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5 Reasons to Invest in Guaranteed Income4Life Plan

dateKnowledge Centre Team dateMay 28, 2021 views137 Views
Guaranteed Income4Life Plan | Buy Best Savings Plan

Income is one of the goals which take the major chunk of our personal effort and time since birth. Then again, if you are to rely only on your earning capacity for this income, you will find yourself earning only for a limited time in life. That is unless you start saving and investing your money for growth and income safety. A lot of smart investors consider putting their money in saving plans that offer life cover along with an avenue for the growth of investment.

When you start earning, your savings make up a small part of your financial life. However, after sometime this trickling water should accumulate and form a larger pool. It is this pool that should provide you with a reliable alternative source of income.

When your financial pool grows large enough to replace your income from the profession, your income safety is guaranteed.

Guaranteed Income4Life Plan | Buy Best Savings Plan

Figure: Your Journey from being dependent on the income from job or profession to being independent

Why Should you Invest in Guaranteed Income4Life Plan?

Here are five important reasons for you to invest in the Guaranteed Income4Life plan from Canara HSBC Oriental Bank of Commerce Life Insurance:

#1 Guaranteed Regular Income

The regular income from the plan which starts at maturity is guaranteed for the chosen period. For example, you can choose an income pay-out period ranging from 10 years to a lifetime, i.e., until you reach the age of 99.

#2 Limited Premium Pay Option

The plan does not need a long-term investment commitment from you. Regardless of the tenure of the plan you can choose a shorter premium payment (investment) period as per your convenience.

The premium payment period for the Guaranteed Income4Life plan can range from five years to 12 years depending on the maturity period of the plan.

#3 Acts as a Retirement and Pension Plan

You can use the guaranteed income pay-out feature of this plan to enhance your pension income after retirement. What more, the income can continue for your surviving spouse until your age reaches 99 even after your natural death.

#4 High Sum Assured

The plan offers a large life cover amount for your family along with the other benefits. The sum assured can be as high as 11 times the annual premium of the policy. Thus, providing an effective umbrella of safety from contingencies to your loved ones.

#5 Tax Benefits

The premiums you pay for the plan is deductible from your taxable income for the year under section 80C. You can claim a deduction of up to Rs. 1.5 lakhs under this section of the Income Tax Act.

Features of Guaranteed Income4Life Plan

Guaranteed Income4Life plan as the name suggests is a safe investment option to ensure a regular income from your accumulated money. You can invest in the plan at a pace convenient for you and decide when you want to receive the income from the plan.

Some of the prominent features which make this plan an attractive choice for income generation are:

  • Safe investment: Zero market risk. Your investment only grows as the plan invests only in the safest corporate and government debt instruments.
  • Long-term investment: You can continue this plan for 5 years to up to 99 years of age
  • Flexible investment option: You can invest in this plan in a single instalment, or with regular sums over multiple years
  • Flexible income option: You can select an income start date, length and frequency in this plan.
  • Buy completely online: In today’s environment of COVID, you would want to avoid travelling to different offices. And you can buy this plan completely online.
  • Guaranteed Income4Life Plan | Buy Best Savings Plan

The plan also provides you with the following safety features to protect you and your family from the impacts of unforeseen mishaps:

  • Life Cover: Available to your dependents in case of your early demise

    Understand how Guaranteed Income4Life Plan acts as a financial safety net.

  • Premium Protection Option: Continues the investment part of the plan after the payment of the life cover amount. This option will help your dependents meet their life goals even if you are gone before fulfilling the same.
  • Accidental Total & Permanent Disability: This option will continue the life cover and investment benefits of the plan without requiring additional premiums. This benefit covers your family’s financial goals if you suffer from a permanent loss of limbs due to an accident.

How to Ensure a Large Financial Pool?

Saving money to build a large enough pool for a secure income is only half the step. The second half is to invest the money in such a way that it is:

  • Growing more than inflation and taxes
  • Protects you financially in case of a mishap
  • Available to your dependents after you

Most of the investment options allow you to meet only one of these three objectives. While you should have a mix of instruments to enjoy better growth on your money, the last two are also important.

Guaranteed Income4Life plan from Canara HSBC Oriental Bank of Commerce Life Insurance helps you to achieve the three goals at the same time.

How to Choose the Best Savings Plan for your Needs?

Two factors that should be your primary concern while selecting the best savings plan for your needs are:

1. Plan Benefits

2. The past performance record of the life insurer

While we have already seen the three types of benefits the best savings plan should offer – growth, financial safety in case of a mishap and financial safety for the family.

The second aspect about the life insurer will include looking through the following stats for the insurer:

  • Claim Settlement Ratio: This shows how quickly and efficiently the insurer had been settling the death claims for life insurance policies. A ratio of above 95% is good.

    Learn why should you consider claim settlement ratio while buying a life insurance plan.

  • Solvency Ratio or Insurer’s Credit Rating: Solvency ratio or an A+ credit rating for the insurer means that the insurer is financially strong and can honour the investments in the rough market as well.
  • Persistency Ratio: This ratio draws a picture of the insurer’s customer engagement activities. An insurer with happy and engaged customers can easily boast a higher investor retention rate (persistency rate) over the years.

Thus, you can compare the stats between two insurers offering seemingly similar benefits on their best savings plans.

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Frequently Asked Questions

How Savings Plans by Canara Help You?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Who should invest in a Savings Plan?

Savings plan require you to invest a pre-decided amount on a regular basis. People with a regular stream of income who require a lump-sum amount after a period should opt for a savings plan. Working professionals, self-employed people and businessmen should consider a savings plan to meet their long-term financial obligations. Savings plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

What is saving plan?

A savings plan is likely to be different for everyone depending on the financial goal, risk profile, returns, and investment horizon. If you are young and want to save for your retirement, ULIPs like Invest 4G or Titanium Plus plan would be the best option. You are likely to create a large corpus by your retirement through market-linked returns. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

How much money should you put in savings each month?

The amount that should be invested in a savings plan each month depends on the income, existing financial obligations and the long-term financial goal. If you have a steady income, you should save at least 20% of your monthly income. It is not necessary to invest your entire money into a savings scheme as investments should be diversified. Ideally, you should aim to have a financial buffer of over 10 times of your annual income.

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The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement.

Saving plan for future

The Smart Goals plan with its unique features such as modification of the sum assured partial withdrawal and fund switch can help you plan for your long-term financial goals.

Saving plan for girl child

The Future Smart unit-linked plan from Canara HSBC Oriental Bank of Commerce Life Insurance is the ideal savings plan for the girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having a suitable savings plan in your portfolio is extremely important. It ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a good age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the capital gets adequate time multiply. Even a small amount invested for a long time can give substantial returns due to compounding.

Tax Saving Investment for retired mother

Savings plans are tax-efficient investment instruments. Samridh Bhavishya traditional savings scheme designed to ensure regular income after retirement is the best savings plan for retired mothers.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. Saving plans offer a host of features that may help you build your retirement corpus. Some of the saving plans like Guaranteed Income4Life offer guaranteed returns at policy maturity. Such returns can act as a regular income stream even after your retirement to help you stay financially stable.

Are saving plans beneficial for managing unexpected expenses?

Yes. Best saving plans in India offer partial withdrawal system that can be utilized during your rainy days. Being financially prepared to tackle such odds will help you manage any unforeseen expenses in a smooth manner.

How to save tax by using savings plan?

Saving plans are known for helping us achieve our financial goals. Best saving plans allow you to grow your wealth while providing life cover. Saving and investment plans are also beneficial for tax planning. Premiums of savings cum protection plans come with tax benefit under Section 80C of the Income Tax Act. Moreover, proceeds received upon the death of the policyholder or upon the maturity of the policy are tax free under Section 10 10(D).

What is the right age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested for a long time can give substantial returns due to compounding.

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How a savings plan can help in building your child’s education fund?

Saving plans help in building wealth over time against the investments that you make. Choose the best savings plan to build an education fund for your child. The best saving plan for kids offered by Canara HSBC Oriental Bank of Commerce Life Insurance eases the stress of planning your child's future by providing a lump-sum payout on the investment.

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How Savings Plans by Canara HSBC Oriental Bank of Commerce Life Insurance can help you?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Read More
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