Guaranteed is a very comforting word, especially when it comes from a credible source. You may have heard this word often in routine conversations, or at the neighbourhood store when the salesman tried selling you an appliance or a gadget. When these verbal assurances are backed by a document issued by a legitimate, reputed authority, it gives you peace of mind that the Guarantor will step in if things go wrong. Simialrly, returns are guaranteed in some of the life insurance plans, and hence, they are known as Guaranteed Savings Plan. Let us understand about the plan in details.
What are Guaranteed Savings Plan?
Guaranteed saving plans are long-term safe investment plans with guaranteed returns. These plans not just offer a guarantee on the maturity value but can also offer protection of your financial goals in case of a mishap.
So, if your life continues without hiccups and you continue to invest your family is assured a specific maturity value. However, even if you cannot be there to continue investing due to early demise, the plan will continue to receive investments. Thus, giving your family the maturity value, you intended even after your death.
Guaranteed Savings Plan and Guaranteed Income4Life from Canara HSBC Oriental Bank of Commerce Life Insurance are two such plans. In this plan, you can choose the premium protection option, which enables the insurer to invest on your behalf if anything happens to you.
When is a Guaranteed Plan your Only Choice?
What do you think of when you visualize your future though? The future is unpredictable despite all the plans you make and dreams you cherish. You aspire to take care of your ageing parents, dream of sending your child to the west and hope to lead a comfortable life with your spouse before and after retirement. Well-wishers advise you to invest in stocks and real estate.
But you hesitate because you do not have the expertise. Also, the returns are unpredictable. You have loads of financial commitments and would like to refrain from taking chances. Any wrong moves can affect your dependent parents, your homemaker spouse, and your little kid.
Here are three such financial goals where you would like all guarantees, especially when it comes to financial matters:
1. Child’s Higher Education Goal
You want your child’s education to continue without any hiccups and interruptions for want of money. Child insurance plans can help you ensure this continuity. A child policy has single purpose-to help your child achieve the goal even if you cannot be there to ensure the same.
If you want to stay away from the stock market, you must invest in endowment plans that offer a guaranteed maturity value. This assures you of the amount you will receive at the end of the term. These policies have a limited premium paying term so that you do not have to keep investing throughout the policy tenure.
For example, if your child is 5 years old, and you buy a child plan of 15 years term, you can opt to pay premiums for, say, 10 policy years, i.e., when your child turns 15. From the age of 18 years, s/he can receive annual pay outs that can help finance undergraduate education.
Also, on maturity, you will get the guaranteed Sum Assured + accrued bonuses, if any. You may use this amount for post-graduate education or marriage.
2. Financial Safety of Spouse
Guaranteed Savings Plan is a comprehensive instrument designed to meet multiple objectives such as wealth creation, insurance cover, and tax benefits. All investments in Guaranteed Savings Plan are deductible, under section 80C, from taxable income. In case of untimely demise, the family gets higher of the following as a lumpsum amount.
a. 11 times the annual premium
b. 105% of premiums paid until the death
c. Sum Assured
This assurance will help you remain stress-free and ensure that your spouse gets a lumpsum amount that should financially secure future expenses.
3. Financial Support for Parents
With increasing uncertainties in health due to unpredictable illnesses worldwide, it is natural to be concerned if you are the sole breadwinner in the family. Your aged parents may also be dependent on you for financial support. The Guaranteed Income for Life is the best monthly income scheme in India if you are looking for an income stream to match a future expense, such as post-retirement. You can choose to invest for a specific period (say 10 years) and defer the pay outs by another 5 years. You can also opt to receive the future regular income pay-outs as a lump sum calculated as the current value of the amount.
The policy also offers some valuable additional features under the premium protection option. Premium protection will financially secure the goal in case of your death or disability within the policy tenure. Some key highlights of this plan:
- Future premiums are waived off in case of untimely demise or permanent disability
- In case of untimely demise, the family will receive the sum assured immediately. The family will receive the fund value at the time of maturity-either in regular income streams or as a lump sum
Guaranteed savings plans are ideal if you are a risk-averse investor looking at a sustainable income flow to support your dependants and achieve your life goals. The best savings policy issued by life insurance companies such as Canara HSBC Oriental Bank of Commerce Life Insurance is reliable because of the brand trust, legacy of operations, and excellent track record.
As you cannot compromise on your financial goals, exploring Guaranteed Savings Plans is the best way forward. Savings plans offered by Canara HSBC Oriental Bank of Commerce Life Insurance are one of the best investment plans in India that give Guaranteed Savings + Insurance Cover + Other Benefits.