Who Should Invest in Savings Plan?

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Who Should Invest in Savings Plan?

Who Should Invest in Savings Plan?
  • 22nd Jul 2022 |
  • 2,407

A savings plan is one of the safest options to help you save money to fulfil the financial goals of your life. The kind of savings plan that you must use depends on various factors, including:

  • Risk Appetite
  • Financial Goal
  • Time
  • Income etc

Do you wonder who should invest in a savings plan? An individual with an income and a financial goal can use a savings plan to invest and grow their money in the long run. Let’s dig deeper to get an understanding of the savings plan.

Types of Savings Plans

There are four types of savings plans you can use per your preference and future needs.

Endowment Plan

An endowment plan refers to the insurance plan that offers the policyholder or the nominee a lumpsum amount on maturity or on death. It can be used to build a risk-free saving corpus along with providing financial security to the family in case of sudden demise.

Features of Endowment plan

  • Safe investment option with a minimum guaranteed return
  • Bonus addition benefits
  • Life cover and goal protection option

Money-Back Plans

The money-back plan is a type of insurance plan that allows the insured to receive a regular return or a lumpsum amount during the policy interval. The returns here can be guaranteed, depending upon the investment performance, or can be a combination of both.

Features of the money-back plan

  • Safest investment with guaranteed returns
  • Bonus additions payable on maturity
  • Cash flow maintaining option

Unit Linked Insurance Plans (ULIPs)

A Unit Linked Insurance Plan (ULIP) is an insurance plan that offers the dual benefit of investment to meet long-term goals along with a life cover to protect your family in case of an unfortunate event. A part of your premium is contributed towards the life cover, while the other part is invested in the funds of your choice.

Features of ULIP

  • Invest as per your risk appetite
  • Multiple investment options are available
  • Goal protection option available
  • Bonus additions for long-term investors

Retirement or Pension Plans

It is a type of investment plan that helps the policyholder to accumulate part of their savings over the long-term period so that they can stay financially stable. This plan helps you to deal with the post-retirement uncertainties and helps to ensure a stable flow of income after retirement.

It is a type of investment plan that helps the policyholder to accumulate part of their savings over the long-term period so that they can stay financially stable. This plan helps you to deal with the post-retirement uncertainties and helps to ensure a stable flow of income after retirement.

Features of pension plan

  • Long-term safer investment
  • Concerned with generating long-term stable cash flow
  • Bonus additions may be available
  • Life cover option available

A savings plan is beneficial for all those who wish to stay safe and financially sound in the long term. Let’s now understand the situation and which savings plan would be better for the investment - in case you are the head of your family, then you might need savings to meet the following long-term goals:

1. Higher education for children

2. Marriage goals for children

3. Home renovation work

4. Retirement savings for spouse

5. Family vacation goal

To meet these goals, you can either apply for an endowment plan, money-back plan or a ULIP. all these investments offer a safe return.

  • You can even apply for the savings plan in case you want to offer a financial cover to your family even after you. All these plans will provide you with the advantage of keeping your family secured in case of any unexpected events.
  • After your professional life is over, a retirement plan will help you seek a stress-free retirement and a comfortable lifestyle.
  • If you want to build wealth apart from your common financial goals, savings plans can help you do so. ULIPs are the best savings plan that can assist you in building wealth passively.

To get the benefits of your savings plan, it is advisable to start investing as soon as you start earning. You can then choose a savings plan according to your financial need, risk appetite, and investment horizon to achieve specific financial goals and live a stress-free life.

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


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