With an assured savings plan, you get the twin components of saving and insurance. However, did you know that you can also use the same plan for wealth accumulation? In fact, it would not be a stretch to call wealth building one of the benefits of an assured savings plan. So, if you are wondering how this plan can help you with that, then here’s showing you the way.
- Do not discontinue before the term
When you invest in Kotak Assured Savings Plan, you are allowed to discontinue your policy before the term ends. The amount that you will receive in this case is the surrender value of the savings plan. However, you will only get the amount after the policy continues for three years.
Now, life is unpredictable, and you never know what comes up to make you surrender the policy. However, try not to discontinue the policy before the term and certainly not before three years. You can accumulate greater wealth by letting the policy continue and complete its term.
- Decide on the term of the policy
Make sure to invest in Kotak Assured Savings Plan with a plan in mind. Maybe you want to buy a house in ten years or pay for your kid’s higher education in fifteen years. So, with that in mind, you need to set the policy term. The beauty of an assured saving plan is that it lets you save towards a goal.
When you have that focus in mind, saving up becomes a lot easier. So, you can build long-term wealth by choosing the right policy term.
- Revive your discontinued policy
As mentioned before, discontinuing your policy is not a good idea. But the good news is that you can revive the policy if you did not discontinue it before three years. The guidelines for this vary from one policy to another. Thus, it is important to talk to your insurance company to know the rules in detail.
The facility to revive your policy is like picking up from where you left off. It gets you a second chance at wealth building, which is highly beneficial.
- Making the most of tax benefits
When you are choosing a plan to invest in for building wealth on a long-term basis, the tax benefits are one of the first things you take a look at. After all, it is a major aid in your aim to build wealth. According to Section 80C, 1961, all the premiums paid for a Savings Plan receive tax exemptions up to ₹1.5 Lakh. The maturity and death benefits under the plan also get tax deductions under Section 10 (10D).
- Wealth accumulation is assured
With an assured savings plan, even your wealth accumulation is guaranteed. Usually, you need to pay charges when you miss insurance payments. With an assured savings plan, you can stop paying the premium after three years, and the insurance company considers that the premiums are paid fully. You will still get the final amount and the added interest as per the premiums you paid for the three years.
So, if wealth building is the aim, then buy an assured savings plan right away. You will also get the much-needed insurance component with it.
Visit here to know more about Kotak Assured Savings Plan: https://www.kotaklife.com/insurance-plans/savings-and-investments-plans/kotak-assured-savings-plan
