Why save money

Most plans let you choose whether to receive your money as a lump sum or as regular income. Under the lump sum option, you pay premiums for a pre-determined number of years and then receive a guaranteed lump sum payment at the end of the term. On the other hand, under the regular income option, you pay premiums for a fixed term and then receive either monthly or yearly regular income for the chosen term. The amount to be invested in a plan depends on your goals, current income and several other factors like important milestones and various financial needs.

Hence, there is no one figure that can suit everyone. In order to ascertain the minimum amount of investment required for your financial needs, you should take into consideration your future requirements and the time you have left to plan for them.

Based on those requirements, you can decide on the amount you should invest in your savings plan. The importance of savings cannot be stressed enough. Although it is always better to contribute more to your savings plans, the answer would depend on your current savings pool and needs. If you had started saving from an early age and have built a significant savings amount, you may not need to save more.

On the other hand, if you started saving late, you may have to make up for the lost years by contributing more to your savings plan. Every year an amount called the Guaranteed Addition is added to the policy. Guaranteed Addition GA is equal to the predetermined Guaranteed Addition rate multiplied by the sum of all premiums paid till date excluding extra mortality premiums and taxes.

Goods and Services tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time.

Please consult your tax advisor for details, before acting on above. All rights reserved. Customer helpline number - Timings — A.

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Measure content performance. Develop and improve products. List of Partners vendors. Because everyone has to start somewhere, and if you work at it, your financial situation is likely to improve over time. Saving money is worth the effort. It gives you peace of mind, it gives you options, and the more you save, the easier it becomes to accumulate additional savings.

Later in life, the money thoughts that keep you up at night might center around paying for your kids to go to college or having enough money to retire. The reduced stress from having money in the bank frees up your energy for more enjoyable thoughts and activities. Finding the best savings account is key to making sure that the money that you do put away earns you the highest interest. The more money you have saved, the more you control your own destiny. If you are laid off, it might take as long as two years to find a new job.

So now you actually need more income than before because you'll need to pay down these debts and eventually work to get them paid off. There are huge emotional, psychological and physical consequences to always living stressfully, from hand to mouth, pay cheque to pay cheque.

There is a little known truth that happiness can come from being organized. You have nothing to lose by saving - and only a happier future to gain. If you receive a bonus from work or an income tax refund, use that to get you started or to add to what you've already got set aside. As life happens and you need to dip into your fund, build it back up. It takes a bit of work, but it's a habit worth getting in to.

You may need to create a spending plan to keep you on track. Here's a free tool that has already helped a lot of people. Give it a try! Related Reading - Here are some more resources that may help you:. Budgeting Guidelines Budget Calculator. Saving for Education Saving for a Home. Our Services Accreditations Contact Us. You are here Home. If you need help understanding the importance of saving money, consider these key reasons why you should save money now: 1. Saving provides financial security Sunny skies are the right time to save for a rainy day.

Start an emergency fund with no minimum balance. Start Saving. Online Savings. Online Savings Account. Money Market Account. Certificate of Deposit. Individual Retirement Accounts. Quick Quiz.