Savings is an essential component of a business cycle. While it’s crucial to build business capital, its also germane to expand your businesses.
While there are several avenues of building one’s savings, doing this through life insurance savings plan seems the best. This is because, asides your contributions, you also get some leverage of life insurance coverage and sum assured that it is ten times bigger than the premium paid.
Savings insurance plans are a type of life insurance that offers the opportunity to build and safeguard funds for your future. It helps you and your family to meet financial goals of both short and long terms. These investments are organised and disciplined to achieve your financial goals.
Need To Save Through Insurance Scheme
Being a life insurance product, savings plans have numerous life insurance benefits such as: death benefits, tax benefits, terminal ailment benefits, and so much more.
To ensure financial security and good returns by selecting a plan suited to your needs, it is advisable to know the crucial features while investing in savings plans. Savings plans such as endowment plans, offer guaranteed maturity benefits along with bonuses as life insurance benefits. In addition to yielding fixed deposit, they build safety cushions to cover the insurance risk with added riders.
Money back plans provide dual benefits of insurance and redeeming of money at regular intervals. These plans are meant for those who require money to meet short or long-term needs, such as to buy a house or car.
Edge Over Other Forms Of Savings
Regardless of the life stage and financial goals, it is crucial to invest in savings insurance plans.
As a matter of fact, you can grow your cash 6-8% on average annually, compared to a measly percentage growth in your savings account. That is many times more growth and much more wealth in your retirement future. Therefore, a permanent life insurance policy covers more bases and still offers the savings benefit.
Most life insurance companies in the country have this savings plan. For instance, Old Mutual Nigeria Limited launched one of these products last year, that allows an individual save as well as obtain life cover of up to N1 million.
According to the executive head, Marketing and Customer Experience, Mrs. Alero Ladipo, her firm launched the Short-Term Savings Plan in Nigeria, to further support individuals, families and small businesses in achieving and protecting their goals.
She says the plan allows for a minimum monthly savings contribution of N5, 000 which can be increased annually, adding that the plan has a dynamic feature that allows policy holders withdraw up to 50 per cent of saved funds during the savings tenure, as well as keep track of their balances to ensure goals are being met.
“We believe this product is timely for Nigeria today. There is a need for financial institutions to encourage customers towards the meeting of their goals,” she added.
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