The Dynamic Duo of Savings and Term Insurance: What Works for You? 🛡️💰

Navigating the world of life insurance is like picking the perfect outfit for a wedding party - tricky, but oh-so-important! Should you go for the glitzy savings insurance gown/ (tuxedo for the gentlemen) or rock the classic Term Insurance sari /(kurta for the gentlemen)?

Let's turn this decision-making into an interesting game, with a breakdown that will make you the star of life insurance! 

Set the Financial Dance Floor  🕺💃

First things first, let's groove to your financial goals beat. Are you saving up for life's events like wedding or buying a car or ensuring a lifetime of financial cover for your loved ones? Both savings and term insurance plans cater to different financial objectives. So, check out our Find Your Plan calculator to get the insurance plan that suits your rhythm.  

Savings Insurance Plans 

Core benefit: The dual dance- Savings insurance plans are like doing the tango with zero risks. Not only do they give returns on your savings, but they can provide life cover to a customer’s beneficiaries in the event of their untimely demise. 

Payout: Picture this - a guaranteed lump sum payout at the insurance prom, a.k.a. maturity.  If the insurance buyer dies before that tenure, their beneficiaries receive a payout that is almost 11X of the annual premiums paid. Some plans also pay the benefits as regular income for a fixed number of years after maturity.

Maturity: The tenure for a savings insurance plan can vary according to the plan. It could be anywhere between five to 20s and beyond. Savings insurance plans are your financial dance partner for all the big moments and saving goals- be it your child's wedding or the ultimate home renovation fiesta. 

Bandhan Life’s iGuarantee Max Savings Plan offers interest rates comparable to (or even better than) fixed deposits or other guaranteed savings products. With affordable premiums you can save for your specific goals and create a nest egg that gives you the comfort of guaranteed returns.  

Term Insurance Plans

Core benefit: Term plans not only offer a front-row seat to high payouts at low premiums but also throw in the option to add riders for some extra protection from life risks like accidental death or critical illnesses and save tax on them.  

Payout: Term insurance is the rockstar dedicated to protecting your family's financial concert after the death of the primary breadwinner. The payouts are the VIP pass for your loved ones, much higher than other insurance plans since it acts as an income replacement after the policyholder’s death. Not sure how much life cover you need? Our Insurance Need Calculator will help you out.

Term and maturity: The ageless jive- Start the term insurance party early to lock in those low premiums. There are no maturity benefits in a term insurance policy. The sum assured can only be claimed by your nominee after you are gone. Some term plans like iTerm Prime have introduced a unique feature where you can get all your premiums back after a certain age.

For instance, if you buy this plan before age 40, you can choose to get all your premiums back at age 55 under the ‘Special Exit Value’ feature.    

Key Takeaways: 

Term insurance is your backstage pass to financial security, while savings insurance is the flashy dance partner that brings both savings and life cover to the party. Both these plans will give you tax benefits under Section 10 (10) D and 80C as per prevailing tax laws. 

Think of your financial portfolio as a cool mixtape, include both these products in your financial portfolio. Together, they will strengthen you financially and offer security to your family. So, plan wisely, and let this financial duo work their magic.