Savings Plans

You've got your income flowing in, and now you're thinking, "What do I do with it?" That's where you should consider getting a decent life insurance plan along with some savings. Here’s the point: if you keep your money in the bank, it may lose value over time. This is especially true if you continue to be a penny-pincher like you were in college. So, it becomes prudent to also save regularly as per your spending capacity to make sure your money grows with your growth in life. If you need extra money in the future, you can use the savings you built up.

Investment options to align with your risk tolerance and goals.
Flexible premium payment options, to adjust the frequency or premium.
Bonus and Returns for potential growth of your savings over time
Tax benefit under Section 80C

Know more about our Savings Plans

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What is a Savings Plan?

A savings plan acts as a reliable tool for financial security, blending savings with life insurance coverage. This approach involves setting aside part of your income regularly. This way, your family won’t have to face financial burdens if you are not there. Investors then invest these savings in a stable money-market fund, which steadily grows over time. What sets SUD Life savings plans apart is their added layer of protection irrespective of what happens in the market. In the event of unforeseen circumstances during the plan's tenure, your beneficiary will receive a payout, lump sum or in parts, depending on the type of policy you opt for. And, upon maturity, savings plans guarantee a fixed return on your hard-earned investment. This reliability makes them particularly appealing to you if you are risk-averse and seeking to achieve your long-term financial objectives without undue worry. In essence, savings plans offer a 360-degree approach to your financial growth and security, making them an ideal choice if you are prudently saving towards your family’s future. But let's not forget about inflation, silently chipping away the value of your money over time. Savings Plans, though, are mostly designed to outpace inflation, they also ensure that your wealth doesn't just keep up with rising prices but actually stays ahead of the game by a fair share as well. So, when you're on the lookout for the perfect savings plan, you may want to factor in your affordability, risk appetite, and long-term goals to find that sweet spot where your money can thrive and grow.

What are the Types of Savings Plans in India?

Savings plans are like tailor-made suits for your financial needs – they come in different styles to suit every stage of life. Here are the main categories you can explore:

1.Endowment Plan

An endowment plan is a traditional savings plan bundled with life insurance. You pay regular premiums, and at the end of the policy term, you receive a lump sum maturity benefit in the event you outlive the policy term. These plans usually invest your premiums in low-risk debt instruments, offering stability and security. \

Why Consider It?

Endowment plans are perfect if you’re seeking steady returns and a lump sum payout down the line. They're ideal if you are risk-averse and looking to build a financial cushion for long-term goals, with added perks like tax benefits and life insurance coverage for your family's financial security.

2.Money Back Plan

This plan does what it says on the tin – it gives you money back at regular intervals during the policy term, along with the remaining sum assured and bonuses at maturity. You get a little something every now and then to keep your financial boat afloat.

Why Consider It?

If you're worried about liquidity during the policy term or have big-ticket expenses lined up every few years, a money-back life insurance plan can provide that extra cash flow. Plus, in the unfortunate event of your demise during the policy term, your beneficiary may also get the full sum assured, regardless of the payouts received depending on the plan and insurer.

Why Invest in a Savings Plan?

There's no denying it – opting for a savings insurance plan is a choice you cannot go wrong with. With a meticulously crafted savings plan, you can chart a course that suits your needs the best, realise your financial goals, and be guarded for the future to come. Let's dive into why should you even consider getting a savings plan in the first place with SUD Life

What should be your ideal policy tenure for a Savings Plan?

01.Duration

Your investment duration should match the timeframe of your financial goal completion. If you're saving up for something short-term like a mini-vacation or a bike, a savings plan with a shorter duration may be appropriate. However, if you're planning for long-term goals like buying a house or retirement, it’s better to look for a savings plan with a longer duration to accrue more savings over time.

02.Risk Comfort

03.Age Considerations

04.Liquidity

What is the ideal age to Buy a Savings Plan?

See, the right time to save is whenever you can begin with it. We may have broken it down into cohorts below but the general idea stays the same - NOW is a great time to SAVE!

In Your 20’s

Your mid-20s are a golden opportunity to start saving. Why? Well, for starters, you enjoy the perk of lower premiums. Insurance providers view young adults as low-risk policyholders, translating to more budget-friendly premiums that are locked for the rest of the term. Imagine locking in a lower rate while you're still in your prime earning years – that’s a massive discount for what you get.

In Your 30’s

Missed the boat in your 20s? Don't worry – the 30s is the period when most of us realize that it’s a bit late but at least start with it. Although premiums may edge up slightly, your income now may comfortably cover the cost. Moreover, with a clearer vision of your family's financial needs, determining the right coverage becomes all the easier.

In Your 40’s & Beyond

Even if you've hit the milestone of 40 or beyond, it's not too late to join the savings plan bandwagon. While premiums may be higher and medical tests may be required, it's still a wise move to ensure your loved ones are financially protected. Remember, some coverage is better than none at all.

Who Should Consider Buying a Savings Plan in India?

Now that we've explored the 'why' of ULIPs, let's dive into the 'who'. Are ULIPs for everyone? Well, not necessarily. But they might be just what the doctor ordered for certain individuals. Let's break it down:

First Jobbers
Newly-Weds and Parents
Conservative Investors
Retirement Planners
Tax Savers
Emergency Fund Builders

Early Career Professionals or First-Jobbers

Why should you get a life insurance savings plan if you have just got your first job yesterday? See, starting a savings plan early in your career is beneficial as it allows you to take advantage of the compounding growth at a cheaper premium than someone who’s 5-10 years older than you. By beginning early, you make sure you have the maximum time during your professional stint to build a solid financial corpus.

You have time on your side, allowing you to take advantage of the power of compounding.
Your risk appetite is likely higher, making equity-oriented ULIPs an attractive option.
You can start with smaller premium amounts and increase them as your income grows (if the ULIP plan allows you to do so).

Benefits of a SUD Life Savings Plan

When you're considering a savings plan, it's important to understand the full range of benefits you can expect. SUD Life offers a variety of savings plans, each with its own set of advantages. Let's break down these benefits in more detail:

Maturity Benefit

Life Insurance Coverage

Survival Benefit

Income Benefit

Death Benefit

Lump Sum Benefit

Accident Total and Permanent Disability Benefit

Additional Benefits

Reversionary Bonus

Terminal Bonus

Non-guaranteed Bonus

Waiver of Premium Benefit

When you're looking at SUD Life savings plans, it's worth taking the time to understand these benefits in detail. Consider how they align with your financial goals and personal circumstances. Are you more interested in guaranteed returns, or are you comfortable with some market-linked elements? Do you need regular payouts, or are you saving for a long-term goal?

Remember, the right plan for you will depend on your individual needs, risk tolerance, and financial objectives. Don't hesitate to ask questions and seek clarification on any aspects you're unsure about. After all, choosing a savings plan is an important decision that can have a significant impact on your financial future.

Factors to Consider Before Choosing a Life Insurance Savings Plan

When selecting a life insurance savings plan in India, several critical factors warrant careful consideration. These aspects not only influence your decision-making process but also dictate how effectively your financial needs are addressed in the long run.

Tips for Maximising Benefits from Life Insurance Savings Plans

Consistent Premium Payments: Consistency matters when it comes to insurance, whether it's life or any other type. Paying your premiums on time keeps your policy active, ensuring uninterrupted growth in your investment. Treat your premium payments as a financial priority like any other life decision such as home loan EMIs, etc. to avoid the lapse of your policy, which could jeopardize your coverage and benefits. A great way to could be to set up automatic payments or reminders that can help you stay on top of your payments.

Regular Reviews: Life changes, and so do your financial needs. Periodically review your life insurance savings plan to ensure it still meets your current objectives and lifestyle and is at par or surpasses the inflation rate. Adjustments may be needed, such as modifying the sum assured or adding additional benefits or riders. Regular reviews, preferably with a financial advisor or your insurance agent, keep your policy relevant and optimized for your evolving financial situation.

Additional Benefits: Many life insurance savings plans offer extra benefits and riders, like critical illness coverage or premium waivers. These add-ons enhance your policy's coverage, providing additional protection against certain specific risks. You should choose riders that suit your needs, like a critical illness rider for lump sum payouts or a premium waiver rider for policy continuation in situations where you don’t want your family to shoulder your financial burden. By selecting the right riders, you create a more comprehensive safety net for you and your loved ones.

To make the most out of your life insurance savings plan, it’s essential to approach it with strategy and awareness apart from your love for making returns on your savings. Here are some tips that can help you maximize its benefits –

Factors Influencing Your Savings Plan Premiums

Understanding the factors that impact your premiums is paramount. It's not merely about selecting a plan and paying a random amount; several key elements significantly influence the premiums you'll be paying towards your policy. Let's dissect these factors –

Age and Policy Duration

Your age and the duration of your policy play pivotal roles in determining your premium. If you’re young and healthy, you can naturally enjoy lower premiums due to your lower risk of health issues and the longer investment horizon for insurers. It's akin to receiving an early bird discount for planning ahead. Conversely, longer policy durations may entail higher premiums as insurers bear the risk of covering your life for an extended period.

Smoking and Drinking Habits

Lastly, lifestyle choices, particularly smoking and drinking habits, significantly impact premiums. If you're a smoker or indulge in heavy drinking, you should be ready to shell out higher premiums. This isn't a moral judgment but a financial one by the underwriters of these life insurance companies. It’s no news that these habits are associated with increased health risks, elevating the likelihood of claims. And accordingly, insurance companies adjust premiums to mitigate these risks.

Medical History

Your personal and family medical history is another critical factor. If your medical records have a tinch of abnormality or if certain health issues are prevalent in your family, insurers perceive you as a risky individual, which means, higher premiums. Insurers analyze these histories to anticipate potential health issues that could lead to claims in your policy duration.

Mistakes to Avoid while Buying a Life Insurance Savings Plan

Understanding the common pitfalls in choosing and managing a life insurance savings plan is crucial for ensuring a secure financial future. Let's dive into some of these crucial mistakes that could derail your financial planning efforts.

Need For a Plan

Often, you may jump into purchasing life insurance without a clear understanding of your actual needs. Knowing how much coverage you need based on your financial obligations, dependents, and long-term goals is essential. If you overshoot your estimations, you can end up putting unnecessary premiums into your policy while underestimating can leave your family in a lurch. Start by calculating your debts, ongoing living expenses, and future obligations (like college fees for kids) to get a realistic figure on your coverage needs.

Read the FINE PRINT

The devil is indeed in the details when normal people like us miss reading the policy's fine print. More often than not we skim over the fine print, only to be caught off guard by clauses that affect our coverage and payouts. Try paying the same amount of attention you put while scrolling through Reels into exclusions, limitations, and terms of renewal. Being aware of these nuances can save you from surprises down the road, ensuring that your plan meets your expectations fully.

Choosing the Wrong Policy

Life insurance isn't one-size-fits-all—not by a long shot. From term life insurance, which offers straightforward coverage for a specified period, to whole life insurance, which includes an investment component, the options are vast. Falling into a booby trap of choosing the wrong policy is easy. Decide what you're looking to get out of the policy—are you looking for simple coverage, or do you want to build cash value over time? Ask the right questions.

Plan Updation

Life is full of changes—marriage, childbirth, career shifts—and your life insurance plan should be able to keep up with your life stages. Failing to review your policy regularly means you might be left with a plan that no longer fits your current situation. Make it a point to review your life insurance savings plan annually or after major life events. This way you know that your coverage matches your current needs and that beneficiaries are up to date.

Do you even NEED a Savings Plan?

Deciding whether a life insurance savings plan is your cup of tea is a bit like figuring out if you really need an umbrella in Mumbai during July – usually, the answer is yes, but let’s dive deeper into why that is.

Looking Out for Your Loved Ones
Flying Solo?
Check Your Financial Health
Monitor Your Savings Plan

Looking Out for Your Loved Ones

If your top concern is to cover your loved ones financially and secure them no matter what, then a life insurance savings plan is the plan to opt for. It's that peace of mind knowing your family will be okay financially if life throws a curveball your way while your savings give back returns in the event you outlive your policy duration.

Critical Questions before buying a Savings Plan

Do I have financial dependents who would face hardship without my income?

Does my current workplace offer sufficient life insurance coverage?

Am I looking for a savings vehicle, investment returns, or both?

How does a life insurance savings plan fit into my broader financial strategy?

Do I have a solid emergency fund in place?

To wrap your head around whether a life insurance savings plan is for you, consider these probing questions:

How to know if you have chosen the right Savings Plan?

First off, it aligns with your goals. Whether you're saving up for your kid's college fund, retirement, or dream vacation, the plan you choose should be your steadfast partner in crime, helping you get to where you want to be. If your plan has you on track without making you cut out your morning cup of kadak chai, you're probably on the right path.

Next up, flexibility is key. Your financial plan should always be able to handle the ups and downs of your life. A good savings plan lets you choose your adjustments in terms of your premium payment terms and policy terms right at the beginning.

Lastly, the costs. Nobody likes costly surprises, especially when it comes to fees. A plan that's transparent about costs and doesn't eat into your savings with high fees is a winner. Remember, it's about growing your money, not dwindling it down with charges you didn't see coming.

Choosing the right savings plan on a busy street of financial tools can feel like trying to find a needle in a haystack. But, don't sweat it. Knowing you've made the right pick comes down to a few tell-tale signs. Let's break it down, shall we?

How Does SUD Life ULIPs Work?

We've talked about what ULIPs are and who they might be suitable for. Now, let's roll up our sleeves and dive into the nitty-gritty of how SUD Life ULIPs actually work. It's not rocket science!

The Premium Split

When you pay your ULIP premium, it doesn't all go into one big pot. Instead, it's divided into three main components: 1. Insurance Coverage: A portion of your premium goes towards providing you with life insurance coverage. This ensures that your loved ones are financially protected in case of any unfortunate event. 2. Investment: The lion's share of your premium is invested in various funds of your choice. This is the part that has the potential to grow your wealth over time. 3. Charges: Various charges are deducted from your premium to cover the costs of managing your policy and investments over time. Some charges are also returned back if you opt for ULIPs from SUD Life.

The Investment Process

Next, you get to play either the fund manager or deploy one based on your strategy. You choose where you want your money to be invested. Most insurance companies offer a variety of fund options: -Equity funds: These invest primarily in stocks. Higher risk, but potentially higher returns. Debt funds: These invest in fixed-income securities like government bonds. Lower risk, but potentially lower returns. Balanced funds: A mix of both equity and debt. A middle ground for the risk-averse who still want a taste of equity returns. You can even split your investment across multiple funds. It's like not putting all your eggs in one basket.

The Flexibility Factor

SUD Life ULIPs are not a 'set it and forget it' kind of investment. They offer several flexible features: 1. Fund Switching: Most ULIPs allow you to switch between different funds without any extra cost (up to a certain number of switches per year). This means you can adjust your investment strategy as per market conditions or your changing risk appetite. For instance, SUD Life e-Wealth Royale offers 12 fund switches per policy year at no cost. 2. Top-ups: Many ULIPs allow you to make additional investments over and above your regular premium. 3. Premium Redirection: Some ULIP plans allow you to change where your future premiums are invested without disturbing your existing investments.

The Charges

ULIPs come with various charges, including: 1. Premium Allocation Charge: A percentage of your premium that's deducted before it's invested. 2. Policy Administration Charge: A fixed amount deducted monthly to cover administrative expenses. 3. Mortality Charge: The cost of providing you with life insurance coverage. 4. Fund Management Charge: A percentage of your fund value deducted to cover the cost of managing your investments. 5. Switching Charge: Most ULIP plans may charge for fund switches beyond a certain number per year. It is prudent to check with the insurer about the same.

The Claim Process

In case of an unfortunate event during the policy term, your nominees can file a claim. They typically receive the higher of the sum assured or the fund value. Know that ULIP Plans come with a lock-in period of 5 years, during which you can't withdraw your money. But this lock-in also allows your investment to grow without interruptions, potentially leading to better long-term returns.

The Premium Split

The Investment Process

The Flexibility Factor

The Charges

The Claim Process

The Premium Split

The Investment Process

The Flexibility Factor

The Charges

The Claim Process

01. The Premium Split
02. The Investment Process
03. The Insurance Component
04. The Flexibility Factor
05. The Charges
06. The Maturity Process
07. The Claim Process

SUD Life Savings Insurance Products

SUD Life offers several savings insurance plans to help you build your wealth while providing life cover. Here's a quick look at three of their savings products:

This plan offers higher coverage and is designed for non-smokers.

Life cover ranges from ₹1 crore to ₹2 crores
You can join between ages 18 to 60
Various premium payment options: single pay, regular pay, or limited pay (5, 7, 10, 12, or 15 years)
Policy terms from 5 to 40 years
Exclusively for non-smokers
Available online with additional benefits
Covers you upto age 80

Check Premium

This is a simple term insurance plan that provides life cover for your family.

Life cover ranges from ₹5 lakhs to ₹25 lakhs
You can join between ages 18 to 65
Covers you up to age 70
Choose to pay premiums once, regularly, or for 5 or 10 years
Policy terms from 5 to 40 years
45-day waiting period at the start (only accidental death covered during this time)

Check Premium

Frequently Asked Questions

1. Take Stock of Your Finances

2. Set Clear Savings Goals

3. Allocate Your Resources Wisely

4. Monitor Your Savings Plan

**Know Your Numbers** Unless you are a billionaire, knowing how deep are you in financial waters is the first step towards financial freedom. Keep track of your monthly income, bills, overall debt, and even your hefty stack of petty UPI payments.

How can SUD Life help you with your Savings?

Let’s break it down with examples from all around you –

Case 1
Case 2
Case 3

Case 1: Snigdha, 20 Years Old

Meet Snigdha, a 20-year-old college student in Delhi with big dreams for the future. She's just started earning a part-time income from her weekend job at a startup and wants to start saving for her future goals. Snigdha decides to look into life insurance savings plans as suggested by her senior. She chooses a plan that offers a combination of savings and life cover which she bought for a considerably cheaper premium. Here's how it works for her:

Snigdha starts contributing a small portion of her income to the long-term life insurance savings plan each month bit by bit with whatever she earns.
Over time, her savings accumulate with guaranteed returns, thanks to the savings plan.
And if something were to happen to Snigdha unexpectedly in her policy term, her plan can provide aid to her family, ensuring they're taken care of in her absence.

Features of a Savings Plan

Tax Benefits

ULIPs come with a double tax advantage Premium payments are eligible for tax deduction under Section 80C of the Income Tax Act, 1961 Maturity proceeds are tax-free under Section 10(10D), subject to conditions

Flexibility in Premium Payment

SUD Life ULIPs understand that your financial situation might change over time. That's why they offer flexibility in how you pay your premiums: Regular Pay - Pay at fixed intervals (monthly, quarterly, half-yearly, or annually) Single Pay - Make a one-time lump sum payment

Switching and Premium Redirection

As your life circumstances or market conditions change, ULIPs allow you to adjust your investment strategy: Switch between available funds Redirect future premiums to different funds

Transparency

Gone are the days of mysterious black-box investments. ULIPs offer complete transparency: Regular NAV declarations Detailed fund factsheets Online access to your policy details and fund performance

Steps to Buy a Savings Plan Online

Let us break down how you can buy a savings plan online in simple terms –

Figure Out Your Goals

01.

Do Some Research

02.

Check Out the Companies

03.

Figure Out Your Goals

For starters, think about what you want to achieve financially. Are you saving up for something big like a home or a kid’s aspirations? Or maybe you want to make sure your family is taken care of if something happens to you. Knowing your goals will help you decide how much coverage you need.

Inclusions and Exclusions of Savings Plans in India

When you're considering a SUD Life savings plan, it's important to understand what's included. Let's take a closer look at the key features you can expect

Guaranteed Returns

Many SUD Life savings plans offer you a promise of fixed returns. This could be a lump sum when your policy matures, or regular payouts during your policy term. It's a bit like having a financial safety net – you know exactly what you're getting, which can be reassuring when you're planning for the future.

Life Insurance Coverage

Most SUD Life savings plans come with built-in life insurance. This means that while you're saving for your future, you're also protecting your family financially. If something were to happen to you, your loved ones would receive a payout to help them manage expenses and maintain their lifestyle.

Flexible Premium Payments

SUD Life understands that everyone's financial situation is different. That's why they offer flexibility in how you pay your premiums. You can choose to pay annually, half-yearly, quarterly, or even monthly through ECS or standing instructions. This way, you can align your premium payments with your income pattern.

Tax Benefits

Here's some good news for your wallet – the premiums you pay and the benefits you receive from your SUD Life savings plan may be eligible for tax deductions under current tax laws. It's always a good idea to check with a tax advisor to understand how this applies to your specific situation.

Loan Facility

Life can be unpredictable, and sometimes you might need access to funds. Many SUD Life savings plans allow you to take a loan against your policy once it has acquired a surrender value. This can be a useful option if you need money but don't want to surrender your policy.

HOW TO BUY

How to Buy a Savings Plan Online with SUD Life?

Purchasing a savings plan from SUD Life online is a hassle-free process. Let's walk through the steps together:

Choose Your Channel

(a)Visit the SUD Life website and click on 'Buy Online' or 'Connect with Advisor' for your chosen term plan. (b)If you prefer face-to-face interaction, you can always visit a Star Union Dai-ichi Life Insurance branch.

Request a Callback Buy Now

Documents Required to Purchase a SUD Life Savings Plan

When you're ready to secure your future with a SUD Life savings plan, you'll need to provide certain documents. This ensures a smooth application process and helps us tailor the plan to your specific needs. Here's what you'll need:

01. Application Form

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02. Income Proof

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03. Identity and Address Proof (KYC Documents)

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Additional Tips

Ensure all documents are self-attested.

Provide clear, legible copies of all documents.

If any document is in a language other than English or Hindi, provide a notarized translation.

Keep copies of all submitted documents for your records.

Having these documents ready beforehand can significantly speed up your application process. If you have any questions about the required documents or need assistance with your application, our SUD Life advisors are always here to help.

Connect with us

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1800 266 8833
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Frequently Asked Questions (FAQs)

Life Insurance
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What is Life Insurance?

How is life insurance different from general and health insurance?

Is Life Insurance an indemnity based cover?

Why do I need Life Insurance cover?

How much of Life Cover do I need?

Should you invest in Life Insurance Policy?

What are the types of Life Insurance Products?

Which type of Life Insurance cover suits me/ do I need?

What is a Money back insurance policy?

What is a bonus and how a bonus is calculated?

What are the type of bonuses and when are they paid?

Life insurance is a legally binding contract between the policyholder and an insurance company.
In exchange for the premiums paid by the policy holder, during the agreed Premium Payment Term (PPT) and payment frequency, a life insurance policy ensures financial support to the policy holder and the policy holder’s nominees in case of eventualities.