Planning To Buy A New Home In A Few Years? Here’s How An Insurance Savings Plan Can Help!

If you are planning to buy a house in the near future, you are aware that you need a substantial amount of savings for it. Now, putting aside funds from your salary into a bank account may not suffice. After all, you have many other responsibilities that come your way. An insurance savings plan can prove helpful here. You can make use of this plan to build your wealth, helping you to fund your dream home.

Wondering how?

Let’s take a look at what an insurance savings plan is and how it can help you.

How does an insurance savings plan work?

An insurance savings plan lets you build up your savings over the plan’s term. You pay premiums which accumulate returns. You can sometimes expect an interest rate of 3% or even 4.25% on an insurance savings plan. This way, you can expect higher returns than what you normally would with a regular bank account. Higher returns give you a much larger scope for saving the funds you need for the home you want to buy for yourself and your loved ones.

Features of an insurance savings plan

There are many more features of an insurance savings plan that make it a great way of saving up to buy a home, or even fund for other financial goals (children’s education, vacation, etc). Let’s look at some of these features –

• Choice between single and regular premiums

When you take an insurance savings plan, you get to choose between single and regular premiums. This choice really helps you choose how you want to save as per your existing financial obligations. For instance, in your 20s, you may have fewer financial responsibilities and can thus put aside larger sums of money. You may then want to consider creating a savings plan with a single premium or a shorter period of regular premiums (perhaps 5 years). When you get married a few years later, you are already done with your premiums and your plan is already accruing interest.

• Death benefit

If something unfortunate happens to you prematurely, your loved ones get a payout that can help provide them with some financial protection, such as sustaining their standard of living and even help pay for the home mortgage. As death coverage is usually not a key component of an insurance saving plan, minimal coverage is expected.

• Capital guaranteed upon maturity

You may wonder what kind of security an insurance savings plan has to offer. If that is the case, you will be glad to know that leading insurers in Singapore offer capital guaranteed upon maturity. This way, you know you will get a lump sum return of the premiums invested once your plan matures.

• Customisable plan term

You can choose the term of your plan so that it matures just in time for your goals. For instance, if you envision buying a home 10 years down the line, you can choose to have your plan mature around at that time.

Please reach out to a financial consultant for any help you might need in figuring out the right insurance savings plan for your needs. They can help you make the right decisions based on how much you need to save for your dream home.

We hope that this blog has been an insightful read for you today. All the best!