Savings Insurance: Which Option Offers the Best Tax Benefits and Returns?
Looking to buy savings insurance in 2024? Many are beginning to set aside funds for retirement but aren't pretty sure how to start. Saving isn't new; most of us began with piggy banks, bank accounts, or funds held by parents. As adults, we may have invested in stocks or mutual funds. However, one lesser-known option is savings insurance, which not only provides returns but also increases financial security for the future and offers tax deductions. Let’s explore more about savings insurance!
1. What is a savings insurance policy?
2. Is saving through a savings insurance plan a good idea?
3. Which savings insurance is best in 2024?
4. Who is savings insurance suitable for?
5. How is savings insurance different from a unit-linked policy?
6. Easy tips for saving on your own
1. What is a savings insurance policy?
Savings insurance is a common term for an endowment life insurance policy that provides both life coverage and savings benefits. It allows you to save money in the form of life insurance, helping you build a financial reserve for the future. Policyholders receive benefits during the policy term or upon surviving until the policy’s maturity, based on the policy terms. In the event of the policyholder’s death during the coverage period, the beneficiary will receive a claim payment.
2. Is saving through a savings insurance plan a good idea?
Saving money, in any form, is beneficial. However, saving in a way that offers multiple benefits is even more rewarding. The key is to choose a plan that matches your needs and lifestyle.
For instance, saving through a bank account offers high flexibility, allowing you to withdraw funds anytime, but the interest rate is usually low.
Opting for a savings insurance policy provides more benefits, including savings, returns, and added life coverage as you will get savings, returns, and added life insurance. The advantages of savings insurance policies include:
- The flexibility to choose the premium payment period and benefits that suit your preferences.
- Life coverage that ensures your savings can be passed on to your loved ones in case of unexpected events.
- Encourages disciplined saving, ideal for those with a goal to accumulate a lump sum by the policy’s maturity.
- Savings insurance policies or endowment life insurance can be used for tax deductions of up to 100,000 Baht per year.
Thus, savings insurance is an excellent alternative to traditional savings methods.
3. Which savings insurance is best in 2024?
If you’re looking to start financial planning for yourself or your loved ones in the future, but you’re unsure which savings insurance policy suits you best, here are some tips:
For example, if you prefer a short-term savings insurance policy, look for one with premium payments of no more than 5 years. If you want lower premiums, opt for a policy with a longer premium payment period. Here are simple tips to choose the best plan for you. Calculate the total premiums paid over the policy term and compare it to the total payout you will receive. Subtract the two amounts to evaluate the returns. Also, consider the sum insured, as some policies with the same premiums may offer different sum insured amount. Assess your financial capacity to ensure the premiums won’t become a financial burden. All types of savings insurance are worthy. You just have to choose the one that best suits your needs. You can choose the most suitable type by considering:
- Whether you prefer short-term or long-term premium payments.
- Whether you want cash bonus during the policy term.
- How much you prefer for the maturity benefit.
Muang Thai Life Assurance offers a variety of savings insurance plans with diverse coverage options to meet your needs.
4. Who is savings insurance suitable for?
Savings insurance is ideal for individuals who want to save money and to receive life coverage. It suits those looking for returns that can be used in the future, such as for retirement funds or financial reserves.
5. How is savings insurance different from a unit-linked policy?
For those unsure whether to choose savings insurance or a unit-linked policy, it's important to understand the key differences. In traditional life insurance policies, the premium you pay is divided into three parts: life coverage, operational costs of the insurance company and savings or investment. Savings Insurance primarily focuses on the savings or investment portion to achieve targeted returns, with lower emphasis on life coverage. Unit-linked policy allows customers to determine the proportion of life coverage and investment according to their preferences. Additionally, the investment portion can be directed toward mutual funds pre-selected by the insurance company. Unit-linked policy offers higher potential returns, but it comes with the risk of return fluctuations, which policyholders must manage themselves.
6. Easy tips for saving on your own
For those who find it hard to resist their impulses and often indulge in their desires, it might be time to realize that without proper planning, there may not be enough savings for retirement. To start, try planning your expenses with these steps:
Track Your Income and Expenses
Keeping a record of income and expenses helps you understand where your money is going. It may reveal unnecessary spending and allows you to plan your future finances effectively.
Set Aside Emergency Savings for Unexpected Events
Life is unpredictable, and emergencies can arise at any time. It’s essential to have an emergency fund ready. Ideally, save an amount based on your regular monthly expenses to ensure you can handle tough times without financial stress.
Simple Ways to Save on Your Own
Once you understand the benefits and suitability of savings insurance, consider these easy ways to save money without disrupting your daily life:
- Save as soon as you get paid: When your salary or a lump sum comes in, calculate your expenses and set aside a portion for savings first.
- Keep some extra cash in your account: Having some extra money in your account provides peace of mind for unexpected expenses without worry.
- Think before you buy: Control your impulses by asking yourself whether the purchase is truly necessary or urgent.
- Set savings goals: Setting clear savings goals can motivate you to save consistently.
- Save all your 50-Baht bills: This popular trend helps you save effectively, but it requires self-discipline to avoid spending the saved bills.
- Save spare change: Even with the popularity of digital payments, some cash transactions still occur. Collect your small change and deposit it into a piggy bank.
- Look for ways to grow your money: Relying on a single source of income, like a salary, may not be enough. Explore additional income opportunities such as online selling, investing in funds or stocks, or purchasing savings insurance.
By starting to save today, you can secure your financial future without worry. Even if you’re a big spender, savings insurance can support you. It offers both life coverage and the opportunity to earn returns. Plus, the premiums you pay won’t go to waste if you complete the policy term, and you can enjoy tax deductions of up to 100,000 Baht annually. Choose:
✅Muang Thai Smart Link Pro 10/1 (Global): single premium payment, not a long-term
burden
✅ Muang Thai Smart Link 15/3 (Global): Enjoy 3-year premium payments
(For more information, click.)
✅ Call Tel. 1766, available 24/7.
✅ Contact life insurance agent or Land and Houses Bank branches.
- Coverage conditions are as specified in the insurance policy.
- It is a form of saving in the form of life insurance.
- Premium is eligible for personal income tax deduction. This is subject to the Revenue Department.
- Please study details of coverage, conditions, and risks before making a decision to purchase insurance.
Source: Retrieved on 04/06/2024
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