Savings Plan
Savings Plan: Mistakes to avoid
Savings Plan guide: mistakes to avoid.
These are the errors we most often see. Avoiding them can save money and protect claims.
❌ Expecting market-like returns from guaranteed plans
Guaranteed plans trade return for certainty.
❌ Treating illustrated bonuses as guaranteed
Illustrations at higher rates are not promises.
❌ Using savings plans as the only life cover
Cover is limited compared with term insurance.
❌ Stopping after a few years
Surrender early and you may get back far less than you paid.
❌ Not reading the benefit illustration
The illustration shows what is guaranteed and what is not.
❌ Buying ULIPs without understanding risk
Fund values fluctuate.
❌ Ignoring inflation
A fixed maturity amount buys less each year.