Savings Plan
A savings plan helps you to save for the short-term and the long-term goals while also providing you with life insurance coverage. By allocating a fixed amount on a monthly or yearly basis to the plan, your money grows in a money-market fund which gives you guaranteed returns. In case of an unexpected event, the plan pays out to your beneficiary. These money-saving plans are the best saving schemes, especially for risk-averse individuals, offering the best fixed returns at maturity.
Kotak Guaranteed Fortune BuilderBestseller
Pay ₹1,00,000 year for 10 years
Get(at the end of 11thyear)
₹1,15,236/year for 25 years
Life cover/death benefit:
₹13,20,000$
Plan Option: Income Only
Kotak Assured Savings Plan
Pay ₹10,000/month for 10 years
Get
₹26,40,213 Lakhsafter 20th year
Death benefit/Life cover upto:
₹26,40,213Lakhs#
Guaranteed@Returns
Amit Rajeis an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimplehas a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user-friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Last updated onOct 21, 2024
What are Savings Plan?
A savings plan is an instrument that offers an opportunity to grow your hard-earned money by combining a great savings plan with insurance and guaranteed benefits.
Understanding savings plans can help you build a strong foundation for the financial security you need. The best savings plan involves regularly setting aside a portion of your income to grow your funds over time.
It provides a disciplined framework that helps you allot resources accordingly, wisely, manage expenses, and prioritize your financial plans. By using an ideal savings plan, you can also adopt healthy financial habits and overcome unexpected challenges and expenses.
Invest in a Savings Plan
Types of Savings Plan
Saving money is very important for sound financial planning. It also provides you with a safety net for your emergencies, future expenses, & long term plans. Many types of savings plans meet different people's needs. In India, the savings plan options range from traditional ones like fixed deposits to modern investments like mutual funds.
Fixed Deposits
Fixed deposits are India's most popular and common savings instruments. Banks and financial institutions offer them as a way to allow individuals to deposit an amount for a fixed period at a predecided interest rate. Fixed deposits also provide capital protection and a guaranteed return, making them a secure option for conservative investors.
Recurring Deposits
Recurring Deposits (RDs) are one of the common familiar savings option for people who wish to deposit a fixed amount regularly, often monthly, for a pre-decided period. RDs offer flexibility regarding investment amount and duration, and they are a good option for individuals who build savings through disciplined and regular intervals.
Public Provident Fund (PPF)
Public Provident Fund is a stable and long-term plan the Government of India offers. PPF accounts have a lock-in period of 15 years, offer good interest rates, and offer tax benefits under Section 80C of the Income Tax Act. They also suit people looking for tax-efficient long-term savings with guaranteed returns.
National Savings Certificate
National Savings Certificate is an instrument with a fixed maturity period and interest rates offered by the Government of India. NSC offers tax benefits under Section 80C and can be bought from post offices across India. It also provides a safe and reliable avenue for people looking to accumulate savings over a fixed period.
Sukanya Samriddhi Yojana
SSY (Sukanya Samriddhi Yojana) is a savings plan for girls to promote their education and contribute towards their marriage expenses. It offers impressive interest rates, tax benefits under Section 80C, and partial withdrawal options after the girl child is of a certain age. SSY is a great savings option for parents looking to secure their daughter's tomorrow.
Employee Provident Fund
Employee Provident Fund is an unavoidable savings scheme after retirement for employees in India. Both the employer and the employee contribute towards the fund, and the amount collated can be withdrawn at retirement or in case of emergency. It also offers tax benefits and is an essential retirement savings tool.
Mutual Funds
MFs are schemes that collect funds from multiple investors to put money into a wide-ranging portfolio. They also offer a range of options catering to different risk management profiles. Along with that, they also offer professional management, liquidity, and a great chance for higher returns over the long-term goals.
Unit-Linked Insurance Plans
ULIPs combine insurance coverage and investment options, allowing policyholders to invest in various fund options basis on the risk appetite and financial goals. Unit-linked Insurance Plans also offer flexibility, and potential for wealth creation, making it a great choice for long-term financial planning.
Key Features of Kotak Life Savings Plan
Kotak Life savings plans stand out as a formidable solution to create a robust financial portfolio while enjoying the benefits of life insurance coverage. These plans combine the advantages of disciplined savings with long-term investment opportunities, ensuring a reliable way to achieving financial goals. With a focus on customer-centricity and a deep understanding of evolving market dynamics, Kotak Life has engineered a suite of features that set their savings plans apart from the rest.
Guaranteed Benefit
Savings plan offers a guaranteed sum, which is pre-established at the start of the policy on the basis of premiums. It also provides maturity benefits if the client survives the policy duration, and a death benefit is also offered to the nominee if the policyholder dies during the policy tenure.
Term Period
You can choose a policy term period that best fits your requirements. You can also choose the short-term saving plans if you anticipate you will need your money soon. Also, you can extend your insurance for more number of years if you want to save for the long term.
Loyalty Additions
Savings plans offer financial rewards as loyalty additions on long-term investments, increasing the plan benefits. For example, if you stick with a savings plan for a long time, your plan provider may give you extra money as a reward. This extra amount increases the total investment, which then multiplies by the time of maturity to gives you higher returns.
Increase in income
Some income plans offer income boosts and enhance the yearly proceeds during the payout phase.
Bonuses
Participating plans offer bonuses along with the plan benefits at maturity.
One-time Investment Options
Some savings plans offer the benefit of one-time payment through a single premium facility.
Enhanced Sum Assured
Investors who opt for higher premium amounts can enjoy enhanced sum assured.
Free-look Period
Insurance policies often come with a small time frame called a free-look period. Savings plans also come with this disclaimer. If a policyholder has doubts about the policy or is unhappy with the clauses put together, they can return the policy. The policyholder can return the policy in 30 days if the policy is bought online. In the case of all other channels, the free look period is 15 days.
Grace time
For annual, half-yearly, and quarterly plans, the grace period indicates that the premium can be paid within 30 days after the premium due date. Kotak Life does not impose any fines or deductions during this time. This privilege is given to the policy owners so the policy does not lapse and they get enough time to arrange the premium amount. For example, if you have a quarterly premium paying plan and the date of payment is missed, Kotak Life provides you with an extra 30 day grace period absolutely free of charge without any penalty or fine to make the payment. This extra time allows you to arrange for fund, so you don’t lose coverage.
Premiums
You have the option of paying your premiums over a particular time period or all at once. These options are available to make the policyholder's life easy and more accessible. The chosen payment method in no way impacts the assured benefits.
Savings Plans from Kotak Life in 2024
Kotak Life offers some of the savings plans that give guaranteed returns. Check out Kotak Life savings plans:
- Guaranteed@Benefits with multiple plan options to suit your varied needs
- Life cover for financial security for your family
- Option to avail Guaranteed@income for your short-term and long-term goals
- Life cover for financial security for your family
- Guaranteed@lump sum benefit with a flexible liquidity option
- Guaranteed@Yearly Additions to increase life cover
- Guaranteed@Loyalty Addition at maturity
- Enhanced Protection Through Riders
- Tax Savings
- Multiple Premium Payment Terms
Kotak Guaranteed Savings Plan
Kotak Get Assured Income Now
Kotak Fortune Maximiser
Kotak SmartLife Plan
- Enhanced Protection Through Riders
- Tax Savings
- Guaranteed@Loyalty Addition & Guaranteed@Additions
- Maturity & Death Benefit
- Multiple Premium Payment Terms
- Life Cover till 85 years of age
- 3 Plan Options - Early Income, Paid-Up Addition and Premium Saver.
- Early Income Payout from end of 1st policy month / year
- 6 Optional Riders
- Additional Benefit with the same premium for Female Life
- Additional benefit in case premium is paid through ECS/Auto Debit option
- Multiple plan options – Life Goal Maximiser, Bright Future Maximiser, Golden Years Maximiser
- Flexibility to choose bonus*payout options
- Life cover up to 85 years for you and your spouse
- Optional rider support
- A limited pay non- linked participating plan
- Offers protection up to the age of 75 years
- Choice of bonus*options
Enjoy the flexibility of Guaranteed Income Benefit withKotak Guaranteed Fortune Builder.
Benefits of Having a Savings Plan
Saving plans are very important for building a strong financial portfolio. They help people achieve both short-term and long-term goals while protecting you against unexpected expenses that may occur in future. Whether you're saving for a down payment on a house, funding your higher education, or planning a secure retirement, these plans offer you a structured approach that helps you with financial discipline and regular savings. The infographic alongside shows you the benefits of savings plans.
Regular savings plans have set benefits that can help most of us not only achieve our financial goals but also secure our family's future. Check out all the benefits below:
Protection
Security for your family against financial crisis is the primary objective of these policies. Some of these plans also guarantee returns on your investment, thereby protecting your capital.
Variety
Kotak Life offers a wide range of savings plans to cater to every financial need. You can select the one that best suits your age, budget, and financial horizon.
Multiple Premium Payment Terms
You can choose from monthly, half-yearly, quarterly, and annual modes as per your budget. Single premium and limited payment options are also available. For example, if you wanted to protect your family without being overwhelmed by a large payment all at once, you could choose a savings plan with monthly premium payments. This way, you can comfortably manage the cost within your budget while still securing guaranteed benefits for your family.
Ease of Paying Premiums
You can pay your insurance payment and renew your plan online without waiting in queues and wasting time.
Maturity Benefits
The maturity benefit is the lump sum you receive as a return after completing the policy term. You can build your own house, plan a vacation with your family, or maybe plan your retirement.
Payment Options
Premiums are supposed to help you insure your family and get guaranteed benefits, keeping you stress free. Therefore, you can choose between two premium payment modes: one lump sum payment or over a specified duration of time.
Customization
- You can augment your coverage with multiple riders and personalize your policy as per your individual needs.
- Term rider provides additional sum assured over and above the death benefit on the base plan.
- Accidental death benefit rider offers extra benefits in case of accidents.
- Permanent disability benefit rider offers rider sum assured as per the defined rider benefit if permanent disability due to an accident occurs.
- Premium Waiver of future premiums under the base plan in case of death or total disability of the policyholder.
Convenience of Choosing Policy Term
You can choose from different policy durations available in the plan according to your financial needs.
Tax Benefits
You can avail of tax benefits on the paid premiums and death /maturity benefits under these policies.
Death Benefit
If anything unfortunate occurs to you, your family will face issues if you are emotionally and financially unprepared. This is where a death benefit steps in, a lump sum payout made to a life insurance policy beneficiary.
Loan Facility
A savings plan allows you to take a loan for your financial needs only when your insurance has reached a surrender value. Once you have crossed that tenure, you may be eligible for a loan against the policy. For example, you have invested in a long term savings plan, once the plan has reached its surrender value, you then proceed to take a loan against the policy to take care of your medical expenses, home repairs or any other expenses without necessarily terminating the plan.
Take advantage of Kotak Life Savings Plan for Regular Guaranteed Returns.
Who Should Buy a Savings Insurance Plan?
Savings plans offer a combination of savings and insurance benefits. You must check if the savings insurance plan you are planning to buy aligns with your requirements. Here is how a savings insurance plan can help you.
Read more-Who should invest in a savings plan?
Young Entrepreneurs
Beginning early give investors, a chance to take greater risks and increase their chances of earning better returns. They have more time to recover from poor choices without having an impact on their long-term financial objectives. Young entrepreneurs should buy saving plans in their early days so they can get a solid second income during their entrepreneurship stint.
Recently Married Couples
A greater potential for wealth building may arise from making the most of the two-fold increase in investment power. Young couples should invest in savings schemes to plan the next phases of their life better, be it kids’ education or buying a dream house or an international vacation.
People Nearing Retirement
Savings insurance plans can be a valuable addition to retirement planning strategies. As individuals approach their retirement years, buying guaranteed returns plans can provide the dual benefit of life insurance coverage and a means for long-term savings. These retirement savings insurance plans offer financial security for the family through the life cover component. The savings portion allows policyholder to fulfil life goals.
Parents
There are several tax benefits to take into account while saving money for your child.Child insurance plans, savings accounts at state-run financial institutions, and tuition costs are exempt from taxes as long as they adhere to certain guidelines stated in the tax legislation. Parents buying money savings plans at the right time can get lumpsum returns when their kids need it the most.
Individuals with Dependents
Individuals with dependents, should consider a savings insurance plan. The policy is a financial safety net, making sure the dependents are financially secure even if the policyholder can no longer help them. Also, the savings component allows the accumulation of funds that can be utilized to handle unforeseen expenses.
Why Do You Need a Savings Plan?
Whether it is for a nice retirement, dealing with unexpected expenses, or planning for long-term goals, a savings plan is very important. Properly planned savings strategy can indeed bring about financial freedom, peace of mind, and create room for a secure future.
Aid in the Event of a Financial Crisis
A good savings policy can help you in most unexpected financial situations. The best illustration of your savings plan would help keep the household running, even with a loss of a job or a payment for school expenses during a recession.
Wings to Pursue Your Dreams
Money is one of the very valuable resources you need to realize your aspirations. The ability to utilize your savings as additional income in those areas of life will help you strengthen yourself by making you financially stronger to pursue your goals in life. To learn something, to start doing something new, for everything, you need money. For example, if you have a savings plan and want to start a new career, you can use the money to enroll in specialized courses or buy the necessary equipment need. This extra financial support helps you make the transition smoothly, while you can pursue your passion, and achieve your career goals with more confidence.
Long-Term Security
With a habit of saving money, you can meet all your other needs such as health needs or life needs beyond retirement. Your entire hard-earned money shall form the base of your future and truly give you long-term security. The ups and downs of the market will influence your compensation, which will impact any potential retirement plans or a steady income to save for the future.
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How to Choose the Right Savings Plan ?
Saving money is important tofinancial planning, helping individuals achieve their short-term and long-term goals. The best savings plan in India are the ones that match your requirements. However, choosing the best savings scheme can be difficult since numerous options are available. To make an ideal decision, it is essential to consider various factors and align them with your financial plans.
Define Your Financial Goals
Before choosing the best savings plan, it is essential to figure out your financial goals. Whether you saving for a down payment on a house, education, emergencies, or anything else? Each goal requires a different time frame and approach. By identifying your goals, you can assess the savings plan options that suit them.
Consider Time Horizon
The time horizon for your savings goal is vital in choosing the best savings scheme. Short-term goals like saving for a vacation or buying a car in a few years may benefit from more liquid and low-risk options like a regular savings account. Conversely, long-term goals like retirement planning may require growth-oriented saving plans to offer the potential for higher returns over an extended period.
Risk Tolerance
Understanding your risk tolerance is important when you are choosing a suitable savings plan that can meet your needs. Most guaranteed plans, such as savings accounts or government bonds, come with fixed interest and lower returns. If you are willing to take that extra risk for a greater gain, then investments, such as stocks or mutual funds, might be just what's right for you. You need to determine how much risk you are comfortable with in order to pick a savings plan that will best fit your comfort level and financial goals.
Evaluate Liquidity
Liquidity is the ease with which you can access your money when needed. If you think that you would need your savings soon, for emergency or other unexpected expenditures then you can choose plans that have high liquidity such as regular savings or money market accounts. If you have plenty of time and can hold up your money for longer periods then opt for options like fixed deposits or retirement accounts would more likely to yield better returns.
Research and Compare Options
You should take your time to research and compare the different savings plans available in the market. Have a look at the plans that offer you comparative interest rates, favorable terms & conditions or low fees, you could also consult with a financial advisor who can provide you more guidance that is very specific to your financial needs. You can also consider insurance companies with the high solvency ratio such as Kotak Life Insurance that has a solvency ratio of 2.56% for the year 2023-24.
Tax Considerations
Tax implications can have a significant impact on your saving plan. You need to evaluate whether the savings plan you’re considering has tax advantages or not. Understanding taxation can help you plan your investments in a better way, while also minimising your tax liability.
Regularly Review and Adjust
After you have picked your savings plan according to your financial goals, you then need to regularly review and adjust your saving strategy. This is very important as both your financial situation and personal goals may change overtime. You should periodically check the performance of your savings plan while also taking a look at your rest tolerance at the same time. This will help you make any necessary changes to keep you secured over time. For instance, imagine you originally selected a savings plan when your objective was to save money for a house. Three years later, upon getting a promotion, your objective changes to saving for your children's education. By reviewing your plan, you can increase your monthly premiums or opt for a high-return strategy to ensure that your money grows faster and aligns better with your new financial goals.
Save for your business venture with theKotak Assured Savings Plan.
When Should You Buy a Savings Plan?
Savings planning is a method of savings or investing that provides long-term benefits. Though saving with this kind of plan requires paying premiums regularly over 5 to 10 years of purchase, the returns will be available at the time the policy ends. So, when is the ideal age to buy a savings plan? The obvious answer is the younger, the better. It also offers tax exemption on income under section 80C of the Income Tax Act, 1961.
You can also get tax exemption undersection 80Cof the Income Tax Act, 1961.
Let us explore the advantages of purchasing a savings plan in your 20s, 30s, and 40s.
Buying a Savings Plan in Your 20s:
Savings plan is a risk-averse scheme that allows you to get guaranteed returns and a small component of life cover. Allocating a small part of your earning in your 20s can help you get a maturity amount that will help you sort your household expenses, plan for an early retirement, or maybe an investment in an idea that can one day become your livelihood.
Buying a Savings Plan in Your 30s:
In your 30s, buying savings scheme can help you enjoy a smooth transition into early retirement, planning for a second home, maybe an international vacation with your spouse, and a corpus that helps you in building your financial strength. Beyond this, you can also get a life cover and additional protection with rider policy.
Buying a Savings Plan in Your 40s or Later
In your 40s, you might be free from your kid’s educational expenses, but your retirement will be close and inflation might take a toll on your savings. Starting now can help you build a retirement corpus, in some cases, an additional guaranteed income benefit that can allow you to enjoy your second innings. The life cover can help your spouse to stand stronger during the golden years of your life.
Why Choose Kotak Life for a Savings Plan in India?
As far as savings plans are concerned, having a reliable & trust-worthy plan is very important. Kotak Life Insurance is one of the prominent names in the insurance industry in India. Kotak Life offers various saving plan options to choose from that cater to diversified financial goals, Kotak Life has become the preferred choice for people opting for a secure future and a strong financial foundation. Here are some sound reasons why you may choose Kotak Life as your saver in India:
Customized Saving Plans
Kotak Life offers many savings plans to help you reach your money goals and handle risk in your own way. Whether it is your children's education, retirement planning, or growing your wealth over time, there is a plan for you. The payment options of these plans are flexible, allowing you to decide how often or how long you want to pay based on your affordability. It allows you to have the ability to customize your savings plan according to your specific financial goals.
Comprehensive Coverage
Apart from the savings and investment benefits, Kotak Life savings plans also offer the benefit of life insurance. In case of an unfortunate death, the death benefit will be paid to the nominee if death occurs during the policy term. In this way, the Kotak Life Savings plan provides the wise choice for an individual seeking safety for their loved ones along with the growth of their wealth.
Superior Customer Service
Kotak Life Insurance is customer-centric and does a great job of addressing client's problems. The company has a large number of branches and customer service centers throughout India, which is great for having prompt help available at the location near you. If a policyholder needs assistance with his or her savings plan or instructions on a claim or has any other issue, the customer service team is always willing to help.
Which Savings Insurance Plan is Right for You?
Savings insurance plans allow you to decide how many years you'll be paying for your premiums and how long your policy will run. Based on the preferences you choose, your returns may change. In most cases, people pay a premium for up to 10 years and accordingly, your returns will be decided.
If you have short-term goals, you can opt for a short period of saving such as 5 years. However, having an endowment plan with a long-term growth commitment of at least 10-15 years would be better as this will give the best returns.
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guaranteed income.
Considerations to Make Before Investing in a Savings Plan
For unexpected events and a stress-free life, sound financial planning is a must. The most effective method to ensure a proper financial future is to start saving regularly at a young age. However, there are a few things to consider while choosing a savings strategy for you and your family.
Risk Capacity and Profile
Determine your risk tolerance in order to locate and select the optimal savings strategy. Two of the key factors that would most likely affect how much risk a person can accommodate include their personal preferences and age. The young adult in his 20s and 30s can, under normal circumstances, can opt for risky investments with a high return rate. They can also select more aggressive strategies, including investing more capital in equities or the stock market than that invested in the debt market. If you want to invest money in plans that carry higher risks but higher rewards, a good decision can be to invest money in aUnit Linked Insurance Plan, which is also termed as ULIP.
Ultimate Goals
Determining the most appropriate saving strategy that would save a maximized amount for you in terms of taxes requires you to be sure of your goals. It is relatively easy to pick the kind of options for saving in investments when you know the end objective, such as savings required for your retirement corpus, enough money set up for your child's higher education or wedding, or in fact maybe building a house.
Savings Plan Highlights
If you are investing in a savings plan, you have the option to use the policy to avail a loan. You can avail up to 50% of your surrender value as a loan. Surrender value is the sum you get when you forfeit your life insurance policy before maturity. You can choose the best savings plan that can provide you with security and savings because of the various choices available and wide coverage.
Start early with the Kotak Assured Savings Plan.
Buy NowImportance of Buying a Savings Plan
Economies today are witnessing constant fluctuations, and there are always events that people cannot predict. It is for this reason that people have to plan and make the right investments. A savings plan can be one of such options that offers stability and growth over time.
Building a Safety Net
Life is very unpredictable, and things like medical emergencies, job loss, or any disaster can keep your finances in disarray. By investing in a savings plan, creates a cushion to cover you and members of your family whenever there is a crisis. Such policies will help you with funds available when the need arises so that you will not risk your financial health anytime you are facing an unexpected challenge.
Encouraging Disciplined Saving Habits
The most important advantage of a savings plan is to instill discipline and consistency in your saving habits. Committing yourself to regular, dedicated contributions toward your plan actually imbibes a sense of financial responsibility. The habit of setting aside a predetermined fund each month not only helps you achieve your short-term goals and long-term plans.
Capitalizing on Compound Interest
Compound interest is a process whereby you get interest on interest in addition to the principal amount, reinvested and compounded over time. In case you put your money in a savings plan as early as possible, money grows long, and returns will accumulate exponentially over a long period. This is referred to as compounding which can significantly augment your wealth and help realize your financial goals well before time.
Achieving Financial Goals
Whether it is to buy a house, fund his or her education, or some other plans for retirement, every individual has definite financial goals he or she wishes to achieve. A savings plan acts as an organized strategy to accomplish goals. One can set aside money at regular intervals and then invest and thereby capitalize on the investment-growth potential on his or her way towards achieving that goal in the desired time frame.
Tax Benefits and Flexibility
Many savings plans offer attractive tax benefits that can help you optimize your tax liability. Contributions made towards certain types of savings plans are eligible for tax deductions, providing you with valuable and great savings. Additionally, some plans also offer flexibility in terms of withdrawal options and the ability to customize your investment strategy, allowing you to align your financial planning with your unique needs and circumstances.
How Long Should You Invest in a Savings Plan
Saving money is part of financial planning. Investing that saving could help accelerate the process of building up one's wealth. However, estimating how long to invest with a savings plan is difficult. Investment for too short a period may not reap substantial gains, whereas investing for too long might not give easy access to your funds.
Now, let's discuss the considerations that should guide our decision on how long to invest in the savings plan. Thus, we will identify what is at the middle ground that aligns with our financial goals and circumstances.
Risk Tolerance and Asset Allocation
You can decide how long you should invest in a particular savings plan by evaluating your tolerance for risk and hence planning out your investment strategy. The longer one is invested, the more aggressive he or she might be with investments and the higher the allocation to growth-oriented assets would be. Conversely, if you have a lower risk tolerance or a shorter period of time, you might need a more conservative approach with a higher allocation to fixed-income investments.
Market Volatility and Investment Returns
Always look at historical market trends, speak to financial advisors which can help you determine the potential risks and rewards of different investment duration. Although the money market volatility during the short-term period cannot be predicted, it is therefore difficult to achieve the set financial goal in a limited period. On the other hand, a long-term investment horizon affords more opportunities for the potential recovery of markets and compounding returns.
Liquidity and Access to Funds
Your liquidity and access to cash is also an important factor. If you save for a long time, you might not be able to withdraw it in case of an emergency or an unexpected expense. Keep investing for the long term, but ensure you have an adequate sum for emergencies or to meet any immediate financial requirements. Calculate your cash flow, possible emergencies, and small immediate financial liabilities while deciding on the duration of your savings plan.
Flexibility and Adjustments
Through life, there can be sudden and significant events, like change of career, marriage, children, or unexpected expenses. Thus, your investment horizon can constantly be under review and re-assessment to align your ever-changing goals and circumstances with the investment duration. Flexibility and the ability to make adjustments to your savings plan can help you adapt to changing needs.
How to Buy Savings Plan in India?
Many investors in India still prefer the traditional offline method of purchasing savings plans due to various reasons, such as limited access to the internet, preference for face-to-face interactions, or a lack of comfort with online transactions.
All you need to do is to take a few steps like approaching the nearest insurance company, filling up the necessary details, paying the premium, and just keeping a lookout for regular reviews and updates.
Steps to Buy Savings Plans Online
Saving plans are life insurance products designed to help you make regular, disciplined savings and to provide financial security for your family in case of your untimely death.
Today, with the internet, you can purchase a savings plan directly from your house, without necessarily having to go to the insurer's or an agent's office. You could spend an hour online learning about the various products being offered, learn which ones would be best suited for you, whether you qualify, upload all related documents, and even make payments. Typically, policies are sent via email, but you can also receive notifications on your phone.
Here are some simple steps you need to buy savings plans online:
Step
01
Visit the websitehttps://www.kotaklife.com/savings-plan
Step
02
Click on the“Invest Now!”It will redirect you to the application form.
Step
03
Fill out all the necessary details correctly, like name, phone number, annual income, etc. to get the ideal plan for you.
Step
04
Click on Proceed and get your Guaranteed maturity benefit and Death Benefit covered.
Testimonials
I was looking for an investment product that would offer me guaranteed yet good returns. I spoke with many of my friends, and most of them offered me a solution I already knew. I decided to research a bit on the internet when I found Kotak Guaranteed Savings Plan. I decided to check out the plan and loved it. It would help me plan my future goals in a much-structured manner, and that clicked. I bought it. This is a great product, and the assistance is good too. Long-term investors can benefit a lot from this, especially those who are looking for stable returns.
-Mr Rajendra Verma
Kotak Guaranteed Savings Plan helped me not only save a chunk of money every money through premiums but also put me into the discipline of saving. In a span of 7-10 years, I would be able to plan a few things for my house and my kids and save more and invest in growing my wealth over time. If you are looking for something that will help you get Guaranteed returns, life cover, and tax benefits, Kotak Guaranteed Savings Plan is your plan.
- Mr Abhay Vaman Sarode
Plan your finances efficiently if you want to achieve your life goals at the right time. I did it by investing in a savings plan that helped me and my family lead a stress-free life and achieve life goals. Not only that, one good feature about the product is that you get a life cover bundled with maturity benefits. Meaning in case of an unfortunate event, your family can still have the financial support to live the rainy days.
- Mr Moreshwar Daulattrao Patil
I came across Kotak Guaranteed Savings Plan when one of my friends was speaking to an insurance advisor. When asked, she said that she was planning to start investing her savings in a savings plan by Kotak Life. It offers both life cover and guaranteed returns to help you grow your wealth without any risk. All you need to do is pay a monthly premium, and you will get a pre-defined return that will be guaranteed.
- Mr Atul Mishra
Life insurance policies can help you grow your wealth at a stable rate if you choose the right product. In my case, I chose Kotak Guaranteed Savings Plan, and I am glad I did. Every month a small part of my salary goes towards saving. This corpus I can use for anything I might want to plan for the future, from buying a house to planning a vacation. In addition, their call center team and advisors help you get amazing, true insights on how these plans can help you build a good amount for the future.
- Mr Dhiren Valji Varsani
I recommend Kotak Guaranteed Savings Plan to everyone who is planning to invest in a low-risk financial instrument. It offers flexibility in choosing the premium amount, and you can start at low as 2000/month and go as high as ₹10000/month, which is great. Your returns would differ as per the premium you pay. You can check it all on their online portal. You can simply fill in your details, and the portal will open up for you. All the information from premiums to returns and life cover is mentioned there. If you are happy, you can buy it from here. That simple.
- Mr Lingeshwar Hanumanta Machhiwar
Documents required to buy Savings Plan online
When you are prepared to buy a savings plan, make sure you have the following paperwork:
Reasons to Buy a Money Savings Plan
Saving money is important for your financial health. If you want to prepare for a safe future, go on a dream vacation, or deal with unexpected events, having a strong savings plan is essential. There are many ways to save money, but a specific savings policy provides special benefits that make it a good option for people looking for financial security.
Cultivating Financial Discipline
Amoney savings planhelps you handle your personal finances better. The saving habit that develops by saving a fixed sum of money regularly develops your financial base. The good habit of saving goes deeper into spending smartly and the efficiently managing your money.
Emergency Preparedness
Life is full of surprises, and you may face unexpected costs at any given moment. A savings plan works like a safety net during financial tough times, helping you with the money you need to take care of emergencies without having to use credit cards or loans. When you have a special savings fund, you can handle unforeseen events calmly and with confidence, knowing you have money set aside for help.
Achieving Short-Term Goals
A savings plan can fulfill your short-term goals such as buying a new car, renovating the house, or planning a vacation. By saving a portion of your money regularly, you will be accumulating funds over time, and through such funds, you are in a position to achieve your dreams without depending on loans or taking on other debts; thus, it is very rewarding to reach your financial goals through your own efforts.
Long-Term Financial Security
Saving money in a savings plan is the best smart move to make towards protecting your future and financial security. In saving money regularly and growing the same over time, you are really building a safety net for retirement, education, or even other long-term goals. The power of compounding can do wonders to the saved amount, multiplying it over time and helping you build wealth and enjoy a comfortable future.
Flexibility and Convenience
Money savings plans offer you various options to suit different people's preferences and financial goals. You can choose a regular savings account, a fixed deposit, or a mutual fund depending on the amount of risk you want to take and the financial goals you have in your mind. Moreover, with online banking and mobile applications, keeping track and managing your savings plan has become easier than ever.
Protection Against Inflation
Inflation erodes the purchasing power of the money over time. Allocating a certain sum of money in a savings plan preserves your money against inflation. Certain savings options, such as certificates of deposit or inflation-indexed securities, provide returns higher than the inflation rate so that your money is still valuable and maintains its purchasing power.
Invest for a brighter future withKotak Savings Plan.
Factors Impacting Savings Plan Premium
Saving for the future is an important part of financial planning, and a savings plan will provide you with a safe & disciplined way of achieving your long-term financial goals. However, they are various factors that influence the savings plan returns as well as its premiums. Hence, knowing more about these factors & evaluating them will help you put your money in the right savings plans according to your needs and financial goals.
Premium Amount
The two main factors determining the premium of your savings plan are the premium amount and the term length chosen for a savings plan. The amount refers to the total sum assured, that is, the amount disbursed by the insurer in case of the death of the policyholder or at the maturity of the plan. Generally, more funds result in a higher premium because they imply a higher potential payout for the insurance companies.
Gender
In the past, gender has affected the prices of different insurance products, including savings plans. Actuarial data has shown that certain health risks and life expectancy can be different for men and women. It is important to understand that using gender to set prices might still happen in some areas, which affects the premiums for savings plans.
Flexibility of a Savings Plan
To reach your financial goals, it's important to choose a flexible savings plan. In this way, you can handle unexpected needs and still have the option to take money out if you need to.
Nevertheless, it is advisable to keep the tax-saving savings plans for a longer period of time because that would help one achieve a higher rate on maturity.
FAQs
What are Savings Plans?
The savings plan helps you to save money on a regular basis and hence allocate this sum to money-making avenues so that it can grow over a period of time to generate returns for your future requirements. These plans also provide life coverage. If any unfortunate event occurs, your family will not suffer financially, as it protects them too. Some examples of these plans include endowment policies, ULIPs, and money-back plans.
What are Guaranteed Savings Plans?
Aguaranteed savings planoffers the assurance of higher returns. The sum assured is declared upfront and hence such plans offer a fail-safe lump sum at the end of the policy tenure.
Are the returns guaranteed in a Guaranteed Savings Plan?
A guaranteed savings plan is a reliable one, always keeping its promise of providing guaranteed returns. Even when the market looks uncertain, you will receive a steady income because the investment usually does not get affected by the ups and downs of the market. Such plans offer the safety of investment for those who prefer low-risk options.
Does a Guaranteed Savings Plan have tax benefits?
The premiums paid are eligible for a deduction of up to ₹1,50,000 under section 80C of the Income Tax Act, 1961. You can also benefit from a tax-free payout because the maturity benefit is exempt from taxation under Section 10 (10D).
How can I compare and choose the best Guaranteed Savings Plan?
The best guaranteed savings plan should be picked based on the length of the policy, minimum and maximum age limits, yearly premium costs, and the amount you are guaranteed at maturity. Any extra benefits offered are also a great way to weigh between plans. When all these things match your needs, you will know it is the right plan for you.
What happens if I discontinue the Guaranteed Savings Plan?
If you still want to cancel the plan, the surrender value of the savings plan will be provided. However, this clause will only apply if the policy has been in force for more than three years.
How to determine the perfect savings plans for your needs?
a.Identify your financial needs
b.Select the premium payment terms wisely
c.Consider liquidity
d.Pay attention to the fine print
e.Weigh in tax-savings
You can claim tax deductions under Section 80C of the Income Tax Act 1961 for the premiums paid towards these plans. Moreover, the maturity benefits, as well as the death benefits, are also tax-exempt, subject to the conditions specified in Section 10(10D).
How much money should I save before investing?
Spend no more than 50% of your take-home pay on necessities, reserve 15% of your pre-tax income for retirement savings, and save 5% of your take-home pay for short-term savings. Then, build the fund up to three months' worth of costs before allocating your money between investments and a savings account until you have six to eight months' worth saved up. Invest your money in things that make more money than a bank account for retirement and other goals. Put 15% of your income before taxes into retirement savings and 5% of your total income into short-term savings.
What are savings plans and how do they work?
Savings plans are financial products that help people save money for certain goals or for the future. They allow people to put in a regular amount of money into the savings plan, which is then invested and earns interest over time. The saved money can be used for various purposes, such as education, retirement, or in emergencies.
When is the right time to begin a savings plan?
The right time to begin a savings plan is as early as possible. Starting early allows you to take advantage of compounding interest and gives your money more time to grow. The earlier you start, the more time you have to save and the more your savings can accumulate over time.
How can a savings plan help me?
A savings plan can help you in many ways. Savings Plans encourage you to save regularly. It can further your financial goals since it constantly grows your money. Your money will grow because of the added investments and interests. And then there are tax benefits associated with most savings plans, which can give you a good feeling about your financial future.
What is the right way to begin with a long-term saving plan?
Stocks are the best long-term investing methods for gaining substantial growth in over long term. A systematic investing technique can be used to make long-term investments in equities or mutual funds (SIP).
Is pairing life insurance and saving plan a good idea?
When you need periodic payouts to plan and pay for specific expenses while also having life coverage, a plan that combines protection with savings is excellent. With money-back plans, you receive recurring payouts that help you with your day-to-day expenses while also providing you the benefit of life insurance.
Are there any tax benefits to a savings plan?
Absolutely, there can be some tax benefits with some saving plans. For example, in India you can deduct contributions to a retirement savings plan from your income before calculating your tax liability. That means you lower your taxable income by the amount you contribute. Even some savings plans have tax-deferred growth-meaning you don't pay taxes on those investment earnings until sometime in the future when you withdraw your money. However, tax benefits vary according to the savings plan and country of residence.
Who should make traditional planning investments?
Traditional planning investments are best suited for conservative or more predictable investments. Such plans are usually recommended for anyone who has low tolerance when it comes to risk and hence prioritizes capital preservation which still offers attractive returns. Mostly, traditional planning investments are fixed-income products like bonds, certificates of deposit, or savings accounts.
Is it a good idea to put money aside for retirement?
Yes, it is usually a good thing to save for retirement. Retirement saving allows someone to set up a foundation that will provide financial security and support his lifestyle when he ends his working life. Generally, saving early and providing regular contributions to a retirement savings plan will ensure a comfortable retirement and less dependency on government pensions or other means of income.
How much should I save each month?
The amount to be saved every month, of course, depends on one's financial goals, income, expenses, and other individual circumstances. Generally, financial experts mostly advise saving 10-20% of one's earnings. However, it's important to assess your own financial situation and create a budget that will help you determine a savings amount that is realistic and aligns with your goals.
Should I pick a long-term or a short-term savings plan?
You can choose short-term investment opportunities if you want to keep your money safe and make decent returns. However, you should put money into long-term investment opportunities if you want to grow your money at a substantial pace.
How much money should I start saving at the young age of 25?
Starting to save around the age of 25 is a good initiative. The amount you should save depends on the money that you intend to spend on your daily activities as well as what you want to achieve financially. Save, at least a percentage of the income, generally suggested as 10-20%. Of course, the specific amount will depend on your personal situation. It's a good idea to have a budget in mind when estimating retirement age, lifestyle expectations, and other financial obligations to determine your savings goal.
What is the difference between a savings plan and a regular savings account?
A savings plan is a financial product created for your savings goals and purposes like education or retirement. Contributions are regularly made into it with the expectation of accumulation and growth of your money through investing them over the long term. On the other hand, a regular savings account is a basic deposit account offered by banks and can be deposited into and withdrawn from at will. Savings plans, for the most part, tend to have more features than common savings accounts, including lots of investment alternatives and even potential tax benefits.
Can I have multiple savings plans?
You also can have more than one savings plan, and in fact, having multiple savings plans can help you save strategically and grow your different goal simultaneously. You could have a retirement-oriented savings plan, an education-related savings plan, and an emergency fund savings plan. You would, thereby, be able to track your savings in a better manner & allocate your funds accordingly
Can I change the amount of my contribution to a savings plan?
The ability to change the amount of your contribution to a savings plan depends on the specific terms and conditions of the plan. In many cases, you can adjust the contribution amount, either by increasing or decreasing it, according to your financial circumstances or goals. However, it's important to review the terms of your savings plan or consult with the plan provider to understand the options and any associated rules or fees.
What happens if I miss paying the premium to my plan?
Missing premium payments to a savings account may result in various consequences depending on the terms of the account and the policies of the financial institution. If you miss a payment, there might be late payment fees, penalties, or the account could be subject to certain restrictions. In some cases, missing multiple payments may even lead to the account being closed. It is important to review the terms and conditions of your savings account and contact your bank or financial institution to understand their specific policies.
Are savings plans insured by the government?
The insurance coverage for savings plans varies across countries. In India, not all savings plans have government insurance. It is therefore important to check the insurance coverage associated with your savings plan through your financial institution or the respective plan provider.
Can I make withdrawals from my savings plan?
Yes, you can usually withdraw from a savings plan, but access and the terms of withdrawal will depend on the terms and conditions of the plan you choose. Savings plans could be accessed for partial or total withdrawal at any time while others have certain conditions and some penalties for early withdrawal. Therefore, you should check the terms and conditions of your savings plan to see what options for withdrawing you have, along with associated fees or penalties if they apply.
What happens if I want to close my savings plan policy before reaching maturity?
If you decide to redeem your savings plan before it reaches maturity, there may be certain consequences or charges, and this again depends on the terms and conditions of the plan. This means premature withdrawal from a savings plan could involve loss of possible returns, penalties, or even surrender charges. It is therefore important to go through the terms of your saving scheme carefully and discuss its implications with your plan provider or financial advisor before you conclude to close the policy prematurely.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS
IRDAI or its officials do not involve in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.
Tax Benefits & Disclaimers
Tax benefits are subject to conditions specified as per Income-Tax Act, 1961. Tax laws are subject to amendments from time to time. Customer is advised to take an independent view from tax consultant.
Note: Riders shall not be available for policies purchased through POS distribution channel. You may avail of tax benefits as per Income Tax Act, 1961, Tax benefits are subject to change as per tax laws. Customer is advised to take an independent view from tax consultant. Goods and Services Tax and Cess as applicable shall be levied over and above premium amount as per applicable tax laws.
@Guaranteed benefits due under this plan are available provided premiums are paid regularly for the entire premium payment term and the policy is in force. *Please note that Bonuses are NOT guaranteed and may be as declared by the Company from time to time. Benefits under this plan are dependent upon the performance of the participating Funds. The premium figures are exclusive of Goods and Services Tax and Cess, as applicable. Goods and Services Tax and Cess thereon, shall be charged as per the prevalent tax laws over and above the said premiums.
$The above illustration is for Male aged 18 years, Premium: Rs. 1,00,000 p.a., Premium Payment Term: 10 years, Deferment Period: 1 years, Policy Term: 11 years, Income Benefit Period: 25 years & Income Benefit Frequency: Annual. Plan option opted is Long Term Income – Income Only for online channel. The premium figures are exclusive of Goods and Services Tax and Cess, as applicable. Goods and Services Tax and Cess thereon, shall be charged as per the prevalent tax laws over and above the said premiums. Guaranteed benefits due under this plan are available provided premiums are paid regularly for the entire premium payment term and the policy is in force.
#The above illustration is for an 18-year-old healthy male, non-smoker who is willing to invest Rs. 10,000 per month and will pay for 10 years for this policy; where the policy term is 20 years, the basic sum assured is Rs. 16,79,344 and guaranteed maturity benefit is Rs. 26,40,213. The premium is assuming the policy is bought Online. The above premium figures are exclusive of Goods and Services Tax and Cess. Goods and Services Tax and Cess thereon shall be charged as per the prevalent tax laws over and above the said premiums.
Kotak Guaranteed Fortune Builder,UIN: 107N128V06. Kotak Term Benefit Rider, UIN:107B003V03 Kotak Accidental Death Benefit Rider, UIN:107B001V04, Kotak Permanent Disability Benefit Rider, UIN:107B002V03, Kotak Life Guardian Benefit, UIN: 107B012V02, Kotak Accidental Disability Guardian Benefit, UIN: 107B011V02, Kotak Critical Illness Plus Benefit Rider -107B020V02. A Non-Participating Non-Linked Life Insurance Individual Savings Product. This is a saving and protection oriented plan. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak Assured Savings PlanUIN :107N081V07. Kotak Term Benefit Rider – UIN: 107B003V03 Kotak Accidental Death Benefit Rider UIN: 107B001V04, Kotak Permanent Disability Benefit Rider UIN: 107B002V03, Kotak Life Guardian Benefit Rider – UIN: 107B012V02, Kotak Accidental Disability Guardian Benefit Rider – UIN: 107B011V02, Kotak Critical Illness Plus Benefit Rider UIN: 107B020V02. This is a non-participating non-linked life insurance individual savings product. This is a saving cum protection oriented plan. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders, please read the Rider Brochure.
Kotak Fortune MaximiserKotak Fortune Maximiser UIN: 107N125V03, Kotak Term Benefit Rider, UIN: 107B003V03, Kotak Accidental Death Benefit Rider, UIN: 107B001V04, Kotak Permanent Disability Benefit Rider, UIN: 107B002V03 Kotak Life Guardian Benefit, UIN: 107B012V02, Kotak Accidental Disability Guardian Benefit, UIN: 107B011V02, Kotak Critical Illness Plus Benefit Rider - 107B020V02 This is Participating Non-Linked Life Insurance Individual Savings Product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak SmartLife PlanKotak SmartLife Plan UIN: 107N102V04, Kotak Term Benefit Rider UIN: 107B003V03, Kotak Accidental Death Benefit Rider UIN: 107B001V04, Kotak Permanent Disability Benefit Rider UIN: 107B002V03, Kotak Critical Illness Plus Benefit Rider UIN: 107B020V02, Kotak Life Guardian Benefit Rider UIN: 107B012V02, Kotak Accidental Disability Guardian Benefit Rider UIN: 107B011V02. This is a Participating Non-Linked Life Insurance Individual Savings Product. Benefits under this plan are dependent upon the performance of the participating Funds.
Kotak Guaranteed Savings PlanUIN: 107N100V05. Kotak Term Benefit Rider, UIN: 107B003V03, Kotak Accidental Death Benefit Rider, UIN: 107B001V04, Kotak Permanent Disability Benefit Rider, UIN: 107B002V03, Kotak Life Guardian Benefit, UIN: 107B012V02, Kotak Accidental Disability Guardian Benefit, UIN: 107B011V02. This is a non-participating non-linked life insurance individual savings product. This is a saving and protection oriented plan. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak Get Assured Income NowKotak Get Assured Income Now UIN: 107N141V02, Kotak Term Benefit Rider, UIN: 107B003V03; Kotak Accidental Death Benefit Rider, UIN: 107B001V04; Kotak Permanent Disability Benefit Rider, UIN: 107B002V03; Kotak Life Guardian Benefit, UIN: 107B012V02; Kotak Accidental Disability Guardian Benefit, UIN: 107B011V02, Kotak Critical Illness Plus Benefit Rider - 107B020V02. This is a Participating Non-Linked Life Insurance Individual Savings Product. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Please note that Bonuses are NOT guaranteed and may be as declared by the Company from time to time. The risk factors of the bonuses projected under the product are not guaranteed. Past performance doesn’t construe any indication of future bonuses. These products are subject to the overall performance of the insurer in terms of investments, management of expenses, mortality and lapses.
This website content only gives the salient features of the plan.
Section 41
Extract of Section 41 of the Insurance Act, 1938 as amended from time to time states: (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. (2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakhs rupees.
Section 45
Fraud, Misstatement and Forfeiture would be dealt with in accordance with provisions of Section 45 of the Insurance Act, 1938 as amended from time to time. Please visit our website for more details:
https://www.kotaklife.com/assets/images/uploads/why_kotak/section38_39_45_of_insurance_act_1938.pdfKotak Mahindra Life Insurance Company Ltd.
Reg No. 107
CIN : U66030MH2000PLC128503
Regd. Office:
8th Floor, Plot # C- 12, G- Block, BKC,
Bandra (E), Mumbai - 400051
Toll Free: 1800 209 8800
Website: www.kotaklife.com
WhatsApp: 9321003007 | ARN No.: KLI/24-25/E-WEB/1234
Trade Logo displayed above belongs to Kotak Mahindra Bank Limited and is used by Kotak Mahindra Life Insurance Company Ltd. under license.