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Savings Plan Looking for tax savings investment plans to meet your long-term and short-term financial goals? Understand various investment instruments and saving schemes in India, and then choose the best plan at PolicyBazaar. Best Saving Plans in India There are several types of life insurance policies available in the market. Broadly, there are three categories. Some offer pure protection (insurance), others offer protection as well as investment while some only have investment as their objective. In India, however, life insurance has been used more for investment purposes in ones overall financial planning. The tax savings investment plans help build a large corpus and also beat inflation. We at PolicyBazaar help you compare investment plans offered by all major life insurance companies in India and assist in selecting a plan most suited for you. Though each plan is unique, certain important factors must be kept in mind while selecting a savings investment plan: Risk Profile: It is important to determine ones risk appetite to find the best saving plan. Age and personal factors are important determinants of the kind of risk one can take. Generally, young people in their 20s and early 30s can opt for the higher risk but lucrative return options. They can choose investment plans which are more aggressive – those which invest ones money more in the equity segment of the stock market and lesser in debt. A Unit Linked Insurance Plan (ULIP) is more suited for young customers who are willing and able to take such financial risks. On the other hand, a traditional endowment or a money-back plan is better suited for the needs of a conservative investor, who prefers to have the guarantee of the money being secure even though it generates lower returns. Investment Tenure: Insurance plans offer a mid-to-long term investment horizon and serve as one of tax saving investment options. The ULIPs are very good as they help build up a significant corpus over the life of the policy. The insured party can start with a small premium amount and build it up over the policy tenure. This is possible as most insurance companies understand the fluctuating nature of earnings and savings depending on the age of the investor and provide options where the premium and the investment amount can be increased or decreased as per the persons convenience. Final Goals: One should be clear about the reason for selecting a savings investment plan. The final objectives help in determining the tax saving investment options. Goals range from building a corpus for retirement or having sufficient money for child’s higher education or marriage to building a house. Plan Features: Different plans have different features. The best tax saving investment plans allows one to make partial withdrawals by surrendering a certain portion of the policy while retaining other benefits. Some of investment options have a fixed cover ranging from 5/10 years to 30/35 years depending on what one wants. Others provide cover for entire life. With comprehensive cover and flexible options, one can enjoy protection as well as growth through savings. Some plans also offer bonuses, the amount of which is decided by the insurance companies based on the performance of their investments in the market. Flexibility of the Plan: For long term goals, this plan allows one to take care of unexpected short term needs. They offer the flexibility of surrendering the policy if the situation so demands. However, it is better to stick with the tax saving plan for the longer term so that they give better returns. Charges of the Best Investment Options: Understanding the costs and charges involved is vital when selecting a saving plan in India. These best savings plans have minimum charges and provide flexibility in terms of cash withdrawal, bonus receipt and term of the policy. Also, the long-term effect of these charges ismuch less and makes a tax saving investment plan a great way to increase wealth at low cost. Compare Saving Plans in India Lot of tax saving investment plans in India serve as saving schemes in India or act as savings investment. You can do well to compare from among these best investment plans in India and get the savings investment plans that you need to use as your personalised money saving plan. You can use an investment calculator India to calculate your priorities such as making a tax saving investment along with putting your money in one of the better saving schemes in India.