From a young age, we are taught the importance of saving for the future. The last few years of the COVID-19 pandemic has also made us realise how unpredictable life is and put more emphasis on our savings habit. If you are looking to grow your wealth for your future, then an insurance savings plan would be the best option for you. An insurance savings plan is a long-term or short-term financial strategy that will help you save for your future needs such as retirement or educational expenses.
Here are some of the features of a savings plan to help you kick-start:
· Flexibility:
One of the main features of an insurance savings plan is flexibility. These plans are designed to make sure they adapt to your financial goals and circumstances. You can choose to start contributing to a savings plan at any time or adjust your contributions according to your changing income levels. There are some savings plans that allow partial withdrawals making it easier for policyholders to access their savings in case they need them. This is a great feature and can help you in case of emergencies.
· Tax benefits:
There are tax benefits attached to your insurance savings plan. Tax savings is an important and highly beneficial part of a savings plan. Singapore has a low tax rate and offers tax incentives for those who save for their future. The interest earned on savings plans are not subjected to tax, making it a tax-efficient way to save. These tax benefits can help you save more money in the long run.
The main object of an insurance savings plan is to help you reach your short or long-term goals. However, if something were to happen to you, you want to make sure your family is still able to meet these goals. Insurance savings plan offer a range of protection to safeguard your savings. Some plans offer a guaranteed minimum return but it can also include insurance coverage for disability, critical illness or death. Listed features of a savings plan, you can ensure that you have the financial resources you need in order to reach your long-term goals.
