An assured savings plan is an investment option involving less risk than other market-linked products. Continue to read to learn about various additions you can make to your assured plan to increase the chances of wealth creation.
An assured savings plan is a type of life insurance that provides a guaranteed return on the investment made by the policyholder. In such plans, the policyholder pays regular premiums over the policy term, which is typically a minimum of 5 years. These plans have a flexible premium payment option. You can choose to pay the premium monthly, quarterly, or yearly.
The insurer then invests these premiums in a range of financial instruments, such as government bonds, corporate bonds, and equities, to generate returns. Therefore, assured savings plans can be suitable for individuals who want to save money with minimal risk. Moreover, these plans can help achieve specific financial goals, such as children’s education, marriage, or retirement.
You can also make your savings plans more effective by adding certain optional benefits.
Useful Additions to an Assured Savings Plan to Increase Your Wealth
You can add some optional riders to your assured savings plan by paying extra over the base premium. Also known as Value Add-Ons, these riders can help in wealth creation even if the insured person’s family faces some unforeseen circumstances.
- Term Benefit Rider
If the policyholder passes away during the rider term, the rider provides a lump sum payment to the policyholder’s nominee in addition to the death benefit under the base plan.
- Accidental Death Benefit Rider
It is like the term benefit rider except that it provides additional death benefits if the insured person dies in an accident.
- Permanent Disability Benefit Rider
This rider provides an additional benefit to the policyholders if they suffer from total and permanent disability due to an accident.
- Guardian Benefit Rider
If the policyholder passes away, the Guardian Benefit Rider waives off the future premiums for the base policy. The insurer pays the future premium of the plan, ensuring that the policyholder’s family continues to receive the benefits. However, the life insured and the policyholder need to be different people to avail of this benefit.
This rider provides an extra layer of protection for the policyholder’s family by providing a regular income stream in case of the policyholder’s unfortunate demise.
- Accidental Disability Guardian Benefit Rider
It is like the Guardian Benefit Rider except that the benefits are payable if the policyholder becomes disabled due to an accident.
Consider investing in an assured savings plan early in your life. Beginning early can provide you with a longer investment horizon. As a result, your returns can grow exponentially over time, providing you with the maximum advantage of the compounding effect. Secondly, investing in these plans early can help you build a solid financial foundation for your future.
So, include the additional benefits discussed above in your savings plans and start your journey to wealth creation.
