Guaranteed Savings Plans: Why a Great Idea to Secure Future?

2020-12-05

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Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

When the word "plans" comes to our minds, what is associated with that word? The term plans are something most talked about nowadays. The best way to back your future is a Savings plan. These plans are considered the best investment methods by experts.

So, what is a savings plan? And what is the best option for a Saving plan?

A savings plan is an insurance plan that helps an individual to gather and set aside a reserve pool for the future. They ensure returns when the policyholders need it the most. It is a systematic and disciplined plan.

Why do we need a Saving plan?

Age and term:

These plans are flexible and can be molded according to the age of the holder. For example, for a young person, the risk-taking factor may be high so that they may be suitable for unit-linked insurance plans (ULIPs) and those who can't afford risks like money back or endowment plans. The long term plan also allows securing a minimum amount during the policy term.

Life covers and provisions:

Some plans like ULIPs offer life insurance and another benefit of savings return. Other provisions provided by ULIPs are the protection of the holder and his family against any loss like accidental death, disability, and illness.

Options of investment:

They offer investment in tools like equities, including fixed interest securities, including corporate bonds, government securities, and money market instruments.

Saves tax:

Like most plans, Saving plans also offer tax benefits. According to section 80c of the Indian Tax Act, 1961, a policyholder can save up to 1.5 lakhs. Maturity and death benefits are also eligible for tax exemption under 10D of the Indian Income Tax Act, 1961.

Helps in meeting specific goals:

Some of these plans are designed towards meeting the goals of policyholders, like education goals for children.

Why is a savings plan essential?

Will provide benefit on maturity that all your dues are paid.
The guaranteed plan covers you for your life rather than pay a premium option, which is limited.
You can choose enhanced protection for your family. Provides benefits upon sudden death; all other premium plans are not payable and guarantee services on maturity (Premium Protection Option).
You can choose a flexible payment term according to your requirements.
Investors can customize savings and goals according to their Income.
Value plan with the premium booster.

How Does a savings plan work?

Investors can customize their policies according to their goals and requirements in just three simple steps:

STEP 1: CHOOSING YOUR PERFECT PLAN

According to the investor's financial need, plans can be selected :

If they want a life cover within the policy term and lump sum after maturity, they can choose the "Guaranteed Savings plan."
If they want enhanced protection with policy benefits and lump sum after maturity, then we can recommend "Guaranteed Savings plan with Double protection" (with sudden accidental death additional amount is given, but in case of other deaths, no amount is paid)
And if you are thinking about your child's future, then a "guaranteed savings plan" with "premium protection" is available.

STEP 2: CHOOSING YOUR PREMIUM AMOUNT

You can choose the amount you are comfortable with available at your maturity policy to compromise your financial needs.

STEP 3: CHOOSING YOUR PAYMENT TERM AND PREMIUM PAYMENT

This step will determine how you will choose your payment plan, preference, savings, along with your future goals.

Benefits :

The benefits will change and vary according to the specific plans. Some of the services are given below:

Assured amount of sum on the death, which is a slightly higher amount:

You will get 11 times of annual premium
105% of Total Premiums Paid as on date of death, or
Guaranteed Sum Assured Maturity, or
The reassured amount is paid on death

Survival benefits

The investors can avail of all the benefits at the end of policy years after completing premium maturity. Your guaranteed income will be equal to annual Income with boosters if applicable.

Premium payment term	Policy term	Total number of income payouts	Timing of income payouts	Income payment percentage	Basic Guaranteed annual income
7	12	5	End of Policy years	140%	(The income payout percentage ) × annualized premium
10	15	5	End of Policy years	200%	Income payout percentage× annualized premium

Maturity benefits

If you survive through the end of policy ( your dues are fully paid ), then you will receive guaranteed savings at the end of maturity. Then you cannot avail any benefit, and your policy will terminate.

Death benefits

In case of your sudden demise ( within the policy period), your heir will receive all your amount payable, and after that, your policy will terminate. Plus, your survival benefit that is already paid will not be deducted.

Loan facility

In sudden need of cash, you can take the loan amount under the surrender value. The minimum amount of loan is about 20,000 and is the maximum 80% of the surrender value. Loan can only be availed at in-force policy.

High premium boosters

Guaranteed annual income will increase with high premium boosters.

Annualized premium	High premium boosters ( as % of basic Guaranteed annual income)
Less than 2,00,000	Nil
Greater than or equal to 2,00,000 to less than 5,00,000	1.00%
Greater than or equal to 5,00,000 to less than 10,00,000	1.75%
Greater than or equal to 10,00,000	2.00%

What's the age criteria?

Guaranteed savings option

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

Guaranteed savings with double protection option

Parameters	Minimum	Maximum
Entry age (life assured)	18 years	55 years
Maturity age	28 years	75 years

Guaranteed savings with premium protection option

Parameters	Minimum	Maximum
Entry age ( life assured)	18 years	55 years
Maturity age	28 years	75 years

GUARANTEED SAVINGS WITH PREMIUM

Maturity benefits
Death benefits
Guaranteed Yearly addition

It's never too late or even early to invest in a savings plan. With a guaranteed saving plan, you can live your life without worrying about anything. To achieve this goal, you will need Canara Bank guaranteed saving plan.

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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