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Guaranteed Savings Plan to Secure the Future of your loved ones

dateKnowledge Centre Team dateJanuary 12, 2021 views124 Views
Guaranteed Savings Plan to Secure the Future of your loved ones

Everyone wants to secure their family’s future to make sure that they will not face any financial problems in their absence. In India, one of the best things a person can do for their family is to make their future secure and completely tension-free by investing in savings plans. After the birth of a child, every father focuses on their future education and marriage. The advantages of securing the future by savings plans will be discussed in detail in this article.

A guaranteed savings plan is one of the best plans with great returns to secure the future. Canara HSBC Oriental Bank of Commerce Life Insurance Company provides a new guaranteed savings plan for its users to achieve higher returns at the time of maturity. The features of a guaranteed savings plan are mentioned here; check it out for better understanding:

Guaranteed higher return at the time of maturity: Achieving higher return after paying plan installments is quite a hectic process for the ones who indulge in some random plan without checking all the pros and cons. This guaranteed savings plan provides higher returns to their users than the other plans.

Life cover for the entire term: This unique savings plan provides a life cover for the entire term while you pay the premium for a limited period. These features secure your family’s financial conditions during the absence of the policyholder.

Enhance your family’s protection: This life insurance plan secures your family’s financial status after your death by providing a lump sum amount. If in case of death, the remaining premiums are not required to be paid and your family will get guaranteed benefits payable on maturity.

The flexibility of choosing a payment method: There is full flexibility to pay your selected savings plan’s premium. Many modes of payment like online transactions, offline deposition can be considered. As the development of the technological world is happening at a brilliant rate, so shifting from offline to online payment mode is quite helpful for the users.

High premium booster: You can also use the high premium booster options by paying a higher premium to achieve extra benefits by making higher premium commitments.

Eligibility criteria

Age and other factors are some of the eligibility criteria for securing your money in a guaranteed savings plan. There are three modules of this plan: guaranteed savings option, guaranteed savings with double protection option, and guaranteed savings for premium protection. The age limit varies in all three options. Check out the tables given below to understand better:

Guaranteed savings option:

Parameters Minimum Age Maximum Age
Entry Age O Years 60 Years
Maturity Age 18 Years 75 Years

Guaranteed savings with double protection option:

Parameters Minimum Age Maximum Age
Entry Age 18 Years 55 Years
Maturity Age 28 Years 75 Years

Guaranteed savings with premium protection option:

Parameters Minimum Age Maximum Age
Entry Age 18 Years 55 Years
Maturity Age 28 Years 75 Years

Guaranteed savings option and Guaranteed savings with double protection option

Mostly all the terms and features of the Guaranteed savings option and Guaranteed savings with double protection options are quite similar making them identical in many terms. Check out the features and benefits of these options at the time of maturity and death mishappening.

Maturity benefits: After the successful completion of your term period, a user will get the benefits mentioned below:

  • Guaranteed Sum Assured on Maturity
  • Guaranteed Yearly Addition(s)
  • Guaranteed Loyalty Addition

After the payment of the benefits mentioned above, your term will be terminated and no further benefits will be provided.

Benefits after death:

Death is a mishappening and we always try to secure the user’s family in case of mishappenings like death. All the benefits mentioned below will be awarded to the policyholder’s family.

  • Sum Assured on Death, plus
  • Cumulative Guaranteed Yearly Addition(s) added, as on date of death

If the insured opted for the double protection option then, in case of death by an accident, an additional sum which is equal to ADB Sum Assured will be paid to the family. After all the payments, your term will get terminated and no further benefits will be given to the family.

Guaranteed saving option with premium protection option

A guaranteed saving plan with a premium protection option provides many benefits that are different from the above mentioned ones. This option has more security and higher returns as compared to the other two. Check out the benefits at the time of maturity and death.

Maturity benefits: The benefits a user will get after the successful completion of the term period are given below:

  • Guaranteed Sum Assured on Maturity
  • Guaranteed Yearly Addition(s)
  • Guaranteed Loyalty Addition

After the successful payment of all the benefits to the policyholder, the insurance term will be terminated, and no other benefits will be awarded in any case.

Death benefits: In case of an unfortunate death during the term of your guaranteed saving option with premium protection, the following benefits will be awarded to your family:

  • Sum assured on death - Your family will get a sum assured on death.
  • All future premiums are not required to be paid and the policy shall continue to be in force for the remaining Policy Term
  • On maturity - The guaranteed sum assured will be paid to the family for the policyholder along with guaranteed yearly addition and guaranteed loyalty addition.

After the successful payment of all the benefits, the insurer is not bound to pay any other benefits to the beneficiary.

Other additional benefits

In a guaranteed saving plan with different options, many other benefits like a loan and a high premium booster are also available.

Loan Facility: In case of any urgent need, users can use the loan facility to face urgent needs after the policy acquires surrender value. The minimum loan amount a policyholder can avail is Rs. 20,000 and the maximum amount a user can avail is 80% of the surrender value at the time of acquiring the loan. There will be an applicable loan interest on the loan amount which varies yearly.

High premium booster facility: High premium booster facility is a facility for those who want higher returns at the time of maturity. Paying a higher premium will automatically increase the returns on that particular premium. The table below shows the percentage of return a policyholder will get by using a high premium booster facility.

Annualized Premium High Premium Booster (as % of Basic Sum Assured)
20,000 to 30,000 Nil
30,000 to 40,000 4%
40,000 to 50,000 7%
50,000 to 75,000 8%
75,000 to 1,00,000 10%
Greater than or equal to 1,00,000 11%

The insured can avail the benefits of a high premium booster. Read all the documents of the term plan regarding the high premium booster to collect required information and data for further use in the future.

Why you should opt for a guaranteed savings plan

Policyholders can use the benefits of a guaranteed savings plan to secure their loved one’s future. It also offers other advantages such as higher returns. Many benefits will be available at the time of maturity. In case of mishappening like death then the insurer will provide the benefits to the family.

Securing the future: Saving your valuable money in a reliable savings plan helps you lead a tension free life. Marriage and education fees are the things every head of the house plans years before the time and a guaranteed savings plan will be one of the best options you can choose to plan for these occasions.

The scent of relief in case of any accidental death: Death is not in our control but securing our family’s future before the death is in our hands. The head of the house should always plan the family’s future by acquiring a guaranteed savings plan.

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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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