Follow Your Dreams With An Insurance Savings Plan

Author : omkar surve | Published On : 03 Aug 2021

In the midst of all our financial responsibilities, it is often hard to put aside money for the moments that make life worthwhile. From that special holiday for your milestone 10th wedding anniversary, to the car you have always dreamed of, saving money can often seem to be a tall order. Is that the situation you find yourself in at the moment? If so, you might want to consider opting for an insurance savings plan. An insurance savings plan can help you build a corpus of funds for the future so you can save up for the life you envision living. Let’s learn a bit more –

  • What is an insurance savings plan?

True to its name, an insurance savings plan has two components – savings and insurance. You pay premiums to the plan to create a corpus of funds. You are also covered with a death benefit. Insurance savings plans offer you the option of a single, one-time premium paid as a lump sum or regular premiums paid over the course of time. If you choose regular premiums, you can choose a premium payment term that ranges anywhere between 5 to 30 years, depending on the reason for saving up. For instance, if you plan to buy your dream car in about 5 years, you can choose an insurance savings plan that will mature around that time.

  • How can an insurance savings plan help you?

You may be wondering whether to choose an insurance savings plan or a typical bank savings account to build a corpus of funds for your lifestyle goals. Let’s take a look at each one.

We will begin by looking at a normal bank savings account. With this account, you can put aside sums of money to spend on holidays and other lifestyle needs; however, it may be hard to stick to a goal. You may find yourself slacking off every couple of months. On the other hand, the regular premiums of an insurance savings plan help you stay on track with your commitment to save.

Moreover, a bank savings account does not offer you any form of life insurance coverage. If you suddenly pass away, your savings come to a halt and your loved ones may be left bereft. On the other hand, an insurance savings plan pays out a death benefit to the appointed nominees. This is an added benefit of having an insurance savings account; even if it was opened purely to save for lifestyle goals, you get the assurance that you loved ones will have some financial support if something unfortunate were to happen to you.  

And, that’s not all. These days, you can also find insurance savings plans that give yearly cash benefit payouts. You can also opt to enhance your insurance savings plans with riders that waive premiums if you are diagnosed with certain early/intermediate stage conditions. This way, you do not lose out on the benefits of your plan due to an illness.

  • So, go ahead and dream big!

As we can see, an insurance savings plan truly offers a very convenient and workable way of saving for future goals. Thinking of buying your dream house when you retire? Or, want to support your child’s dreams of attending university abroad? With an insurance savings plan, you can make all these dreams come true…for yourself and your loved ones. Best of all, insurers let you customise your plan’s term to match with your savings goals. Long term insurance savings plans can be useful at helping you build a sizeable corpus of funds. You can choose a term that lasts anywhere between 10 and 30 years, depending on your lifestyle dreams and goals.

For advice specific to your needs and expectations, do speak with a financial consultant. We hope that this article will help you find the most suitable savings plan in Singapore.

All the best!