The ongoing pandemic has ensured that people learned the hard way the importance of savings. There have reportedly been instances where people have had to break their fixed deposits and sell properties and gold to save their loved ones due to a financial crisis.

The problem most people make is that they usually prioritise expenditure over savings when it should be the other way round. Having savings is necessary for protecting your loved ones after the demise of a breadwinner, children's education, post-retirement planning, etc.

Are you interested in knowing about a saving tool that compensates for economic losses without the burden of paying them back? This mechanism ensures that your family's standard of living is not affected even when the breadwinner is absent.

Before we talk about the saving tool, let us briefly discuss “why savings are necessary?”

Here's why savings are necessary:

• For building wealth
• Securing financial future
• Preparing for lifeÂ’s uncertainties
• Opportunity to enjoy a quality life

Life Insurance – A Saving Tool

Various life insurance products are considered as a great saving tools. They not only guarantee life cover throughout the policy term, but also offer returns that can help complete financial goals or fight financial uncertainties.

The benefits of life insurance are numerous, and you can choose as per your risk appetite. However, let us quickly run through a few top life insurance saving tools:

Savings Plans

Savings insurance plans are goal-oriented savings plans that include not only death benefit (paid in the event of death of the life insured) but also maturity benefit that is paid if the life insured survives till end of the policy term. Therefore, the premium under these plans has two elements: Investment + life cover.

Savings life insurance plans come with two variants – traditional plans and guaranteed plans .

Traditional insurance planshave two types of participating and non-participating policies. Participating policies are where a some part of returns are guaranteed and some part is based on the bonuses declared by the company (here the policyholder shares the profits of the insurance company). Whereas, in a non-participating plan the benefits are completely guaranteed.

Suggested Plan: Generali Central New Assure Plus

Aguaranteed planprovides assured benefit to the policyholders. This traditional insurance plan provides life cover, together with guaranteed payouts, if any and maturity benefits, if any. Guaranteed plans, thus,act as another source of incomeby providing assured payout(s) at regular intervals of time.

Suggested Plan: Generali Central Money Back Super Plan

Child Plans

Every parent has a dream about their child's future. As the child turns into an adolescent, those dreams become a priority. There are many factors to consider while planning for a child's education. These could be the target date of a savings planÂ’s maturity depending on the child's age, analyzing the current cost of education, determining the target amount, and estimating the returns.

Payouts received are used for a child's education. The Generali Central Assured Education Plan is an excellent way to save money for your child's education. Here, the childÂ’s education is secured even in case of an unfortunate event in the life of the assured.

Suggested Plan: Generali Central Assured Education Plan

Retirement Plans

One of the common questions posed by anyone who is starting to look into savings is: “What is the right time to invest in a retirement plan?”

The response to this question is quite simple: at the earliest, as soon as you start earning.

Some of the benefits that retirement plans offer are:

• Guaranteed vesting benefit
• Flexible premium paying term
• Worry-free retirement
• Life coverage

Suggested Plans: Generali Central Lifetime Partner Plan and Generali Central Assured Income Plan

Conclusion

From the points discussed above, it is clear why it is essential to save for future milestones. Without savings, unexpected expenses become burdens. Savings make us financially independent and provide for these milestones without worry.

Additionally, life insurance products provide a safety net for the family and ensure that it maintains the same standard of living even without the breadwinner.

So, do not wait!

There are a variety of life insurance products offered by Generali Central Life Insurance. To know which plan fits best with your needs, connect with our financial advisor by clicking here !