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Best Features Of A Guaranteed Savings Plan

dateKnowledge Centre Team dateJanuary 13, 2021 views56 Views
Best Features Of A Guaranteed Savings Plan

Saving is the most necessary virtue that we are taught since childhood. We start saving our pocket money in a piggy bank to save our salary in the bank in the hope of a better and secure future for our family. It is one of the most essential practices that is required for a quality life. You never know when an unexpected event can occur. However, if you are confused about where to save, how much to save, and when to save. Then let me tell you, you have landed in the right place.

Although being financially secure is not an easy job in today's world; however, with proper planning and careful investment, we can ensure a financially stable environment for ourselves and our family. There are various saving plans and life insurance available that can help you fulfil your dreams and ensure a safe and secure future for your family.

Guaranteed Savings Plan is one such way that can help you to establish complete security.

But first, we need to understand what a Guaranteed savings plan is.

What is a Guaranteed Savings Plan?

A Guaranteed Savings Plan is a Non-Linked and Non-Participating Insurance Plan that helps to provide you life security by offering a lump sum at maturity along with loyalty additions on cumulative premiums. It helps to boost your corpus so that you can achieve your goals and at the same time provides a safe future for your family.

Specific priorities in the future need to be secured beforehand. For example, you need to save right now to provide higher education and a better future for your child. It would help if you had savings for providing a beautiful marriage to your child. Thus, every need calls for savings, and therefore it is vital to save regularly to have a tension-free future. In a guaranteed savings plan, you need to save a small part of your income for some time, and then you can get a safe future. You will get various benefits like income tax benefits, death benefits, maturity benefits, and many more. However, the best part is you do not need to compromise with your present needs.

A Guaranteed Savings Plan helps in long term savings without compromising with your present needs. Ranging from saving capital for your child's higher education to their marriage this plan ensures that no goal is left unsecured. There are various multiple policy terms available, and you are free to the term as per your preference. It also has a loan facility (with specific terms and conditions) thus, providing you security during an emergency. You need to pay the premium for a particular time, and then you can enjoy life cover for the entire term.

With Canara HSBC Oriental Bank of Commerce Life Insurance, there are three types of Guaranteed Saving Plan available:

  • Guaranteed Savings Option
  • Guaranteed Savings Option With Double Protection Option
  • Guaranteed Savings Option With Premium Protection Option

Each of these plans has its features and significance. You can choose the plan that goes best with your income and requirements.

Features of Guaranteed Savings Plan

The key features of the Guaranteed Savings Plan are as follows:

  • You will get life cover for the entire term while the premiums are paid for a particular period.
  • You are free to choose the payment term according to your requirements and capability.
  • The Guaranteed regular additions depend upon your premium since it has a High Premium Booster facility. This means the higher the premium, the higher the Guaranteed regular additions. Thus, providing complete security.
  • You will get guaranteed returns no matter what the market conditions.
  • You will get Regular guaranteed additions.
  • You will get the maturity benefit provided all the premiums are paid.
  • You will get this maturity benefit only if the policy is in force till the maturity date.
  • The maturity benefit will be given on the date of maturity of the policy.
  • After the maturity benefit payment, your policy will be terminated, and no further benefits will be provided.
  • There are no medical tests required.
  • You will also get death benefits.
  • The maturity benefits include - a total of all premiums you have paid, guaranteed regular addition to the premium, and the maturity benefit.
  • You will get multiple policy term options and can choose according to your preferences and requirements.
  • You will get Income Tax Benefits - According to section 6 C and section D, life insurance policy, and maturity proceeds, are excluded from taxes.
  • Age criteria

For Guaranteed Savings Option

Minimum Maximum
Entry age (Life assured) 0 years 60 years
Maturity age 18 years 75 years

For Guaranteed Savings With Double Protection Option and Guaranteed Savings With Premium Protection Option

Minimum Maximum
Entry age (Life Assured) 18 years 55 years
Maturity age 28 years 75 years

Benefits of Guaranteed Savings Plan

Guaranteed Savings Plans can help you establish a promising and decent future for you and your family without compromising your present needs. You are just required to save a certain reasonable amount of your salary for some years and then get guaranteed returns. Even though there are various saving plans available, however, the guaranteed saving plan is quite flexible and beneficial as compared to others.

For Guaranteed Savings Option and Guaranteed Savings Option With Double Protection Option

Maturity Benefits

You will be getting Guaranteed Sum Assured on Maturity, Guaranteed yearly additions, and Guaranteed Loyalty Additions in maturity benefits. These payments are made based on the plan’s maturity, provided that all the premiums are paid regularly. And after this date, the policy will be terminated, and no further benefits will be payable.

Death benefits

In an unfortunate event of the death of the life assured, provided the policy is still in force and not terminated, the death benefits will be paid to the nominee. These benefits are - some guaranteed on death along with cumulative guaranteed yearly additions till the date of death. And after these payments, the policy will stand terminated, and no further benefits will be payable.

Loan facility

In case of any urgent situation, you can also avail this policy’s loan facility. The minimum loan that you can borrow is Rs 20000 and the maximum is 80% of the overall surrender value at the time of taking the loan. However, this loan facility is available only for those people whose policy is still in force.

High Premium Booster

According to the premium deposited annually, there will be an increase in high premium booster. This increase depends on the amount you will deposit annually.

Tax Benefits

According to section 80C, premiums paid under a life insurance policy are released from taxes, and according to section 10D, maturity proceeds are also exempted from taxes.

For Guaranteed Savings Option With Premium Protection Option

Thus, if you are looking for a scheme that can help you to save regularly and at the same time provide you with additional benefits, then this is a perfect plan for you. You need to save a part of your salary and enjoy various additions to it on maturity. The plan is also quite flexible, and you have the facility of loan too with this plan. Therefore, it is a perfect solution for all your future needs and urgent requirements without compromising your present wishes.

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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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