People with low incomes often lack savings opportunities. They tend to rely on loans. Loans and savings are, however, not mutually exclusive; a combination may well be appropriate.
Even small savings help stabilizing the cash-flow of the family and help protecting against small financial shocks. Regular payments will enforce monetary discipline and is usually quite welcome. The term of the savings process is open, but should be at least 3 years. Limitations to withdrawals usually apply.
The savings goal or a multiple thereof are defined as the sum insured to be covered under a life insurance.