Written by : Knowledge Centre Team
2025-09-06
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9 minutes read
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Safety of capital, guaranteed returns, and regular income- what more can you expect from some of the best long-term investments from life insurance companies? Life insurers beat a lot of other traditional investment options when it comes to long-term investments, especially if the task is the preservation of money.
These savings plans from the life insurance companies use the safest long-term fixed-income options to grow your money. These plans are the best when it is about a goal that is as important as the future itself, such as your child’s higher education plans, marriage goal, etc.
Key Takeaways
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- Know Your Risk Appetite: Evaluate your risk appetite before investing in a savings plan. You may want to avoid high investment risk for financial goals like a child’s higher education or short-term goals like building a home soon. Your risk capacity for investment is higher under the following two circumstances:
- You are young, i.e., below 45 or even 50
- You have ample time to achieve your goal, i.e., 10 years or more
If these conditions are true for your investment goal, you can choose a Unit-Linked Insurance Plan or ULIP to boost your growth potential using equity funds.
Otherwise, or when you are not comfortable linking your money with the market, you can invest in guaranteed savings plans. These plans offer a guaranteed return on your investment, completely safe from market movements.
You also have the option of taking a middle path. ULIP plans also give you the option to invest in debt funds. These funds do not offer a guaranteed return. However, they do offer:
- Safety of capital
- Steady growth over the long term
So, you can enjoy the safety as well as the market-linked yet steady growth of your investment.
- Check the Liquidity of the Plan: Liquidity is an important factor to consider in a long-term investment. Liquidity allows the investment to support you in case of an emergency. However, too many liquid investments may hamper your growth prospects.
So, there has to be a balance of growth and liquidity. Guaranteed savings plans are less liquid. However, after a few years of investment, you can borrow from the plan or against the policy’s cash value.
ULIP plans, however, will allow partial withdrawals of accumulated money after the lock-in period of five years.
- Understand the Policy Term and Features: The policy term is the maximum period for which your savings plan will remain active unless one of the following happens:
- A death claim is filed and settled on the policy
- You surrender the policy
If you have chosen the goal protection option under these savings plans, only the life cover stops existing after a death claim. The investment part continues to grow for the full policy tenure.
Other features you need to understand about the savings plans are:
Premium payment tenure: Pay all the premiums due within this period. ULIP plans may accept investments even after this period, but other savings plans may not.
Automatic Portfolio Management: This is a feature of ULIP plans, which helps you manage your portfolio passively if you invest in equity funds.
Goal or Premium protection option: This feature allows for the investment part of the plan to continue even after your death. If premiums are due, the insurer pays them on your behalf, and your family receives the maturity value as you intended.
Accidental disability benefit: Few savings plans will also allow accidental disability benefits, where you can continue the policy without paying further premiums in case of a severe disability. Or, you may receive financial support from the plan.
- Review & Diversify Your Portfolio: Portfolio diversification is an important step to maintain a healthy portfolio. Also, your risk appetite and profile keep changing as your life progresses. So, you must revisit your portfolio asset allocation once in a while.
Your overall portfolio can follow the ratio given below:
| Age | High-Risk (Equity) | Low-Risk | Liquid |
|---|---|---|---|
Up to 30 | 70% | 10% | 20% |
30 – 35 | 60% | 20% | 20% |
35 – 40 | 50% | 30% | 20% |
40 – 45 | 45% | 40% | 15% |
45 – 50 | 40% | 45% | 15% |
50 – 55 | 30% | 55% | 15% |
55 – 60 | 20% to 0% | 70% - 80% | 10% - 20% |
Otherwise, you can also follow the automated portfolio management feature of ULIP saving plans. This feature will adjust your portfolio automatically as you age and your investment nears maturity.
Understand the difference between portfolio management and financial planning.
Why Choose Savings Plans by Canara HSBC Life Insurance?
Within a short period, Canara HSBC Life Insurance has built a portfolio of savings plans with above-average performance and modern features.
The insurer boasts of the following statistics as of the financial year 2024–2025:
15,700+ Branches
₹400,127.4 Crores Assets Under Management as per 31st December 2025
99.43%^ Individual Death Claims Settled in FY 2024-2025 (Claim Settlement Ratio)
You can easily start investing in the company’s top savings plans online. These plans help you keep your money disciplined, which is one of the prerequisites for better growth and long-term wealth. You can automate your savings to go to a savings plan regularly without your intervention. The best savings plans reward you for investing for the long term
The longer you stay invested, the better the growth.
Wrapping Up
Saving money is just the beginning; how and where you invest it decides your financial future. A reliable savings plan not only helps you achieve your long-term goals, like your child’s education or a dream home, but also protects your capital and offers stable returns.
By evaluating your financial needs, risk appetite, and policy features, you can choose a plan that grows with you. Whether you prefer guaranteed returns or market-linked growth through ULIPs, your savings plan should match your life stage and financial goals.
Canara HSBC Life Insurance offers modern, flexible, and performance-driven savings plans to help you stay disciplined, build wealth, and secure your future.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
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Our Top-Selling Insurance Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Save, Dream, Plan. Live Peacefully
iSelect Guaranteed Future Plan
- 4 plan options
- Guaranteed Maturity Benefit
- Premium Protection Cover
- Tax Benefits
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