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What Are Guaranteed Saving Plans, And How Does It Work?

dateKnowledge Centre Team dateDecember 06, 2020 views157 Views
What Are Guaranteed Saving Plans, And How Does It Work?

Guaranteed Savings Plan is a life insurance cum savings plan that allows you to secure your life goals with the security of a life cover and guaranteed returns. Buying the best savings plan is an assurance that even if something goes wrong, your family can continue living their financial life the way they were when you were around. Not only that, savings plan also help you in planning for other life goals such as your child’s higher education, retirement planning, or buying your dream house during retirement. Guaranteed Savings Plan by Canara HSBC Life Insurance offers lump sum benefit at maturity that can take care of your post-retirement expenses.

Let us understand about this savings plan in detail:

How Guaranteed Savings Plan Work?

The savings plan offers a lump sum benefit to the policyholder at maturity. You can choose to pay the premium for limited years only or you can choose the premium payment frequency as per your financial circumstances.

There are three types of policies available:

a) Guaranteed saving option

b) Guaranteed Saving with double protection option

c) Guaranteed saving with premium protection option

When the policy matures, you will get:

a) Guaranteed Sum Assured

b) Guaranteed Yearly Additions

c) Guaranteed Loyalty Additions

Five Benefits of Guaranteed Saving Plans

1. Benefit on the maturity amount is maintained through Guaranteed Sum Assured

2. Bank provides complete security on the amount with Premium Protection choice

3. Upgraded Protection with Double Protection choice is handed out to the customers with Double Sum Assured on unforeseen circumstances

4. Credit Facility to meet impromptu monetary necessities

5. Tax benefits are provided to customers under Section 80C and Section 10 (10D), of Income Tax Act, 1961

Three Reasons to Invest in Guaranteed Savings Plan

Everyone has a distinct financial goal, a varied life experience, and a different perspective on risk and investments. Guaranteed saving plans may be the perfect savings plan for you if you are risk averse and want a steady, predictable, and long-term income from your assets.

Here are 3 reasons you should buy a Guaranteed Savings Plan:

1. Builds a Safety Net

If the policyholder passes away during the term of the policy, the death benefit will be paid to the nominee or beneficiaries. They will receive sum assured on death along with cumulative guaranteed yearly additions. If opted for Guaranteed Savings Plan with Double Protection Option and the reason of death of the policyholder is accident, then an additional amount equal to Accidental Death Benefit Sum Assured will be paid to the nominee. The amount received can be used for a variety of purposes. In case of the policyholder’s early or sudden demise, this savings plan will act as a financial safety net for the family.

2. Wealth Creation and Legacy Building

Build a legacy for your children and boost your wealth creation strategy with the best savings plan. Due to the effect of compounding, you can expect the invested amount to grow significantly with time. The wealth, thus created can be used to take care of the regular expenses of your family when you are not around. The maturity benefits can be also used for meeting your retirement goals. Any surplus can be passed on to the next generation of your family members.

3. Life Cover

As these are life insurance cum saving plans, you get a life cover. The maturity benefits will help your family in case of your demise. It caters to your financial needs when you retire. With a Guaranteed Savings Plan, you are also eligible for tax deductions under Section 80C of the Income Tax Act.

Guaranteed Saving Plans helps in shaping the future of the person, it gives financial independence. It is widely chosen by people to make them and family financially secure. It provides the best saving plan like retirement plan, children education plan, etc.

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