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5 Ways Guaranteed Payouts Secure your Family's Needs

dateKnowledge Centre Team dateFebruary 22, 2021 views181 Views
5 Ways Guaranteed Payouts Secure your Family's Needs

Attaining and sustaining financial stability is an aspiration for numerous people in India. However, it can become a difficult job to collect a huge sum of money to fulfill all your goals and aspirations, particularly when you have just started earning. Comprehending this requirement, financial institutions like Canara HSBC Oriental Bank Of Commerce Life Insurance offer various investment and saving plans that render guaranteed payouts. These investment policies can further assist you in strengthening your financial condition along with securing the future of your family and loved ones.

Guaranteed payout investment plans are income plans that are tailored to match the obligations of investors who don't prefer to bear contingencies that arrive with market-linked returns. These monthly investment plans provide people with fixed guaranteed payouts and maturity advantages. A person falling in the age group of 18-60 and drawing a fixed salary is eligible to make investments in plans that offer guaranteed payouts. The period of such policies ranges from 10-30 years.

How can Guaranteed payouts help in securing your family's needs?

Guaranteed payout monthly investment plans present both insurance and investment payout advantage. Some further generate a fixed deposit with appended riders that serve as a protective cushion. There is an exceptional need for guaranteed payouts investment plans. According to an official report generated by the Insurance Regulatory and Development Authority of India (IRDAI), presently, only 8% of the Indian citizens have chosen guaranteed payout plans and secured the future of their family, which is a substantially low number.

Every sole earning member of the family needs to invest in saving schemes in India that render guaranteed payouts to safeguard their family from any unforeseen mishap. Here are some of the benefits of having a savings plan.

1. Earnings replacer

Guaranteed payout investment plans render fixed payouts at a pre-decided rate of interest in the assured sum chosen by the person investing and the financial institution or the insurer. The most amazing thing about these is that a person can get fixed income at various intervals like monthly, periodically, semi-annually, or annually. Furthermore, these plans can assist you in financially guarding yourself and your family, particularly past your unfortunate demise or retirement.

2. Budgeting your funds

Another advantage of investing your corpus in a guaranteed payout monthly plan is that it can easily budget and compound your funds in a better way. You can invest some portion of your salary for meeting future expenditures like your kid's education or purchasing a house, or maybe your retirement expenses. These monthly investment plans assist in ensuring a guaranteed payout after the completion of the maturity period.

In the circumstance of the unfortunate demise of the person making investments in these schemes, the family members of such members can choose to withdraw the sum invested. Furthermore, they also have the option of receiving that sum as a fixed monthly income plan - that can work as a constant source of income for easy fulfillment of all their financial expenses.

3. Risk-free assured returns

These guaranteed payout policies always provide risk-free assured returns to people who are not willing to take any risk with their investments. Parking your funds in these kinds of fixed income plans will always ensure that you are under the minimum risk horizon in this volatile market, offering sound financial security to you and your family.

4. Tax advantages

If you choose to invest in these guaranteed payout schemes, say, for instance, you invest in a fixed payout insurance plan. Then, in that case, you will receive tax deductions under Section 80(C) of the Income Tax Act, 1961 on the payouts that are provided yearly. Furthermore, once the maturity moves forth under Section 10(D) of the act, you also receive tax exemptions.

5. Sufficing your long term and short-term goals

When you choose a guaranteed payout scheme, it is important to note that these plans fulfill all your short and long term goals as the needs and specifications of every individual are different. The Guaranteed payout monthly income plans present a multitude of benefits to the person choosing them. It further presents them with the choice of either withdrawing money in a lump sum or small monthly installments. This enables you to save money to accomplish both long-term and short-term goals.

Top guaranteed payout investment plans in India

A perfect fiscal investment plan with the guaranteed payouts is the most important component that enables you to fulfill all your long-term and short-term goals. However, before choosing a guaranteed payout yearly or monthly investment plan, you must consider all your personal situations and risk-taking capacity.

A guaranteed payout investment plan should split your monetary aims and requirements into time-specific goals. Mentioned below are some savings schemes in India that you can consider investing in for receiving fixed or guaranteed payouts.

  • Savings bank accounts

    A savings bank account is the most prevalent and conventional form of a monthly investment plan that can render guaranteed payouts. While the mediocre repo rate of a savings bank account is around 2 to 4%, it can be easily ensured that these guaranteed payout schemes do not get affected by the prevailing market volatility, assuring that your principal investment amount is safe, and so is the future of your family.

  • Realizable liquid funds

    Liquid funds are a type of mutual debt fund and are extremely open-ended income plans. These guaranteed payout schemes invest funds for the short-term that render fixed-interest with the assistance of money market instruments.

    If a person invests in highly liquid funds, they can hold easy access to the amount invested. Moreover, they get lucrative returns. These funds are the most beneficial monthly investment plan to receive guaranteed payouts and hence to secure the future of your family.

  • Equity Linked Saving Schemes (ELSS)

    Equity Linked Saving Schemes is yet again one of the best monthly income schemes in India that you can choose. These schemes invest 60 percent of your amount in equity funds and are completely tax-free. ELSS holds a three year lock-in period that enables you to multiply your funds without any impediment as there is zero redemption allowed.

    Post completion of this 3-year duration, you can sell these equities and use them for your expenses. A person can further make decisions depending upon their goals and the returns they are getting from these investments.

  • A fixed deposit (FD)

    Another excellent, guaranteed payout investment scheme is Fixed Deposit. It is one of the most secured and guarded investment alternatives that can be opted for a period of 3 years and renders fixed and guaranteed payouts. A fixed deposit always gathers higher returns for investors who are risk-averse.

    Furthermore, investing in a fixed deposit scheme is very easy, and the renewals render you with the advantage of interest compounding. When investing in a fixed deposit scheme, you need not fret regarding market volatility as the principal amount will always be secured. Along with all these benefits, you can receive a guaranteed return on investments beneficial in securing your future and accomplishing all your long term and short term goals.

  • Fixed maturity plans (FMPs)

    Fixed Maturity Plans (FMPs) are again the scheme that presents guaranteed payouts. These schemes invest your funds in close-ended debt mutual funds, the maturity period of which can be extended up to 5 years. These schemes offer the most lucrative returns and come with added tax benefits. You can always invest in this scheme for securing your family's requirements.

  • Treasury bills

    The government issued treasury bills are yet another way of receiving guaranteed payouts. You can choose to avail these treasury bills or bonds for a short term period like three years or for a long term duration like ten years. These treasury bills are completely secured from the market fluctuations and volatility and hold various maturity periods like 91 days, 182 days, or 364 days. Treasury bills are always presented at a discounted rate. However, they are always redeemed at the existing face value, which offers a more secured and lucrative rate of return.

    During the present times, there are a lot of expenses on healthcare, education, and other kinds of stuff. Investment products with guaranteed payouts can help stabilize your financial future. As there are hundreds of guaranteed payout investment plans available in the market, it is important to compare saving plans and then pick one as per your requirements.

If you are perplexed about your selection, you can choose Guaranteed payouts investment schemes like a fixed deposit or Equity Linked Savings Scheme that can secure the future of your family and fulfill all your requirements. Alternatively, you can connect with a financial advisor who can guide you with the required steps while choosing a monthly investment scheme that offers guaranteed payouts.

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Frequently Asked Questions

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 you invest in this savings plan. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

Who should invest in a Savings Plan?

If you are looking for a guaranteed income plan, then saving plans should be on your list of investments that you are planning to make. 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. Saving plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These saving plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

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. Choose an income plan based on your financial circumstances to stay afloat.

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What is the difference between saving and investing?

Saving is the money that you keep aside for emergencies or for buying any big-ticket item. Investing means growing or multiplying the wealth that you have by buying savings plan, or any other assets. Buying a savings plan will help you in achieving your investment goals such as retirement, your child’s higher education or marriage, or for buying a new house.

Which savings plan is best for retirement?

The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement. Also, Guaranteed Income4Life is also another savings plan that you can consider for building your retirement corpus as it acts as a guaranteed income plan that will provide you maturity benefits to manage your post-retirement expenses.

Which savings plan is best for long-term goals?

Smart Goals Plan is a savings 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. Canara HSBC Oriental Bank of Commerce Life Insurance offers a wide variety of saving plans that you can invest in as per your risk appetite and investment goal.

Which savings plan is suitable 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. Monthly Income Advantage Plans are also a good option if you are planning to invest in a savings plan for your girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having the best savings cum guaranteed income plan in your portfolio is extremely important. Savings plan ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a monthly income advantage plan?

A monthly income advantage plan ensures that you lead a stress-free life with your loved ones as it provides a life cover along with giving you guaranteed monthly income. In short, it is a life insurance and income plan that will financially secure commitments made to your loved ones. Canara HSBC Oriental Bank of Commerce Life Insurance Guaranteed Income Advantage Plan is a monthly income advantage plan that provides life cover for the entire term while you pay premium only for a limited period.

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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 in a savings plan. Invest in an income plan as early as possible to build a significant corpus that will later help you in life. Ensure that you buy the best saving plan in India that can be aligned with your investment goals.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. The best saving plan offers 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. Buy a monthly income advantage plan that will generate a steady source of income for you to take care of both long-term and short-term financial goals.

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 an income plan, it always pays well to start early. The earlier you start investing in a savings plan, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested in the best saving scheme for a long time can give substantial returns due to compounding. Buy the best savings plan as soon as you start earning to achieve all your milestones on time.

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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. Buy 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. Consider investing in a monthly income advantage plan to assist you in fulfilling your financial goals.

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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, which makes them a good investment choice for investors looking for income plans.

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