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 –

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