Life insurance savings plans not only provide life insurance coverage but also help you save up for your goals, including vacation planning. Here are some reasons which make them the right choice for vacation planning –
1. Different types of plans for different individuals
There are different types of life insurance savings plans to cater to the different financial needs of individuals. If you are looking for plans that do not have market volatility risks and help you create a stable corpus, you can choose endowment or money-back plans. On the other hand, if you want market-linked returns, ULIPs can be the right choice.
The different types of plans help you choose a plan that best matches your financial strategy, and then create a corpus for travelling.
2. Flexible
You can choose the details of your life insurance policy, like the sum assured, premium paying term, policy term, etc. You can also add optional riders at a nominal additional premium for a wider scope of protection.
This flexibility gives you complete control over how to create a corpus for that much-awaited vacation.
3. Life Insurance protection
Along with helping your to create a corpus for your trip, life insurance savings plans also provide financial protection through insurance coverage. In the case of your untimely demise during the policy tenure, the plan pays a death benefit, which can give your family financial relief during uncertain times. This insurance coverage provides peace of mind and also helps your family meet their financial needs even when you are not around.
4. Added returns
Life insurance savings plans provide added benefits to help your corpus grow. Traditional endowment or money back plans help in enhancing the plan benefits through bonus (if declared) additions, guaranteed* additions, loyalty additions, etc., depending on policy terms and conditions.
5. Tax benefits
Lastly, let’s not forget the tax benefits that you can enjoy with life insurance savings plans. The premiums paid towards the plans qualify for a tax deduction under Section 80C up to ₹1.5 lakhs, in case of old tax regime. The maturity benefit also enjoys tax exemption under Section 10(10D) subject to some terms and conditions.
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