While making a financial investment, it is always best to make it a calculative investment so that it will suffice for future financial goals. The savings insurance plan is a popular savings plan option for many individuals in India today. It provides a life cover for the policy tenure and a guaranteed return as the maturity benefit.
But how to determine the guaranteed returns required from a savings insurance plan?
Here are a few pointers to help you make the right calculations on the guaranteed return plans.
Determine The Financial Goals
The savings insurance plan provides guaranteed returns as a maturity benefit. It is a secure investment similar to the benefits provided in the various savings schemes in India. Therefore, it is important to find the financial goal to calculate the necessary funds to accomplish it.
For example, your financial goals can be purchasing your dream car after five years, paying for your child’s higher education after ten years, starting a new business after 7 years, etc.,
Calculate The Financial Requirement
Based on the financial goals, determine the funds required to accomplish them long-term. It can be calculated based on the current trends and cost by incorporating the inflation rate to determine the future cost to an approximation.
As the returns are guaranteed in the savings plan, you can calculate this financial requirement to determine the guaranteed returns required during policy inception.
In addition, you can determine the premium for accumulating the required guaranteed returns by considering the savings policy tenure, which is the basic timeline required to accomplish the respective future financial goals.
Consider The Essential Factors
While determining the guaranteed returns and the premium to accumulate them, it is important to consider the various personal and family financial commitments. Therefore, the accumulated fund should be a manageable goal, not forcing you to save a higher proportion of funds regularly affecting your routine lifestyle and family financial obligations.
Use The Savings Calculator
While calculating the current cost and the inflation rate for the funds required to accomplish future goals is challenging to do manually, the online savings calculator can be of great help. For example, when you purchase the Tata AIA policy, you can utilise their savings calculator or the online life planning tools.
It is a simple and easy-to-use online tool that can help determine the guaranteed returns required from your guaranteed return insurance plan. In addition, it helps you find the premium required to ensure guaranteed returns. The tool requires you to input a few parameters, such as your age, annual income, investment goal, policy tenure, marital status, etc., to help calculate the required guaranteed returns.
As the tool is flexible, you can revise your decisions by changing the input parameters based on the result to determine the most affordable plan that will suit your investment. For example, you can change the policy tenure or the premium payment mode considering your income and lifestyle to validate if the guaranteed returns will suffice for your requirements and are affordable for the long term.
In addition, you can find guaranteed returns based on the choice of payout options, such as the lump sum or the regular income. Therefore, the online savings calculator is a cost-effective and flexible online tool that helps you determine the guaranteed returns from the savings insurance plan and decide on the premium and the features to customise it based on your needs.
Determining the guaranteed returns required from the savings insurance plan can be simple if you have defined your financial goals and the timelines to accomplish them. Then, based on the goals, you can determine the cost to fulfil them, considering the inflation rate. And if the calculation becomes arduous, you can always use the online savings calculator to calculate the required returns by providing a few input parameters. It is a simple, easy-to-use, flexible tool online. Make calculative investment decisions to make your guaranteed return plans more effective and beneficial.