Ever since the COVID-19 pandemic hit the world, a lot of individuals were seen struggling to survive and afford even basic necessities. Moreover, as experts already suggested the indication of the third wave in India, the situation is more alarming than ever.
What’s even worse, the newer variants are said to be much more lethal and can be extremely uncontrollable without proper management. A lot of people affected with COVID-19 experience difficulty in breathing and require ventilator support to live. During these difficult times, a savings plan is a must for every family.
However, there is a sure-shot way to combat the virus and get treatment without having to experience a hefty financial burden by seeking someone else for monetary support – a savings plan. It helps you prevent falling into debt and allows you to receive any kind of treatment without any hassles.
What is a Savings Plan?
A savings plan is a type of life insurance policy that allows you to save and accumulate your wealth to tackle any unforeseen event that takes place in the future. These plans are developed specifically to help you build a consistent habit of savings and offer returns when they’re needed the most.
With a good savings plan in your portfolio, you can fulfill all those requirements that demand monetary support and can also prepare for any unwanted event that may take place in the future such as being diagnosed with a critical illness.
On top of that, these plans also offer you insurance coverage that helps you secure the future of your family by providing a lump-sum benefit to your preferred nominee in the event of your unfortunate demise.
How Savings Plans Prevent You from Falling in Debt?
While there are a lot of benefits offered by savings schemes, some of those are directly aligned to prevent you from falling into debt. Moreover, through consistent wealth accumulation, you can easily bear treatment charges without depending on anyone.
1. Offers Guaranteed Returns
As savings plans are essentially life insurance products, they are not linked with any market-related financial instrument. That’s why it assures guaranteed returns on your investment, unlike other schemes that may carry a certain level of risk based on your investment preferences.
With a savings plan, you can always have peace of mind by knowing that your principal capital is completely safe from the volatile conditions of the market. Yet, you’ll still be able to gain good returns from your investment.
These guaranteed returns can prove to be very helpful in assisting the costs associated with a medical emergency as you can always live stress-free knowing that you already have sufficient funds to facilitate your treatment costs.
2. Works As Loan Collateral
The best thing about a savings scheme is that it can also work as collateral for banks to take loans against the value of your policy. In case of any emergency that requires the sudden need for capital, this feature can prove to be very handy.
As life always carries a risk of unprecedented events, you may never know what could happen next. By investing your money in a savings plan, you can always stay prepared to fight such uninvited situations through monetary resources.
Nearly all the major banks accept these plans as a form of collateral to provide you a loan. It also makes sure that you won’t have to use your physical assets such as property or car for immediate financial help and prevents you from degrading your lifestyle.
3. Covers Risk of Death
Even when the vaccination for COVID-19 has started being distributed in India, a lot of people are still getting affected and dying every day. With a savings plan in your arsenal, you can gain coverage for your life that helps your family financially in the event of your unfortunate demise.
With that said, in case you get affected with coronavirus or any other disease and couldn’t fight your way out of it, your family will still be able to manage their day-to-day expenses through the death benefit offered by these plans.
Additionally, the plan also offers regular payouts that allow you to fulfill both your major and minor requirements, regardless of whether it is related to a crisis or not. All in all, these plans ensure all-around financial security for you and your family.
4. Provides Personalization Options
As every individual’s life is different, their priorities and requirements also vary greatly. With a savings scheme, you can easily take care of your personal preferences using the various flexible and personalized options provided by these plans.
From a variety of fund options for investment to ranging terms of payout and premium payments, these plans can be customized heavily to align with your financial priorities. Not to mention, this exceptional level of flexibility also helps during the time of crisis.
For instance, if your family’s health history involves any kind of critical illness, you can customize your savings plan in a way to help in the event of you getting affected with the same disease. This’ll allow you to gain quality treatment without getting involved in debt.
The recent situation has brought an evident change in people’s lifestyle and it’s certainly not possible to live a disease-free life in such times. This calls for the need to prepare for the uncertain by investing in a proper savings plan.
Through a good and carefully chosen savings plan, you not only offer financial security for your family’s future, but also accumulate funds for hospitalization costs that you might incur soon, and allow you to gain quality treatment from well-reputed hospitals.
Therefore, it also prevents you from falling into the debt trap by making you self-reliant enough to bear medical exigence charges on your own, without having to depend on someone else to help you financially.