. Proof of Identity

  Government-issued documents such as driver's licenses, Aadhar cards, PAN cards, and Voter IDs can be used and presented to establish your identity for purchasing your savings plan.

e. Proof of Age

  Proof of age is a must for your savings plan purchase. Documents such as 10th and 12th-grade mark sheets can be used for buying a savings plan.

When it comes to your investment plan, starting early is always preferred. With an early start, you can witness significant appreciation in capital. Smaller invested amounts also yield substantial returns in the long term due to compounding.
Saving plans are known for helping us fulfil our financial goals. Effective saving plans serve the purpose of growing wealth while providing appropriate life cover. They are also beneficial for tax planning. The premiums of savings cum protection plans come with a tax benefit under Section 80C of the Income Tax Act. Moreover, the death benefit offered by the policy upon the death of the policyholder is tax-free under Section 10(10D).
Savings plans help build wealth over time against the investment plans that you make over time. They are also helpful in building an education fund for your child. Pramerica Life Insurance offers the best saving plans for children, easing the stress of planning your child's future.
Saving and investing are two different aspects of financial planning. Saving involves setting money aside for emergencies or significant purchases. Investing is about multiplying or growing your money through saving plans or other assets. Choosing the right savings plan will help you achieve your investment goals, such as a child's higher education or marriage, retirement, or buying a new house. Whatever your requirement, you can fulfil it by making the right saving choices.
Saving plays a crucial role at every age, and the amount you save may vary based on several factors. These factors include your daily expenses, short-term and long-term goals, existing liabilities or debts, and more. However, a common rule that can be helpful is saving 20% of your income. This will help you be prepared for the future and be ready to handle contingencies.
Disclaimers:
*For FY’22-23 Individual death claims settled and reported in public disclosures for FY 2022-2023
^ As on 31st September 2023